RightWave

So, scuttlebutt is that the next Obama-led “economic stimulus package” to come out of Congress may well include another increase in the minimum wage.

Really?

As if the first one wasn’t bad enough.  Let’s think this one through, shall we?

So, the economy’s in a downturn.  Employers are already making labor cuts to save costs and keep businesses afloat (and costs down for the consumers).

The government’s response?  Make labor more expensive.

Well, duh.  Cuz, you know, that makes sense.

I’m no conspiracy theorist, but if you follow the path of results down from this plan, you end up with more government payouts being funded by fewer actual taxpayers (likely paying much higher percentages of their incomes to the government).  That’s not sustainable!  Is the goal to have every industry crawling to the government for a bailout?

Anyone else thing this is sounding awfully Randian in how it’s playing out?  I’m certainly no die-hard objectivist, but come on.  I know the lefty’s are bleeding hearts, but surely they haven’t lost all capacity to process logical outcomes?

Oh, well, maybe so.

All I can say, folks, is gird up.  Get ready for the fight.  Even though things look bleak, it’s important that our side not give up – that we keep fighting and making our case to the American people and make it in a way that’s personal and folks can relate to.  If we slink away and resign ourselves to the fact that everything’s going to hell in a handbasket, well, it will.  And no one will be there to pick up the pieces on the other side.

To quote the great Winston Churchill:

“Never give in. Never give in. Never, never, never, never–in nothing, great or small, large or petty–never give in, except to convictions of honor and good sense. Never yield to force. Never yield to the apparently overwhelming might of the enemy.”

Or, if you prefer:

Admittedly, I am unsure about this whole bailout mess – though I’ve appreciated the commentary of many other bloggers and “thinkers” out there.

In particular, check out Peter’s take at Progressively Right.  Also E!! links to a letter by Americans for Tax Reform’s Grover Norquist with another interesting thought.

Of course, do these thoughts total a plan?  I think there are good components.  Perhaps there’s not one “solution” that both helps and stays (close to) true to free-market beliefs.

It’ll be interesting to see how this plays out.

If you come across other interesting ideas/thoughts I’d love to hear about them.

UPDATE: Forgot to include the Club for Growth’s take.  They make an interesting point.

UPDATE II: E!! points out that I missed her recount of Newt’s plan.  Seems feasible and reasonable.  Check it out.

This shocking headline and opening courtesy of the venerable Associated Press:

McCain, Obama offer different visions on taxes
Make more than $250,000 a year? Watch out. Barack Obama wants to raise your income taxes. Social Security taxes, too.

Run a corporation? Lucky you. John McCain wants to cut your business taxes.

Those positions illustrate pieces of two vastly different approaches to the economy, an issue at the forefront of voters’ minds given that the country is teetering on the brink of – if not already in – a recession as gas prices soar and layoffs rise amid a credit crisis and a housing slump.

Obama, the Democrat, seemingly has a traditional liberal outlook of taxing the rich more while having the government help people of more modest means through tax breaks. McCain, the Republican, advocates a classic conservative vision of cutting taxes – many geared toward businesses – to promote competition within a free-market system.

I mean, wow.  Really.  Republicans and Democrats disagree on taxes?   I’m shocked.  Although, I guess, to be fair, this was in question in this election cycle. 

However, this is illustrative of one important point.  Senator McCain should keep this as the story.  He should stop talking about global warming or whatever other “straight talk” he’d like to provide us for the day.  He should keep talking about tax cuts and spending restraint.  He should talk about the expansive growth of government and how to stop it.  At least, I suppose, if he’d like conservatives to get at all excited about him this year.  Guess we’ll see…

So, the IRS is going to give you a $600 check (or $1,200 if you’re married) in the form of a “tax rebate.”  Sounds great, right?

 Well, never mind the calculation you did in your head if you’re like me of how much it cost to mail out the notices letting you know you’re getting a refund.

 And, never mind the fact that a long-term tax cut would have a much more significant effect on the strength of the economy.  Or even put aside the fact that this is really just an advance on your 2008 tax return not found money.

What really is perplexing is this article:  Tax Rebates Could Be Ticket to Vacation

And mostly this passage:

Morse cites a November study by three economists from the Federal Reserve Bank, the University of Nevada-Reno and the University of Pennsylvania’s Wharton School examining consumer habits from a similar though smaller rebate in 2001. The researchers tracked activity of 75,000 credit card accounts.

The study found that many consumers used the rebates to pay down credit card debt, just as pre-rebate surveys suggested they would do. But three to nine months later, they used their newly freed-up credit to buy even more. On average, they spent 40 percent more than the original amount of their rebate.

…cuz that’s what we need. MORE credit card debt.  I know it sounds like it’s good for the economy for people to spend more, but isn’t this a pretty shaky foundation?

(by the way, I’ve been to Dollywood in Pigeon Forge, and they don’t need tax rebates to spur their attendance!  Didn’t you see Dolly on American Idol last week?)

Why don’t we just do the right thing and continue cutting marginal tax rates.  Better for the economy, better for the reduction in the growth of government and, well, just better for taxpayers.  Oh well.  Maybe next time.