A Viable Alternative For Economic Stimulus

Why do anything for yourself? Why succeed? Why push yourself to make necessary changes in your life and better yourself? Your too old, who cares? Why?

The government will come to your rescue! At least that is the message being sent to everyone through this unbearable package.

Now, Senators have come together with a passable plan that could be implemented immediately called the Republican Rival Stimulus Plan.

What I like about it is and what I would like to see added:

1. That we get to keep what we earned (the government doesn't get control and then send it back to us at their leisure!).
2. They are slashing corporate taxes!
   
3. I would say that states should lose federal money if they do not use the money as designated!
   
4. I also like how the money spending ends immediately within three years! This means states will have to act immediately to put the money into the economy.
5. Oh yes, definitely balance the budget - that is a must!
6. I still would like to see them use the FairTax to force the federal government to balance the budget.
   
7. Also, use the Picken's Plan to get us off foreign oil supplies and into renewable energy.
   
8. Finally, I think we need to add tax incentives for individuals who are paying a bazillion dollars for family health care coverage.

Here is the alternative as reported by Reuters:

A group of Senate Republicans unveiled a $445 billion alternative economic stimulus plan on Tuesday, about half the cost of the $885 billion Democratic plan the U.S. Senate is considering.

Following are details of the proposal by John McCain of Arizona, John Thune of South Dakota, Richard Burr of North Carolina, Lindsey Graham of South Carolina, and Mel Martinez of Florida.

Tax Provisions:

* For one year, cut in half to 3.1 percent the payroll tax for all U.S. employees. Cost: $165 billion.

* Lower the 10 percent income tax bracket to 5 percent and the 15 percent bracket to 10 percent for one year. Cost: $60 billion.

* Slash the corporate tax rate to 25 percent from 35 percent for a year. For small businesses filing as individuals, their tax bracket would also go down to 25 percent from 35 percent. Cost: $50 billion.

* Offer in 2009 to homebuyers a tax credit of $15,000 or 10 percent of the purchase price, whichever is less. Cost: $20.4 billion.

Spending Provisions:

* Extend unemployment insurance benefits and food stamps through 2009 and eliminate taxes on unemployment benefits for the same time period. Cost: $48.15 billion.

* Use federal money to discourage mortgage servicers and lenders from executing home foreclosures. Cost: $11 billion.

* Grants to states to build and repair roads and bridges. $65 billion.

* Improve, repair and modernize Defense Department facilities. Order and/or repair equipment, vehicles, material and ammunition for combat troops. $17 billion.

* Grants to states to make investments in public transportation systems. $3 billion.

* Grants for airports to build new runways, install runway safety equipment and other infrastructure projects. Cost: $1.1 billion.

Other provisions:

* All spending programs would end three years after the legislation became law.

* To move toward reducing the budget deficit, after two consecutive quarters of more than 2 percent of inflation-adjusted gross domestic product growth, spending provisions from the stimulus package that has not been spent or obligated would be canceled. Additionally, there would be a 2 percent across-the-board spending reduction to help balance the budget by 2015.

* Establish commissions to review Social Security, Medicare and Medicaid.

(Reuters)

$445 Billion is still hard to swallow but not as hard as $900 Billion. At least these ideas have validity.