A ‘Permanent Fix’ Bailout And Why It Won’t Happen

Texas Congressman Louie Gohmert (R) has come up with an alternative to the $350 Billion economic stimulus package the Democrats are rumored to have ready for Obama to sign on January 20th. It’s pretty innovative and novel.

You get to keep what you earn.

That’s right. A two month tax holiday from FICA and income tax for everyone.

Mr. Gohmert is preparing a bill to declare the tax holiday for January and February 2009 and is also gathering support at the same time. He said he thinks the government will be able to save more home mortgages, increase employment, and boost economic growth for a lower price tag this way than with any centralized bureaucratic program.

Sounds pretty simple, right? So what’s the problem with this plan? If giving the people their own money stimulates the economy, why not just let them keep it? In fact, why not let them keep it permanently?

Well, that’s the problem. There will be a tax revolt in March 2009 once people realize just how hard they are being raked over the coals with each and every paycheck. Any politician with half a brain realizes this, and that’s why it probably won’t happen. After all, what would they do if they didn’t have all that money to spend?

Still, it wouldn’t hurt to contact your Representative and ask them to support this idea. If they don’t support it, ask them why. See if you get a straight answer.

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Comments

Great idea. Won’t happen.

@hungrymother that just made me feel way too verbose. You summed up my whole post in four words. Want to guest blog?

Another side effect of the 2 month tax holiday and the protests in March is the FairTax would get serious view. Check it out:

http://www.fairtax.org/site/PageServer?pagename=about_main

The possibility that there would be a revolt after the tax holiday is reason enough to support the idea. I don’t think people realize how much taxes hurt their standard of living. Anything that wakes people up to this would be great.

I have always wished that they did not take taxes out of every pay check. Instead, we would have to write out a check at the end of the year. People would really get to understand how much the government is stealing from them this way. This would definitely cause a revolt. It would be like throwing a frog in boiling water instead of heating it up slowly.

wow, a good idea from a politician? his teenage kid probably gave him the idea.

@Lawrence
I prefer the Fair Tax over income tax, but…it’s set up to replace the income tax and doesn’t really address the spending end (at least my understanding). I’m a big fan of Boortz, but I think he’s sold out a little on his libertarian principles by not endorsing spending cuts.

@The Frugal Libertarian
I agree…a tax revolt would be awesome! And you’re right–if people had to write a big ass check at the end of the year they’d think twice about the tax rate.

@billymac
I think it was his mistress that thought of it.

[…] really like this idea that’s being batted around Washington, but I fear Mr. Spite is right – it won’t work.  […]

[…] I really like this idea that’s being batted around Washington, but I fear Mr. Spite is right – it won’t work.  […]

No way is that gonna happen!

What kind of idea is that anyway? Why do we need this tax holiday? Not practical…

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