The Republican’s Alternative Stimulus Plan

Have you heard about the alternative plan the Republicans are offering for an economic stimulus package? Probably not given that the Dems are refusing to allow the minority party to offer alternative legislation or even hold alternative hearings on the issues and also because the MSM is cheerleading the Dems. Republicans are not even allowed to bring in witnesses to any hearings.

Such is the change that Barack Obama has brought to Washington D.C. Make a power grab and then claim that freedom has somehow increased.

Congressional Republicans have an alternative economic stimulus package that actually might spur economic growth. The Club For Growth analyzed it and came up with the following:

President-Elect Obama’s stimulus plan and the latest stimulus proposal released by Rep. Charlie Rangel contain very few pro-growth elements, if any at all. Both bills place an overwhelming emphasis on spending programs that will siphon money out of the private sector and will add to the country’s ballooning debt, but are unlikely to stimulate real economic growth.

Instead, Congress should consider the Republican Study Committee’s plan with its emphasis on reducing America’s debt, lowering the tax burden on American families and businesses, and creating an incentive for businesses to grow and invest in the economy. The RSC’s plan does this by offering:

  • Across-the-board reduction in marginal tax rates
  • Repeal of the Alternative Minimum Tax
  • A reduction in the corporate tax rate
  • Ending the capital gains tax on inflation
  • Full and immediate expensing of business equipment
  • A one percent reduction in government spending

But the Dems will never consider this wise proposal for two reasons: 1) It is a true pro-growth policy that actually has a chance of working and 2) It puts power into the hands of the people rather than concentrating more power in the government.

You can access the complete article on-line here:

Club For Growth Applauds RSC’s Alternative Stimulus Plan
Club for Growth
January 15, 2009

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2 Responses

  1. The Republican’s proposal is vague at best. What are the costs? How do we achieve a 1% spending cut? The biggest negative about the Republican plan is that there is absolutely no job creation in it. Instead we must rely on corporations to create new jobs in response to tax cuts. Unfortunately that is probably not going to happen for months or even years. Tax cuts don’t get people back to work, jobs do. The democrats plan combines both job creation and tax cuts, which is a compromise the Republican’s should be happy with considering their previos attempt at tax cuts which only spurred corporate wealth and not individual wealth as we saw record profits from corporations but declining real wages.

    • Nothing vague about it. History has shown that tax cuts lead to an expanding economy as people then have more money to invest. It happened very quickly with John F. Kennedy, Ronald Reagan and George W. Bush. (The Bush tax cuts took a little longer to take effect because of the 9/11 attacks.)

      The current bill is a spending bill which does not encourage any investment at all which means no long term job creation. Thus, once the money in this bill dries up, the Dems will have to go back and enact another spending bill to get the jobs going again. It is an endless cycle (spending bill -> money dries up -> spending bill -> money dries up -> spending bill) and our grandchildren will have to pay for it since we do not have the money for it now.

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