How could someone seemingly get everything they touch wrong? You would think proposing tax cuts would be safe territory for our incumbent president, until you examine his actual proposed cuts.
President Obama is expected to announce a $200 billion two year tax cut for business to encourage them to move up their capital expenditures and stimulate the economy through their purchases — essentially applying the “cash for clunkers” car sales economic model to capital spending by business.
Some would ask what is wrong with a business tax cut that purports to stimulate the economy? It sounds almost Republican.
The answer is at least three fold.
1. This tax cut just like the grants and
spending from the stimulus package, attempts to pick winners and losers
favoring businesses with heavy capital expenditure outlays like the
U.S. government-owned General Motors, or the UAW-owned Chrysler
Corporation, over service-oriented businesses who will derive little if
any benefit.
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