To illustrate the failure of the current policies lets look at two alternate ways to use $150 Billion tax dollars each year.
Bush wants the tax cuts for his wealthy supporters made permanent. The reduction in the tax rates on the TWO TOP income brackets and the reduced dividend taxes rate cost the treasury about $150 Billion EVERY Year in tax revenue compared with restoring the rates on just the wealthiest tax payers to pre 2000 rates.
The Bush plan will have the money go to people who do not need the added money and who will not spend most of that $150 billion.
Consider this alternative. Restore the Tax rates on the wealthy and use the added federal revenue to fund tax credits to install geothermal, solar conversion or wind generation equipment on their homes or small bisinesses to reduce the demand for foreign energy. This plan would also create jobs and added profits for the companies installing and manufacturing this new equipment. When the equipment was installed, the homeowner would have lower energy bills which would enable them to increase their non energy purchases to help stimulate economic activity. We would lower our purchase of foreign oil and gas.
Which plan is better for our economy? Which plan would benefit the most people? Which plan would help move us away from dependence on foreign oil?
Which plan do you think Bush and his GOP leadership in Congress will support?