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Washington Policy Laid Bare
Many of us have feared this for many years.
And here it is.
It’s in a letter from the Congressional Budget Office to Wyoming Senator Judd Gregg, and it makes clear that the federal government plans to take from the working (actually, the grandchildren of the working, since we’re talking deficit spending) and give to the “underemployed.”
A dollar’s worth of a temporary tax cut would have a smaller effect on GDP than a dollar’s worth of direct purchases or transfers, because a significant share of the tax cut would probably be saved… However, the predominantly lower-income households that spend all of their income and would like to borrow funds to spend more if they could [known as 'liquidity constrained' households] probably spend a large share of temporary boosts to income,”
Here’s the complete letter.
