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House Republicans Offer A Stimulus Plan

The House Republican Whip, Eric Cantor, has posted an alternative to the Obama/Pelosi stimulus bill on his website:

House Republican Economic Recovery Plan

House Republicans are proposing:

Immediate Tax Relief for Working Families:

Rather than a refundable credit based on payroll taxes, House Republicans propose reducing the lowest individual tax rates from 15% to 10% and from 10% to 5%. As a result every taxpaying-family in America will see an immediate increase in their income with an average benefit of $500 in tax relief from the drop in the 10% bracket and $1,200 for the drop in the 15% bracket. A married couple filing jointly could save up to $3,200 a year in taxes.

Help for America’s Small Businesses:

Small businesses (those employing less than 500 individuals) employ about half of all Americans, yet they can be subject to tax rates that siphon away one-third or more of their income. House Republicans propose to allow small business to take a tax deduction equal to 20% of their income. This will immediately free up funds for small businesses to retain and hire new employees.

No Tax Increases to Pay for Spending:

The stimulus proposal pending in Congress includes record levels of government spending that will substantially increase the current deficit. House Republicans are concerned that this level of spending will result in some proposing near-term tax increases on American families. House Republicans are insisting that any stimulus package include a provision precluding any tax increases now or in the future to pay for this new spending. House Republicans believe that any stimulus spending should be paid for by reducing other government spending, not raising taxes.

Assistance for the Unemployed:

Incredibly, the Federal Government actually imposes income taxes on an individual receiving unemployment benefits. House Republicans propose to make unemployment benefits tax free so that those individuals between jobs can focus on providing for their families. The plan would also extend unemployment benefits from March to December, 2009.

Stabilizing Home Values:

The real-estate market is paralyzed as potential buyers wait on the sidelines waiting for prices to fall even further. This is becoming a self-fulfilling prophecy. In order to encourage responsible buyers to enter the market and stabilize prices, House Republicans propose a home-buyers credit of $7,500 for those buyers who can make a minimum down-payment of 5%.

This proposal makes a lot of sense. (Though not as much sense as our plan of spending the $900 billion building nuclear power plants.)

Which of course means Mr. Cantor’s plan will never have a chance.

After all, the Obama/Pelosi “stimulus” bill is nothing more than a payback to their loyal foot soldiers like ACORN and the SEIU, and a way to buy future votes and create more Democrats.

This article was posted by Steve Gilbert on Monday, February 2nd, 2009. Comments are currently closed.

23 Responses to “House Republicans Offer A Stimulus Plan”

  1. proreason

    Mr Cantor is looking a bit peaked. If he keeps talking like this, there may well be a health problem, or an embarrassing personal disclosure in his immediate future.

  2. NotStuckOnStupid

    These proposals make WAY too much sense. Which means that, with the lunatics running the asylum, it will fall deaf ears.

    Applause and kudos to Mr Cantor and the House Republicans, however. Its a great effort, and I hope Mr Steele will see to it that its well publicized.

  3. Reality Bytes

    Obama & Pelosi are so invested in their Class Warfare Surge against the employers, immediate cash flow fixes like tax cuts will never see the light of day.

    RB owns a small business. My wife & I receive a combined income just shy of 200K. This for a business that WE unionized because we thought it an honorable commitment to our workers health & well being. Wow! Were we mistaken!

    God forbid there’s a good year, because it ramps up receivables, inventory & pay down in debt (to the unknowing are all good things, right?), which drains cash flow. Worse, if we show a profit, say a couple hundred grand, our first question is “well, where is it?” Receivable (money customer’s owe us), inventory & debt pay down is the answer.

    So, what does RB & the bride have to do? We borrow money to pay the taxes. Why? Because unlike RB, Inc. the IRS doesn’t wait for its payment – unless of course you’re a democrat congressman or Obama cabinet pick.

    Seriously, never has the rule of law been so unevenly applied than under the liberal democrats who are in leadership today.

    • proreason

      Convert to cash accounting.

      And request payment in cash whenever you can, if you know what I mean.

      There is absolutely no reason anymore to be honorable about taxes.

    • Reality Bytes

      PR: Unfortunately, my clientele happens to be those who Washington is crucifying recently. Wait! That’s just about anyone with a job. I mean Hedgefunds & investmernt firms. The bigger they are, the longer they take to pay & the more of them wind up in the Obama administration.

    • JohnMG

      My year-end trip to the accountant is coming up soon and that is precicely what I’m asking she do is advise me to that end in every way. My business is small so it is more easily scrutinized, but where there’s a will……..

    • Reality Bytes

      John: After our third audit in 5 years (with no changes by the way), I asked the auditor why. He said when the fed or state IRS finds a clean small company, they use it for “practice” for their new hires. He was a young guy who was just being honest. I hope he got out of that rackette before it ruined him.

      BTW – I’ve gone so far as to open a second business as a manufacturing subsidiary – thinking that balancing one set of books would result in tax advantages just like big corporations have been doing. What happened? RB made profits in both companies & I got hit with a double billing from the accountants who’s idea it was in the first place.

      I’m betting I’m more the norm than the crooks Washington is trying to make buseinss owners out to be. Imagine that! Washington callin’ someone else crooks!

    • JohnMG

      I understand completely, RB. For me, fortunately, tracking becomes a bit more difficult….for them. I’m in construction (very small, now, by design) and operate as an LLC. The corporate thing became too much of a burden, financially, for a business with only one employee remaining. Unlike manufacturing, I report zero inventory at year-end. I’ve piggy-backed on my wife’s health insurance plan to pare costs. I manage my accounts-payable and my accounts- receivable very closely, and my uncollectables are rare. What some might call undue caution serves me well. I’d rather not have a project as to work my butt off and end up writing it off against my successful endeavors–what a long-ago math teacher called a “zero function”. One of my repeat clients is retired from IRS and he’s one of the biggest proponents for ‘hiding what you can’. We’ve had some entertaining conversations concerning that department of government, which by his account was one of the first government agencys to be “infected” by affirmative action hires. Fortunately for him he was close enough to retirement that he could hold his nose for the remainder of his time.

      I’ve been audited once, but let me assure you, I wasn’t given the option of filing an amended return, and then writing a check, sans interest and/or penalty. To say the experience was unpleasant challenges the limits of understatement. The penalty , by the way, was greater than the tax they determined that I owed. Go figure?

    • proreason

      I’ve heard that the non-working obscenely wealthy are audited far less than average Joes.

      Considering that Theresa Kerry paid 12.7% taxes on the 1/2 of 1% of income she reported in 2003 (for a total tax percent of 6/100 of 1% of her fortune), the year the stock market rose 26%, it seems a bit mysterious.

      It couldn’t possibly have anything to do with policical contributions, could it? Just as a mental exercise, if Theresa contributed $1 million in 2003, it would have been 1/10 of 1% of her fortune. But since we live in America, that can’t possibly be the reason.

      RB, I know people get bored with numbers, but it sounds like your business is worth about $1M (to someone capable of running it, of course). To contrast your situation with what Madame Kerry paid on a percentage basis in 2003, you would pay $627 in taxes per year. I suspect you pay a bit more…..but then, you work, and she doesn’t, so it’s only fair, right?

  4. sheehanjihad

    it’s kind of a hard pill to swallow, but after I pay INTO the unemployment system via taxes out of my paycheck for years….now I have to pay taxes on the taxes I already paid. Talk about a monumental screwing. That money is sorely needed to just keep my nostrils above water, and this effing government of change is making me pay them to give me back the money I already paid them to take. I am really in a pickle, yet they seem to forget people like me, you know, the hard working taxpayer. Perhaps if I registered as a democrat, and joined ACORN I would have a chance to survive. I feel utterly used.

    • JohnMG

      I’m still trying to get my head around having to claim a tax refund check on the subsequent year’s returns as income.

      I mean, if you withheld taxes on income, and you’ve withheld more than you owe, and you calculate the amount owed on your total earnings, and you’re entitled to a refund, shouldn’t that refund even the scale? Put another way, wasn’t the refund amount included in total earnings for the purpose of calculating taxes owed?

      Every time I ask about this, I get a bunch of mumbo-jumbo for an answer. Even the tax people can’t agree.

    • proreason

      John, a) you don’t owe federal taxes on federal tax refunds. b) if you did not deduct state or local income taxes on your federal return, you don’t owe federal taxes on those refunds either.

      So, you only owe federal taxes on refunds of state or local income taxes if you previously claimed them as a federal tax deduction. It makes sense that you would owe new tax if you get a refund, because you took a prior deduction for the refunded amount.

      Of course, you should be VERY careful with this, because it’s SO easy to forget this obscure portion of the tax code.

    • JohnMG

      Thanks, PR. I’ll have to dig out my stuff to check out what you’ve said. Of course, if I was Geitner or Daschel I’d just offer my mea culpa’s and move on, right?

    • proreason

      John, see the explanation for 1040, line 10, booklet page 22. It’s quite clear.

      If you call the IRS, you are likely to get an affirmatiave action employee. It’s like throwing darts with a broken arm. Better to study up yourself.

  5. wardmama4

    We The People are rising up (finally):

    http://www.nostimulus.com

    Make your values, ideas, & concerns be heard in the Senate before this mess gets any further.

    The ‘support’ is dropping (10 points w/Independants over the weekend) – let’s join together and stop this just as We The People did with Shamnesty.

  6. Reality Bytes

    PR – So, imagine this – a dual income family that owns a manufacturing company (did I mention its union?) needs to sell 5 million dollars annually – all for 200K in salary. Beautiful ain’t it?

    I could be the RNC’s poster child but since McTaint’s face plant in November, I haven’t been pickin’ up their calls when their number comes up on caller ID.

    • JohnMG

      RB; When I tell people that my net usually runs somewhere in the neighborhood of 3% they think I’m making it up. They all believe construction businesses are rolling in the dough. That’s when I tell them how easy it is, and challenge them to grab a piece of the action. So far, no takers in a career spanning 40 years. (I’m union too.)

    • proreason

      But i’ll bet your work rules are top shelf, particularly the ones about overtime.

      And I’m sure you are looking forward to the additional opportunity to be patriotic when The Moron lifts the cap on FICA so you can pay the full 15.3% on 100% of your salaries? Here’s hoping you don’t have any employees other than yourselves making more than 100K, or you might be saying bye bye to that salacious “profit” (ps, until that day arrives, it might be to your advantage to pay most of the salary to you, and little to your wife, or vice-versa. That would minimize the FICA you jointly pay.)

      Didn’t Obamy just say there will be a time to make profits, but now’s not that time. Since he has never really had a job, managed an employee or run a business, do you think he realizes that there are millions of people like you who actually use that “profit” to buy food and pay the rent?

    • Reality Bytes

      PR & John – I forgot to mention, when an ownerm such as me, gets a salary of $200K – under the O Zone’s definition of rich, makes aforementioned menial profit, what happens? IT KICKS YOU INTO THE VERBOTEN TAX BRACKET OF “THE WEALTHY”!

      Seriously, either we elected a bunch of baffoons or lying fascists. I’d take my chances with baffoons but I’m afraid never before in our history has the latter been the case.

    • proreason

      I’m of the “lying facists” opinion, but they also minor in bufoonery.

  7. VMAN

    The republicans need to write their own bill (as I see they have started) completely separate from the Dumbocrats. Then they need to stick to their guns and not have anything to do with the Dumbos. I want to see the O hole go down in flames. From what I hear his approval ratings are already starting fall. Down and down they go, round and round they go.

  8. brad

    There will be only 1 party in the U.S.: Conservative Democrats, and Liberal Democrats, there can’t be a Republican Party.

    When a Democrat takes a Republican idea, the Democrats love it to death, and Republicans are happy, when it is reversed, the Dems go nuts with threats, and Reps. can’t get it passed. It is better to be a Conservative Dem. than any sort of Repub. This plan will go no where, and we all know it. The Dems will pay back those who voted for them, and that is that.

    If you all read Newt Gingrich’s book, “Real Change” you would know what a Republican is, and how government should work. I have no idea what a Republican is these days. Colin Powell? George Bush? Yech…




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