SPENDING TO SAVE

As a last ditch attempt to save their majority, Democrats in congress are now contemplating some tax credits for businesses.  Great idea if you look at the attempt with both eyes closed.

The credits will only offset the tax increases that have recently been imposed, or are proposed for businesses.  And only some businesses will get the credits, those doing research and development under government grants, for example.  How cool is this!  They won’t have to pay taxes on the taxes they’re spending on research and development. This is supposed to stimulate the economy.  It may add some temporary numbers to spending, but that spending is not sustainable and will end with the grant money.

Follow the bouncing ball here, if you can.  Congress is going to borrow more money from the American people, adding another $100 billion to the national deficit which will be transferred to the debt at the end of the fiscal year.  I realize that they say that will not happen, but what that they have said has been true?  When it came to offsetting some of the costs of Obamacare, they took $529 billion from Medicare.  They took from a government run health care program to pay for a government run health care program and claimed it was a savings.  Even the CBO is now saying that there will be no savings in health care.  They are projecting an additional budget shortfall in spite of increased costs to the citizens for the program.

Before that $100 billion spending plan is set into play, there will be a $50 billion allocation to transportation infrastructure.  To help pay for the expenditure, the proposal will grab some money from the transportation supporting industries like oil and gas companies.  Can you see your costs rising?  It will now cost you more to get to and from your job that is paying less than it did because you are working fewer hours.  But then that was a campaign promise that no one chose to hear: “Under my Cap and Trade plan your energy costs will necessarily skyrocket”.  T minus 10…9…8…

Labor Secretary Hilda Solis said the plan Obama was to unveil Monday would “put construction workers, welders, electricians back to work … folks that have been unemployed for a long time.”  What she fails to say is that once the money runs out, they will again be unemployed just like the census workers when that project ended.  However, it may make the unemployment numbers look a bit better through the elections of 2012.  Could that be a plan?

What they tell us they are doing is one thing.  Reality is something quite different.  You cannot spend your way out of debt!  Life doesn’t work that way.  When you’re broke, you can only spend your way into debt, or greater debt.  Spending by the government does not, never did and never will create prosperity for anyone except those directly associated with the government.  It is a burden on everyone else.

Hey, go buy that new car today before the price goes up to offset the additional manufacturing cost.  But get a fuel efficient model because oil and gas prices are doomed to rise and you’ll have to save as much as possible to make the payments.  Your job may be the next one that’s cut.

Tags: Government, Spending