Tax Cuts For the Rich? Oh No!

That's right, you heard me, tax cuts are coming ... or continuing .... depending on who you are listening to. The Obama administration has signaled that tax hikes are definitely off the table and that tax cuts may actually be needed to get this economy moving again.

Amazing isn't it? Looks like our new President is a very savvy politician and a pretty bright guy. We were all worried that his Tax the Rich mantra during the campaign would ruin the country.

As it turns out, it may have been a ploy to keep his liberal/socialist base pumped up and headed to the polls. When in reality he has had a mindset to rule as a centrist all a long.

The thing I love here is that even a democrat is acknowledging that lower taxes stimulates the economy and creates growth. But while they talk about the need to lower the taxes to get things moving again, they still signal that taxes will need to be raised in a couple of years.

The argument is that spending cuts alone will not be enough to stem the tide of a rising deficit. I say hog wash! Spending cuts alone stemmed the tide of rising deficits in my household. Was it painful? You betcha! Was it necessary? Damn straight!

According to an article on MarketWatch.com, tax stimulus that give tax payers $500 at a time doesn't stimulate the economy because we (the consumer) just put that money in the bank as savings. However, lower tax rates that can add $10-$20 per week to a paycheck add just enough money that it doesn't get saved and increases consumer spending.

http://www.marketwatch.com/news/story/Tax-perks-stimulate-economy-coming/story.aspx?guid=%7BDD44159D%2DD4AD%2D45C7%2D8AE6%2D5B765653CDA5%7D

So here we go again! Spend, Spend, Spend! Note in the article that 'saving is bad'. The implied message is that spending is good. However, in that very same article some economist state that saving IS good and we should encourage it.

In the end, even though there is a glimmer of hope that someone in D.C. 'gets it', it appears that the inmates still run the asylum .... So, I'm going to save, save, save and hope that these idiots finally get a clue. Until then, watch your wallets, their safe for now, but at some point the government is coming and they will force you to give them your last thin dime!