Tax rebate cynicism

Re-Election Stimulus

Excerpts:

As for the economics, oh my. The most this temporary tax cut will do is goose consumer spending for a quarter or two this year. Since the IRS is saying it won't be able to cut the checks until midyear, any recession might well be over, if it even begins. The money to pay for these rebates has to come from somewhere, which means from other taxpayers or from bondholders who lend money to the Treasury. Either way, Congress and the White House are taking money from someone to pass out to someone else. The income effects are thus a wash, as the economists put it, while the substitution effects (higher taxes on the best income producers to finance consumption among the lowest) are negative.

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Americans lucky enough to qualify should enjoy this little windfall while they can, because the politicians are already planning to take it all back next year. After they're re-elected.

Comment: I'll take it if I get it, but my children and grandchildren will pay for it!