So I just received the first benefit of Bush's Jobs and Growth Act of 2003. I got a whole $30 more in my paycheck. Big Deal.
Over the course of the year that means I will have saved $720. That is the keyword SAVE. This is why Bush's tax plan makes absolutely no sense to me. Do I really feel richer with my additional $30 twice a month? Not really. Do I really plan on spending this new found money on anything? Not really. The money will go nicely away somewhere in the computers of my bank.
Maybe its because I don't have a family and I have the ability to save a lot every month. I understand that most people my age aren't in the position to save very much money and would welcome the extra cash. Those with families, struggling and in my income bracket probably really do need the relief. But that being said, if those familes are really struggling how about those who earn minimum wage? How about those who struggle to get by and make 1/4 or even 1/5 of what I make. How do you think they feel? Trust me, I know. My mom raised 3 kids on her own and put me through college on 1/3 of what I make today. Why don't you just give her some more money back?
Maybe I'm more magnanimous than most but come on people. Let's forget the human part of my argument for a second. After this, it's basic economic theory. My marginal propensity to consume is MUCH lower than someone like my mother. I MIGHTspend $10 of my new found $60 a month. Someone who is poor? They WILL spend all $60. However, for a cut this small I probably won't spend ANY of that $60. So I, the "rich" (I don't consider myself wealthy but in this context I would have to be), really do just get richer. And or course this doesn't at all help the economy now since I'm not consuming any more. It doesn't help the economy later because we just put ourselves into a bigger deficit in the future.
I'm not promoting communism, quite the contrary. I'm probably the biggest Capitalist and fan of Adam Smith there is. Let's just be honest with ourselves. If you want to help the wealthy fine, but don't cloak it behind the charade of trying to stimulate the economy. Clearly there are better ways to do that than with this bogus tax cut.