Tax cuts or tax credits?

Well, I guess the Comrade is going to give a speech some time this week on economic policy. I mean, it's pretty hard to avoid the realization that the dems are sunk due to the Comrade's existing economic policies. Anyway, he's probably hoping that if he tosses the public a few crumbs and smiles big nto the camera, we'll all be charmed into dopiness and vote for the dems.

Apparently no one knows yet what the Comrade is going to suggest. However, watched Tim Kaine, who's head of the DNC, on Fox Sunday, and maybe gleaned a few ideas.

One of the biggest fights right now is over the Bush Tax Cuts. That is, George W got us a couple tax cuts while he was in office, and these are due to expire at the end of this year. Congress will have to vote to extend those tax cuts or they'll just go away. Net result:  we'll all be paying higher income taxes.

Nancy Pelosi, in typical style, was asked about this impending tax increase. She explained in a very comical and absolutely brainless way that failing to extend the tax cuts wouldn't be a "tax increase." Don't be silly! She went on for some minutes, waving her hands around, about how not extending the cuts would just take off something that was taken off.... wandering aimlessly into the weeds and making you wonder what the hell she was smoking. (This is on YouTube and worth watching for a laugh.)

Anyway, according to Tim Kaine, the Bush Tax Cuts should go away.  But wait! They'll be replaced by "carefully targeted tax credits" that will be designed to stimulate small business.

I can't wait to see what the Comrade and the merry marxists believe will help stimulate small business. That should be funny. Maybe more accurate versions of TurboTax?

Be that as it may, I'd like to take this opportunity to explain the difference between tax cuts and tax credits.

Suppose you get a tax cut of 10%. Whoopee!! That's 10% more of your own money that you can spend any way you want. Same for businesses. You could use that to pay off your credit cards quicker, buy that new appliance, fix the roof. Businesses can, maybe, hire another employee, upgrade their office or production equipment, get the parking lot blacktopped and striped, buy a new delivery vehicle, etc.

But, by contrast, suppose you get a tax credit. Well, a credit on what? Very likely, the tax credit will be offered to those who buy, or install, or invest in something "green." After all, GE is going broke and the Chicago Carbon Offset ExScam could use a shot in the arm -- all those friends of the Comrade and Al Gore, you know.  They aren't rich enough yet and can't bear the thought of having to get a real job. We don't have enough windfarms trashing the horizon. So try planting a tree in the lobby in the interests of creating more oxygen to supplment your HVAC and maybe that will qualify.

OR, the tax credit might be for employing an illegal alien. Hey, it could happen! Think of the undocumented as "democrat voters." The dems have been working diligently toward that goal.

Or, the tax credit might be for retraining a laid-off UAW member;

Or, the tax credit might be available only to unionized companies;

Or, for contributing to George Soros's Tides Foundation or the heirs of Acorn.

And you can bet your booty that having gotten a whiff of "carefully targeted tax credit," right now the halls of congress are clogged with lobbyists climbing over each other to secure a credit for their industry. Lotsa pay-offs are embedded in this kind of system. I suppose Chris Dudd could use some more cash before he retires.

The key point here is that the main difference between a tax cut and a tax credit is CONTROL.

The government can't control what a private citizen or a small or large business does with the additional money they retain from a tax cut.

On the other hand -- YOU DON'T GET A TAX CREDIT UNTIL YOU CONFORM TO THE GOVERNMENT'S REQUIREMENTS.

See??

So, take your pick. What's going to help you, as an individual, more? What's going to jumpstart the economy? What's going to boost FREE enterprise and support America as America?

On the other hand, what's going to give the Comrade and the merry marxists tighter control over the economy, more opportunities for graft and corruption, and allow some soul-less bureaucrat to conjure up a bunch more suffocating regulations?

This isn't rocket science.

Save the republic.