Real Economic Stimulation

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For the most part I try to focus my thoughts on personal finance, however, I occasionally like to let you know about other things that I find interesting. Today I came across an article written by Erik Erickson over at Redstate.com that talks about yet another idea for helping to stimulate the economy. However, this plan is one that I can really support. The idea is presented by Rep. Louie Gohmert (R-TX), a member of the Republican Study Committee. His idea is to give every taxpayer a two month holiday from paying taxes, instead of spending the remaining $350 Billion of the original $700 Billion bail out.

Gohmert’s tax holiday plan is elegant in its simplicity: every American taxpayer would pay no federal income or FICA taxes for the first two months of 2009. For the typical American family — earning about $50,000 a year — that would mean they would keep about $2000 that would otherwise be paid to the government.

Gohmert’s plan doesn’t pay for Wall Street bonuses or let banks use bailout money to buy other banks or pay dividends. It doesn’t rely on bureaucrats to pay money out to the right people at the right time or try to stimulate the economy with token payments to people who don’t pay taxes.

I don’t think this will get much traction because it is too simple and makes too much sense. Plus it doesn’t allow the politicians to show us how smart they are and how much we need them to save us. If you think the idea is one that is worth supporting, sign the petition and you will receive more information on how to contact your representatives and let them know you support the Gohmert plan.