Paul L. Caron

Friday, December 5, 2008

Gingrich Backs Two-Month Tax Holiday to Replace Further Wall Street Bailout

Stop Income Tax For Two Months, by Newt Gingrich:

Rep. Louie Gohmert (R.-Tex.) has proposed a very important tax-cut alternative to the Pelosi-Paulson big-government bailout plan. Where the Pelosi-Paulson plan takes the taxpayers’ money and puts it under the government’s thumb so that predatory politicians and micromanaging bureaucrats have more and more control over the American economy, Congressman Gohmert’s plan puts the money back into the pockets of the American people and allows them to choose. ...

For the $350 billion second bailout installment Treasury Secretary Henry Paulson is going to request, every American taxpayer could have a two-month tax holiday from both income tax and the Social Security-Medicare (FICA) tax. That means that for all of January and all of February you would pay no federal income tax and no FICA tax, which -- for most Americans -- amounts to about 33% of your gross income.

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The comment about unemployed people not getting the money is short sided. The reason for the tax holiday is to get people back to work. So that unemployed person may now get job sooner because the economy is better. I think finding a job is more important than a tax holiday to these folks. Also a side effect of the tax holiday is that more people will realize how much uncle sam is taking from them every month. I think this will cause government to have lower tax because of the outrage. Lower taxes mean more money for the economy

Posted by: Braven36 | Dec 8, 2008 9:47:35 AM

OK, but I wouldn't spend it. I'd pay off some credit cards and put the rest in a rainy day account at the bank, invest in gold or put cash under my mattress.

Posted by: Paul A'Barge | Dec 6, 2008 3:58:36 PM

" for most Americans -- amounts to about 33% of your gross income."

Which means that your take-home pay RISES by 50%!!

The only problem with the plan is that unemployed people make nothing, so will get nothing, other than hoping that spending by the employed reaches them.

I think an even better plan would be to allow income averaging for taxes. That makes sure that only people with a sudden drop in income benefit, and people who do not lose their jobs are not the ones getting a free-bee.

Income averaging is also a MUST for people who own small-businesses, where their income can fluctuate greatly.

Posted by: GK | Dec 6, 2008 10:53:48 AM

A tax holiday is a great idea. Won't happen. Govt must control everything according to Democrats and many Republicans. People must be dependent, not independent. Auto bailout coming next, after end of kabuki game pretending to be tough on automakers. Saving the unions is OK as this fosters more govt dependence. In a few years we will have lots of new bridges with little traffic. Eventually everyone will be working but there will be shortages of most goods. Welcome to the New Socialist Economy of universal deprivation and social justice.

Posted by: Meremortal | Dec 6, 2008 10:40:36 AM

Simple, and smart, and, about time!

Get it out of the hands of these revenue-addicted fatheads!

Faster, please!

Posted by: ALEXISTAN | Dec 6, 2008 7:46:43 AM

It cannot happen.

Once you give people the experience of what it is like to keep all of their money, they will be forever changed and will never look upon Washington again as the city of hope but rather a Gotham that takes from their labor and squanders it thoughtlessly.

Politicians cannot afford to lose that measure of control over the electorate.

Posted by: Jonathan W. | Dec 6, 2008 6:57:13 AM

That idea is so unfair. Tax cuts for the rich? And big corporations?

And besides it will only reward the successful.

Don't failures deserve to be rewarded too? In fact shouldn't failures get more rewards? Why should GM executives be the only failures with big rewards?

Posted by: M. Simon | Dec 6, 2008 6:49:55 AM

The idea originates via Gingrich, the legislation originates via Gohmert.

Posted by: rockdalian | Dec 6, 2008 6:38:18 AM

Is that Gingrich or Gohmert making the proposal?

Posted by: Koblog | Dec 6, 2008 5:40:22 AM