Obama's Stimulus Plan

President-elect Obama meets Monday with high ranking Congressional leaders from both parties to push his stimulus plan so that it will be on his desk for signature on Inauguration Day. My understanding is that the stimulus package will cost close to $800 billion. Included are tax breaks, loans for states, and the creation of infrastructure jobs of one kind or another.

Sounds nice. Of course the question is - where the hell is money coming from? It sounds good that Obama continues to promise to lower personal income taxes. But, the reality is that to pay for any stimulus package, the money has to come from somewhere.

Unfortunately that means the USA will be going out with hat in hand in getting loans at ridiculous interest rates from foreign countries. How deep in debt do we want to be to the Chinese?

We will eventually have to pay the debt. So, if personal income taxes aren't raised, other taxes will be. Already there is talk that Federal government and State governments are planning to increase the gasoline tax by at least fifty percent. After all, people were willing to pay almost $4.00 a gallon, so if the price of gas is down they figure to raise taxes to bring the overall cost back up to $4.00 a gallon.

What about "luxury" items? In addition to tobacco, alcohol, and certain kinds of foods, where else could taxes be raised?

Have you ever looked at your phone bill and realized you are paying a luxury tax for using the phone? When telephones were initially used, they were considered a luxury item for the well to do and were taxed. Even after the phone became part of everyday life for everyone, the luxury tax remained. Don't be surprised to see that tax raised, along with taxes on any variety of electronic equipment.

Other places taxes could be increased are on automobiles - again at both federal and state levels -, travel - air, rail, water -, lodging and dining.

Before we get all excited about "tax cuts" let's find out just where the taxes are going to be cut and where they are going to be increased.

President-elect Obama needs a plan to raise $800 billion for his stimulus. Let's ask for some straight answers. Let's not be faked out by a lot of smoke and mirrors.

Its our future and our money - let's get the facts.

Its Common Sense!