Senate Republicans Put Forward Alternative Stimulus Plan

Republican Senators put together an alternative stimulus package that has a much lower price tag than the current version of the stimulus bill, as the AP reports that the current plan tops $900 billion. The Republican alternative allows home owners to refinance their home mortgages at a low interest rate that will help the home owner and help stabilize home prices in general. This plan also provides more money for infrastructure projects than the current bill and cuts the payroll tax and the corporate tax to encourage economic growth and job creation. Also, it requires spending cuts once the economy has rebounded helping to limit the amount of future government debt. CNN reports not only that their is a this second bill, but moderates are also working on the current bill trimming the excess pork...

Some Republicans want to take it a step farther than their party's leaders. Ten Republican senators, including Sen. John McCain, want more funds -- almost $90 billion -- for infrastructure. They are shopping around a plan with a price tag of just under $500 billion.

"We can either fight the Democrat proposals, which would increase the deficit incredibly and mortgage our children's futures and not beneficially stimulate our economy, which we will do, in many respects. But we have to have a proposal of our own," said McCain, R-Arizona.

That version of the stimulus measure, put together by Florida Sen. Mel Martinez, is broader than the one proposed by GOP leadership, but narrower than the Democratic bill.

The group of Republicans met Tuesday to discuss their plan because they don't believe their leadership's approach, focusing exclusively on the housing crisis and tax cuts, is enough to jump-start the economy.

Another alternative that's getting a lot of attention is a bipartisan plan from Nebraska Democrat Ben Nelson and Maine Republican Susan Collins. The two moderate senators are looking at the current economic stimulus package and trying to scrub it of all spending that they say will not stimulate the economy.

One attempt to trim pork from the current bill was successful. An ammendment passed sponsored by Tom Coburn that eliminated a $246 million dollar tax break for Hollywood movie companies.

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Senator McCain has sponsored a petition protesting the current version of the stimulus bill...

Sign Vote No On The Stimulus Package Petition

Democrats Take Aim At Investments and Savings

US News and World Report is reports in their article Why Democrats Will Target the Investor Class in 2009 that a Democrat run government will target a government take over of savings and investments for political expediency. It should be noted that the 'investor class' includes people who put thier savings in IRA's and 401K's. This isn't the super wealthy, this is most often responsible middle class Americans that save for retirement and other needs. This not only threatens people's savings it is more evidence that a government fully controlled by the Democrats will result in a dramatic lurch to the left as thes are plans for more big government control.

1) Hike Investment Taxes. Obama wants to raise capital gains taxes even though he has kinda, sorta admitted that it might be bad for the economy and might actually decrease tax revenue to the government. For now, he's talking about raising the highest cap gains rate by one third to 20 percent, though earlier in the campaign, he floated pushing it as high as 28 percent, a near doubling. (Recall that Democratic presidential contender John Edwards wanted to raise it as high as 40 percent, a move that was applauded by liberals who want investment income to be taxed as onerously as labor income.) With the next administration facing a trillion dollar budget deficit—maybe more—there will certainly be pressure to raise taxes to higher levels than now being suggested.

2) Eliminate 401(k)'s, IRAs, and other retirement plans. Democrats in the House are now talking openly about the longtime liberal dream of repealing the tax advantages of putting money into a 401(k) plan or other tax-advantaged retirement account. "The savings rate isn't going up for the investment of $80 billion [in 401(k) tax breaks], we have to start to think about whether or not we want to continue to invest that $80 billion for a policy that's not generating what we now say it should," said Rep. Jim McDermott, a Democrat from Washington at a recent hearing, according to an industry trade paper.

Indeed, House Democrats recently invited Teresa Ghilarducci, a professor at the New School of Social Research, to testify before a subcommittee on her idea to eliminate the preferential tax treatment of the popular retirement plans. In place of 401(k) plans, she would have workers transfer their dough into government-created "guaranteed retirement accounts" with a 3 percent real return.

Not only would removing the preferential tax treatment of these vehicles raise investment taxes by $100 billion a year and affect Americans making less than $100,000, it would surely prompt many Americans, already shell-shocked by the market's recent losses, to flee stocks. All this ignores the fact that there are trillions of dollars in American retirement accounts, and abandoning the higher-returning stock market at a probable bottom is classic financial foolishness. If you believe long term in the American economy, then you have to believe in the stock market. If you don't, then you have to admit the government won't be able to afford its promises anyway.

3) Replace private capital with public capital. But wouldn't a weak stock market hurt the economy by making it tougher to raise investment capital and lessen the return on risk? Surely, it would. But Obama is planning hundreds of billions of dollars of government "investment" in cutting-edge technology, particularly in the energy and healthcare sectors. One specific example: Obama wants to create something called a "Clean Technologies Venture Capital Fund" and invest $10 billion a year in emerging energy technologies. Now, the private VC industry is already pouring billions into alternative energy, but Obama thinks that's not enough and wants Uncle Sam to get in on the action at taxpayer expense. Interestingly, a new study by the University of British Columbia looked at the performance of the Canadian government's venture capital efforts. It found that government venture capital isn't nearly as successful as private venture capital.

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Democrats Take Aim At Investments and Savings

McCain Good for Business and Good for the Economy

Often times pro business even pro small business policies are looked upon with disdain as can be seen in Senator Obama recently comments criticizing Senator McCain for caring more about Wall Street than Main Street. However, this is a myopic view of the economy. Pro business policies create jobs, pro business policies help grow the economy. Putting the breaks on an already sagging economy with increased taxes does nothing for the American worker exept make life harder. CNBC notes that small business owners recognize that McCain Understands Small Business Owners

The following is a statement from American Small Business League (ASBL) President Lloyd Chapman: One look at Senator John McCain's website will tell you, this is a man that knows and cares about America's 27 million small businesses. He knows 56 percent of all Americans work for small businesses. John McCain is a small business guy through and through.

Time also reported on the 300+ professional economists that back McCain. Conversely the Union Leader disusses how Senator Obama's tax plan does not add up in their article It doesn't compute: Obama's tax plan a ruse.

Numerous organizations, including the Associated Press, have noted that Obama's proposals spend hundreds of millions of dollars more than his tax hikes raise. What is less well known is that Obama's tax plan itself sends out of Washington far more than it brings in. Obama's campaign twice admits that in the wording of the tax plan.

According to the plan, "his tax relief for middle-class families is larger than the revenue raised by his tax changes for families over $250,000." That sounds like he's giving a net tax cut. But much of what he calls "tax cuts" are actually cash payments to low- and middle-income Americans. Ultimately, he sends out of Washington hundreds of billions of dollars more than it takes in.

In other words, Obama promises more in benefits to low- and middle-income Americans than his plan can finance with his tax hikes on "families" making more than $250,000 a year. And note the word, "families." Even though Obama says that no "family" making less than $250,000 a year will see a tax increase, in fact his plan raises taxes on individuals making $200,000 a year or more.

The bottom line is that Obama is not being honest about his tax and spending plans. It is impossible -- impossible! -- for him to finance his giveaways by taxing only those making $250,000 or more. He will have to raise taxes substantially on people making much, much less than that.

Senator Obama's plans to "spread the wealth" are anti-growth measures done in the name of fairness. However, there is nothing fair about halting economic growth. There is also nothing fair about punishing success.

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McCain Good for Business and Good for the Economy