We Are Not Stupid! Extending Current Tax Rates Is Not A Stimulis!

From my vantage point, anyone that thinks making a decision not to raise taxes amounts to an economic stimulus is either a fool or drunk on Obama Kool-aid.

Look at the extension of the current tax rates in the following context. Lets say that the company you work for is struggling to stay afloat and everyone working there knows it. As a matter of fact there are rumors floating around that at the end of the year the company is either going to have to lay folks off, or cut everyone's base pay.

Now as a smart person you brace yourself and begin to cut back on spending as you don't really know what your future is regarding your income. Finally, at the end of the year the company announces they are not going to lay anyone off, nor cut anyone's pay. They do announce however; that there will be no raises for the next year because they believe that times will continue to be difficult. In other words your pay is staying exactly the same.

Now after hearing this news you may be relieved, you may be happy, but are going to treat the news like a raise and start spending money wildly? Do you really have any more money to spend?

The answer is no, and the obvious result of keeping the current tax rates is exactly the same. The act to maintain the current tax rates averts disaster, it does not create an economic stimulus.

At some point the income tax producing citizens of this country must turn this table around and become the leaders of the company and congress must be held in check as employees of the people, WHICH THEY ARE. Meaning that the people of this country must keep government spending in check.