Re: Obama's $300 Billion Tax Cut: Lots of Buck, Not Much Bang
by Lawrence Kramer
Why doesn't the tax-based stimulus tackle the problem head-on by restoring the sales tax deduction for big ticket items? The collapse of the investment markets has set the paradox of thrift in motion. Everyone wants to rebuild their savings; they don't need a tax incentive to do that. What they need is a tax incentive to spend. The sales tax deduction would help. And raising the $1,000,000 limit on mortgages interest deductions would take some pressure off the top of the real estate pyramid, allowing for some upward drift to create some equity.
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