Tuesday, August 5, 2008

Reverse Robin Hood Program

I didn't get it at first, but the $600 rebate idea is brilliant. Somebody managed to sneak an idea past the feds that actually works. Here's what I mean:

Normally, anything the government does regarding the economy is wrong, period. Every action they take makes matters worse or prolongs a bad situation - e.g., the mortgage/credit scenario.

The federal government routinely engages in massive redistribution of wealth - usually, they take money from those who earned it and give it to those who didn't. Basically, they take from producers and give to parasites. You know, the Robin Hood principle - "Take from the rich and give to the poor."

The $600 rebate is different. It is the only program that simply gives people money regardless of their producer/parasite status. You don't have to be "needy" or "disadvantaged" or any other kind of non-producer to get the money.

So, what will be the result of this sort of rebate (you didn't ask)? Producers will save the money or they will invest in something useful to grow their business or their life. Parasites will spend it frivolously on such things as booze, potato chips, rock concerts, tattoos, and illegal drugs. The result will be that money will move from the hands of parasites to the hands of producers. That's a good thing!

With that in mind, I advocate a huge increase in that program. We'll call it the Reverse Robin Hood Program. Let's give everyone $50,000 or $100,000, and watch the economy grow! Better still, give people all their money back. Or, even better, don't take money from producers in the first place. Abolish the IRS and let people keep whatever they earn.

Hmmm, I think this was tried before, during the first 150 years of a country called the USA. That country grew from nothing to the most powerful nation on earth with no income tax. Amazing, huh?

2 comments:

Anonymous said...

You need to make more money because if you did, you would know that there was a cutoff of $75K for individuals and $150K for married filing jointly.

"Phase Out: The stimulus payment –– both the basic component and the additional funds for qualifying children –– begins to phase out for individuals with adjusted gross incomes (AGI) over $75,000 and married couples who file a joint return with AGI over $150,000. The combined payment is reduced by 5 percent of the income above the AGI thresholds.

http://www.irs.gov/newsroom/article/0,,id=179181,00.html

As for the rich-poor redistribution. I would agree that there is a re-distribution, but it is taking from the poor, and giving to the rich. I'm rich enough that I am subject to the Estate Tax (top .5% of households), and I agree with Warren Buffet about the US tax policy. It is tax the working poor, no taxes on the rich.

Buffet gave a $1M challenge if someone could show that they paid lower taxes than he did.
http://www.cnbc.com/id/21708265/
Prove the challenge and then next time you'll know that what it's like to be rich, at least for a year.

Anonymous said...

Steve - I like your last comment. I agree let's terminate the IRS.

At my income level I did not receive a stimulus payment.

Take care, from a guy with the same name and similar background.

Steve Alexander