Bailout Plan--Probably a dumb question but...

[jenk99]

Where will the700 Billion Dollars come from? Are taxes going to go up to pay for it or is the money already there to pull from and they will just cut spending on other programs.

If this gets approved, how will it work?

 

[CowboyCO]

China.

Cut spending????

Obama has $800 Billion in NEW spending he wants to implement, and with a dem controlled congress and senate, he will-- pushing the yearly budget shortfall from $350 billion last year (roughly) to over 1.5 TRILLION next year. At least mcCain has a record of controlling spending as at least he SAYS he will veto earmarks andbloated budgets

 

[mefordis]

China.

Cut spending????

Obama has $800 Billion in NEW spending he wants to implement, and with a dem controlled congress and senate, he will-- pushing the yearly budget shortfall from $350 billion last year (roughly) to over 1.5 TRILLION next year. At least mcCain has a record of controlling spending as at least he SAYS he will veto earmarks andbloated budgets

No, the spending will come from tax increases on those making over 250 million and corporations.

 

[Tink888]

No, the spending will come from tax increases on those making over 250 million and corporations.

To clarify, it's 250 thousand and corporations.

 

[Tanuki]

Isn't this Bush and Paulson asking for this money - how did this become Obama's plan? If anything it prevents any further investment in infrastructure in the United States of America for many years to come.

The same Bush who could say to children that there would be no increase in spending for health care for kids with medical problems because this would be "socialism" is now perfectly ready to request $700 billion so people with bad credit can continue to get loans? So that the millionaires that took the risks of these investments on Wall Street won't have to fly coach?

Why is it that if you or I sign some morgage debt that WE don't understand and it becomes an obligation we can't pay it is our poor judgement - but if some college educated financier on Wall Street makes a bad bet in the derivatives market NOW it is the taxpayer's problem?

Personally, I think we should just wait and see. Bush used exactly the same arguement for invading Iraq. I don't trust anything he says.

 

[RitaE]

That is actually about the smartest question anybody could ask about this whole thing.

According to the plan as it currently stands, a future President has the responsibility of submitting some sort of "Revenue Plan" to a future Congress for them to pass. Now if you think about that harder you might ask yourself, exactly how does a government increase Revenue??? (hint it begins with a T, ends with an S and the middles letters are AX and E)

For all intents and purposes, most likely the National Debt will increase and then we'll spend a couple years fighting over just who should have to pay more in taxes.

 

[CowboyCO]

No, the spending will come from tax increases on those making over 250 million and corporations.

If corporations are paying more taxes, they will cut jobs or pay less (in the form of less raises and phasing out senior employees for junior employees.) You increase tax revenues in the long term by keeping taxes low on those responsible for growing the economy. Raise taxes, you get a bump in revenue for a year or two and then it decreases (or the rate that i was increasing decreases). You can't tax your way out of an economic downturn. Just ask JFK.

 

[bellebud]

totally OT... cowboyCO, what is that pic in your sig? it's absolutely gorgeous! just wondering if you took it somewhere you vacationed?