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Obama's stimulus plan spells bad news for taxpayers
Matt Stevens
Issue date: 2/13/09 Section: Commentary
By now, most Americans are familiar with the debate regarding the economic stimulus plan championed by President Obama. It now appears that a stimulus package supported by the president and his Democratic allies will soon be approved by both houses of Congress and signed into law by the president, according to CNN.
President Obama and his supporters argue that this stimulus package will give the ailing economy a much needed shot in the arm. They argue that when money is being spent, the economy is better off and job growth will soon resume.
The Republicans have united against this package. According to The Washington Times, the GOP contends that this plan will be slow to achieve results on the economic front and that tax cuts need to play a bigger role in any recovery plan.
Both parties raise excellent points in their reasons for being supportive or critical of the stimulus proposal. However, I believe that there are other important questions yet to be asked: Mr. President, since, in your inaugural address, you called for the government "to spend wisely" and "reform bad habits" with regard to the people's money, how do you plan to spend so much money without worsening the national debt? And if you decided to raise taxes to pay for this plan, wouldn't the tax increases lessen the impact of the stimulus?
As many Americans know, the federal government's budget deficit has hit a record high in recent years. One factor contributing to this astronomical debt was President George W. Bush's unwillingness to veto many spending bills during his eight-year tenure. Now, reports CNN, President Obama and the Democrats have unveiled a $789 billion economic stimulus plan, including highlights such as $90 billion of increased Medicaid match to states and $150 billion for infrastructure improvements.
These are wonderful reasons to spend government money. All Americans would like to see better bridges and roads and lower-income citizens receiving help for health-related expenses. However, as the president himself has acknowledged, responsible budgeting must be a priority. If the government is going to spend $789 billion, an already record federal deficit will only balloon even more. If such a plan is to become reality, the only way that it can be enacted without worsening the deficit would be to institute massive tax increases. However, higher taxes would only place another burden on an already struggling citizenry.
President Obama and his supporters argue that this stimulus package will give the ailing economy a much needed shot in the arm. They argue that when money is being spent, the economy is better off and job growth will soon resume.
The Republicans have united against this package. According to The Washington Times, the GOP contends that this plan will be slow to achieve results on the economic front and that tax cuts need to play a bigger role in any recovery plan.
Both parties raise excellent points in their reasons for being supportive or critical of the stimulus proposal. However, I believe that there are other important questions yet to be asked: Mr. President, since, in your inaugural address, you called for the government "to spend wisely" and "reform bad habits" with regard to the people's money, how do you plan to spend so much money without worsening the national debt? And if you decided to raise taxes to pay for this plan, wouldn't the tax increases lessen the impact of the stimulus?
As many Americans know, the federal government's budget deficit has hit a record high in recent years. One factor contributing to this astronomical debt was President George W. Bush's unwillingness to veto many spending bills during his eight-year tenure. Now, reports CNN, President Obama and the Democrats have unveiled a $789 billion economic stimulus plan, including highlights such as $90 billion of increased Medicaid match to states and $150 billion for infrastructure improvements.
These are wonderful reasons to spend government money. All Americans would like to see better bridges and roads and lower-income citizens receiving help for health-related expenses. However, as the president himself has acknowledged, responsible budgeting must be a priority. If the government is going to spend $789 billion, an already record federal deficit will only balloon even more. If such a plan is to become reality, the only way that it can be enacted without worsening the deficit would be to institute massive tax increases. However, higher taxes would only place another burden on an already struggling citizenry.
Viewing Comments 1 - 2 of 2
Kim O'Brien
posted 2/14/09 @ 2:15 AM EST
The root cause of the economic crisis is capitalism itself.
The reason it is called a crisis is that many large corporations and banks have seen their value plumet. (Continued…)
Wes
posted 2/18/09 @ 12:01 AM EST
Capitalism isn't the problem. Big Government interfered with basic things such as supply and demand. Bill Clinton wanted every person in America to have a house whether they could afford it or not, and thus the Fannie/Freddie disaster was created. (Continued…)
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