David Sirota: The Stimulus Swindle

[marmar]

from OurFuture.org:



The Stimulus Swindle
By David Sirota

January 25th, 2008 - 10:53am ET


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Whenever Washington starts patting itself on the back—whenever politicians of both parties start praising each other on an economic issue—hold onto your wallet, because you are about to get fleeced. That's precisely what happened during the debate over the economic "stimulus" package, as I show in my new nationally syndicated column out today.

Though Democrats did win manage to include some progressive tax rebates in the final package, roughly $70 billion of the agreement is business tax cuts - yet another gift to K Street and the corporate interests that need help the least. Instead of strengthening the social safety net, which would get cash flowing in the economy the fastest, Congress is opting for tax cuts that experts say would not hit the economy for months.

The package shows just how skewed our economic and tax debate still is on both sides of the aisle in Washington. Despite the Democracy Corps' most recent poll showing that Americans are ready to embrace major progressive tax reform, Democrats quickly embraced the tax cut frame. Despite the Bush Treasury Department admitting that America has one of the lowest effective corporate tax rates in the developed world, Republicans are saying with a straight face that the way to make America more competitive is to cut corporate tax rates further.

The whole thing reeks of politics and payoffs - as usual. Here we have major health care, unemployment, public infrastructure and housing crises, and our government is once again stumbling over itself to hand over more of the federal treasury to private corporate interests - many of the same interests that caused the current financial meltdown. If historians does look back at this era as the beginning of America's diminishing strength, they will hold up this "stimulus" package as a pristine example of what went wrong.

http://www.ourfuture.org/blog-entry/stimulus-swindle

[Jackpine Radical]

1. Maybe our one hope of salvation is that these people haven't done their homework.

Specifically, they must have never read Machiavelli. Machiavelli always argued that his "Prince" could go only so far in shearing the flock. He would never have let the Prince get this greedy, for fear of a bloody revolution. It is only when the sheep feel intolerable pain that they look up and begin to see what is happening to them. Even Superbowls and Britney spears may not be enough to keep them anesthetized when that happens.

[Robbien]

2. This giveaway to corporations is also a real big blow to States income

So many States are hurting for cash and this corporate giveaway just hurts States even more

Stimulus plan could ravage state budgets
http://toledoblade.com/apps/pbcs.dll/article?AID=/20080126/NEWS24/801260438/-1/NEWS

In fact, the $50 billion in tax breaks earmarked for small businesses could drain a total of $4 billion from the coffers of Ohio, Michigan, and 33 other states that have hitched their tax rates to those of the federal government, according to the Washington-based, nonpartisan Center for Budget and Public Priorities.

Ohio stands to lose $113 million in corporate and personal income taxes. Michigan could lose $151 million.

“By our count, about half the states are now projecting shortfalls going into the next fiscal year,’’ said Nicholas Johnson, director of the center’s state fiscal project. “So not only is there no aid for states as it’s written now, but states that already have shortfalls will lose money under the bonus depreciation.’’

The whole stimulus plan just suck.

[leftchick]

3. it proves once again

most of the democrats in congress represent corporations and not us. I wish we could vote the bums out, but with the DLC stranglehold on potential candidates is is not likely.

:(