COULD A “TAX BRAKE” NOW HELP OUR FUTURE ECONOMY?

 

The senate and the new president offered to work on getting “tax brakes” for the US taxpayers. The idea is to capitalize the country and generate new jobs. These savings will put more money in our pockets that could help us get out of “the financial hole” in which we are now but, do tax payers would want these “tax brakes” if they knew they have to pay them back in the future?. We all know that we are going thru very difficult times but I bet the tax brakes that the government offers are just a loan for you and me. It is as if you were to get a credit card and pretend it was free money until you get your bill by mail. I know that the president wants to help solve the economic problem that we have but, from my personal perspective, there are some other things to consider. 

Think about this, the money has to come out of somewhere. The country is in a big deficit as it is and all they can do is getting in a bigger debt to offer incentives. If our reserve gives value to our economy we have to move the money out but money don’t just fall from the sky. As soon as the economy reactivates we need the money to go back to liquidate our debt and lower our deficit. 

We can not have a government that keeps on losing money. I would not like to see the United States comparing with emerging economies when it is supposed to be strong and solid. The variation of the dollar value in comparison with other countries’ currency is due to the fluctuation of our economy which generates other economical problems. The government has to be handled as a business for certain things. 

I think that they are coming up with a plan to reactivate the economy but have not thought about “what happens after it does?” if it does. I believe that the most likely answer is Taxes and program cuts. It would be great to hear about how the government is supposed to replace the money it will use for “tax brakes” before they are implemented. 

The best idea, I think, is to find the way to get the money without a future repercussion on taxes before implementing any changes. There has to be a long term plan before executing a short term fix. Do not think about “giving” money now and impose a tax later to replace the money that was used. Some people may think that the government prints money and it ends there but you can only allow so much before you get hit with a devaluation of the currency and a growing inflation. 

Too much money in the market may only generate inflation which will hurt us more in the long run and that is another reason why the money for “tax brakes” has to come from somewhere. We can not get in a circle trying to get ahead of our mistakes because they will always be there. It could be great to get tax brakes by eliminating unnecessary expenses on the part of the government and I mean programs that cause expenses which are not generating anything back to the economy. If the government cuts on programs that generate jobs, the “tax brakes” will do no good because it will slow the economy back again in the future. 

We would love to get some extra money in our pockets at this time, specially if you just lost your house or are unemployed but, when I hear that we are getting a “tax brake”, I would also like to hear about where the money comes from to be able to do it because I DON”T WANT TO PAY IT BACK!.

Luisrcg

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