thoughtnot

I’m starting to become frustrated with all this government stimulus talk on both the State and Federal levels. It seems to me that these packages “stimulate” everything but me. I’ll be honest… it’s not that I’m in dire straits right now. But times are harder right now for everyone. Things cost more money, and it seems everyone and his cousin has a finger in my paycheck for Federal taxes, State taxes, county taxes, city fees that are a tax even though they are called a fee… etc. The dollar certainly doesn’t go as far today as it did even 5 years ago. Heck, even the price of a stamp is going up (again!) by 2 cents in May.

So why am I annoyed by the stimulus packages? Because I keep reading about things that will have little or no bearing upon my current status. For example:

• Indiana’s stimulus gives “education grants to unemployed Hoosiers”. Well, I took out personal loans, got my education, and paid them back on my own dime. If these folks want an education, why shouldn’t they do the same?
• The Senate bill (Federal) would make the first $2,400 in unemployment benefits tax-free. Why not the first $2,400 in EMPLOYMENT benefits? Just because I’m not unemployed does not mean things aren’t tight. We ALL need a break right now.
• The Senate bill wants to provide a $15,000 tax break to FIRST-TIME homebuyers. But what about those of us who purchased our homes and have been faithfully making payments? Aren’t we the ones who have been keeping things afloat while many of those who bought in over their heads have languised on interest-only loans?
• The Senate wants to give tax credits to folks who purchase (new) American-made cars. So if a Honda is made in Indiana, does that qualify it as “American made”? Or would it only apply to cars made by the “Big 3″? A seperate amendment would let those who buy a car (assumedly any brand) in 2009 deduct the sales tax and loan interest payments… but who can afford a car right now?

My point is this: many of the elements of these various stimulus packages go toward assisting low-income, unemployed, or non-educated individuals. They do little or nothing for those of us who (through a combination of fortune and skill) have remained employed, have faithfully paid our mortgages and other debt, and who just need a “boost”. It is we who have helped keep the economy afloat during this period. There is a reason I did not hinge my hopes for the future on my ability to put seats in Ford Explorers for the next 20 years. But it’s not easy keeping up with the risings costs of everything around you, from utilities on down to groceries. Being employed does not mean there is not an economic “squeeze” in progress.

What I’d like to see in the stimulus packages are tax breaks for home improvements (such as finishing a basement, etc.), additional tax breaks for those with children, educational tax breaks for children (we paid $1200 for all-day kindergarten, and currently pay for non-mandatory pre-school), a tax break or non-interest accumulating payment holiday for those who have maintained their mortgages for at least 2 years, or educational grants for ANYONE who wants/needs one. Another idea would be to allow people to divert money pre-tax into debt repayment. So if you have a big credit card or home equity loan, you could pay those down (with a fixed/claimed amount) by extracting the money from your paycheck on a pre-tax basis. By allowing this to be done pre-tax, that frees up actual income that would ordinarily be taxed out.

Those are just a few ideas, but I personally believe they would do more to benefit EVERYONE. It’s not that I’m against helping low-income or unemployed folks… I’m not. I just feel that those who ARE working and are feeling a squeeze should get some help, too. In reality, it’s a bit hard to find what is exactly in these packages. However, these ideas have to be better than some I’ve read that sound like pure pork-barrell spending that is so typical of Congress.