Friday, January 25, 2008

Someone Please Explain This to Me

Someone would have to be living in a hole to not know that Big Shitpile is really messing up the economy right now, and will for some time. While I'm not surprised that the government is getting involved, would someone please tell me why we're giving people advances on their tax returns? (At least, I assume that's how things are getting paid for, as that's how the "tax refund" was handled the last time around.) This whole economic crisis is, to my understanding, the result of the uncertainty over which large financial institutions are holding what large pieces of bad mortgage loans, accompanied by the necessary fall of ridiculously high real estate valuations propped up by those bad loans. While this sucks for a lot of people, average Joe either isn't effected or is so deep in shit that $600 is not going to go very far. So why are we bothering having this be part of the stimulus?

UPDATE: Jonathan of Analog Periphery expresses similar sentiments and does so while being coherent and organized.


Jonathan said...

it keeps people from looking at the real problems.

Gamera said...

Yah, I don't get it either.

rknil said...

There's another troublesome aspect to this plan.

Businesses that make big capital expenditures would be able to take A LOT of depreciation on their books right off the bat. Some states already have distanced themselves from the current policies, and they'll run even faster from the new ones. They can't afford to lose that much tax revenue.

All this means is the tax code will get more complicated.