The economic stimulus plan could be better referred to as the Democrat's pork dinner. The plan has little to do with "infrastructure" improvements as originally billed, which was suppose to put people to work and stimulate the economy, and more to do about the Democrat's version of pork filled earmarks.
The pork plan will do little to rein in spending at state and local levels in order to solve budget problems. To the contrary it will close the current budget gaps and push real solutions that involve reducing spending further out in years and exacerbate the problem.
Nearly $100 billion would result from increasing the “Medicaid matching rate,” a technique for reducing states’ Medicaid costs to free up state money for spending on anything governors and state legislators want.
Tax credits for investment in homes or business would have been more effective in order to persuade people to spend and create some real economic activity.
The plan is to give a tax cut of $500 a year for two years to each employed person. That’s not a good way to increase consumer spending. Experience shows that the money from such temporary, lump-sum tax cuts is largely saved or used to pay down debt. Only about 15 percent of last year’s tax rebates led to additional spending.
John McHugh and the rest of his colleagues did the right thing in voting NO on this pet project spending plan, they have no reason to give the Democrats bi-partisan cover for this ill conceived plan. After the Republicans soundly voted NO on this plan, the Democrats threatened to remove the tax cuts, which would surely be met with opposition from the public.
Here is a selection of critics on the new American debt plan.
Read here, here, and public support for this mess is waning and rightfully so, read here