Reply #10: The tax cuts were part of the Obama Campaign's offering to voters..... [View All]

[FrenchieCat]

and if he didn't offer them, he'd be criticized for that fact.

The point is that spending money in two directions, one which is tax cuts for middle and low wage earners in a gradual way (by reducing the income tax table and providing EIC increases that can be given to employees in their paychecks up front) that shows up in worker's paychecks is a far cry from a Tax rebate...which is a lump sum that can be spent or saved. The way that the tax cuts are being approached, will provide money that folks that need it will see right away, but not enough to save....but enough to spend.

The fact that tax cut offering will provide cover for the GOP to vote for the entire stimulus package without an aim at slowing it down is what is needed.....as the stimulus must get into the economy right away to fight off deflation.

See Krugman's column on the fact that in this case, haste does not make waste. http://www.nytimes.com/2009/01/05/opinion/05krugman.html?_r=1

Offering the GOP a package that they can't refuse (as there would be hell to pay with constituents) is a wise approach, especially if the package will do what was intended all along.