What would you do with a pay raise

sounds like you would stimulate the economy

I suspect that most people aren't eyeing luxury items so much as they are wanting to catch up on bills and dig themselves out of debt.

It wouldn't take long for most to catch up with the kind of stimulus discussed in the original post. If you can't catch up with that kind of increase how are you still getting by in the first place? The people in the worst situations are in any shape to stimulate the economy anyhow, they are relying on those who can. The biggest stimulation to the economy will come from those who are a little behind and can only make ends meet, without the things they would like. The people who will be able to buy new houses and automobiles will be the most beneficial at stimulating our economy. If you simply save your money and keep paying bills and nothing else, how does that help anyone else?

The goal of the bailout was supposed to be stopping foreclosures. Catching up on mortgage payments would do that. America has a negative savings rate for the first time in history. Retirement savings is generally in some sort of stock mutual fund. That means that the money is being invested in more stable parts of the market that can boost the economy. Grocery shopping helps farmers and grocers. I figure anything short of putting the cash under your mattress will help the economy. Even if you put it in the bank the bank is investing in the market.

Ain't that the truth! I was telling the roomie that the big 3 made it thru the depression, they just need to tighten their belts again. "it was different then" she said - no, but its not worth trying to explain to a liberal why it isn't... sure, they hire a lot more people now then then, but really it isn't sure, closing plants hurt the employees, but those big wigs need to cut back their pay/lifestyle at the same time.

Your not alone. The bailout of these corperations has resulted in protests and riots around the country. People are demanding to know when they will be bailed out. The government not only has no responsibility to bail out companies, it has no right to do so. it certainly has no right to take the money of those who are suffering from the economic problems and give it to the people who put the economy in that position. With the average wage in the $25 range, the wage of other auto workers in the $40 range and the wage of the BIG 3/UAW workers in the $75 range, how many people are truly willing to hand over their money to bail out workers making 2-3 times what they do. Before I got hurt I was a trucker. One of the best paying industries inthe country. I wouldn't want my check taxed to pay for them and they wouldn't want their checks taxed to keep me afloat. People don't mind charity, they just believe they have the individual right to decide who they give to rather than having someone take their money and spread it around in a way the taxed person would never allow if he had control.

I think the best part of a tax holiday is that it would show the truth. Lowering taxes increases the economy and that increases government revenues. Strangely enough, Kennedy, Nixon, Reagan and GW Bush all increased government revenues by lowering taxes and improving the economy. The mortgage crises was created by a group that forced banks to loan money to those with bad credit under threat of investigations and regulatory problems. The issue was pushed by Fannie, Freddie and Acorn - 3 of Obama's top supporters. The Gas Crises was caused by liberals who fight the use of US resources. The two combined didn't put the economy down until the candidates were picked. The fact that the Candidates of both parties were in favor of increased regulation, increased tax and financial burdens on business and the fact that both favored the current bailout strategy showed the market that they had no chance at a trustworthy president. When we elected one who spent his campaign quoting Marx and Lenin and treating their Ideas as a good financial plan, The market was bound to tank. Anyone remember 1977-1980? Obamas Ideas killed the economy when they were Carter's Ideas why would anyone trust them now?

Like I said above - I don't oppose a tax holiday, though I don't see a two month tax holiday having as far-reaching an effect as you describe. I just don't think we have to play Chinese menu with strategies to combat the economic downturn - you know: pick 1 from column A, 1 from column B. I think this is one of the times where we take a broad-based approach to stimulate all sectors of the economy.

The current plan is a 2 month holiday based on the second half of the bailout fund. Congress proposed doubling the amount of the bailout to which many say, "Great, give us 6 months tax holiday." If we can afford to through anough money at this problem to pay for a 6 month tax holiday why can't we just cut taxes in half and solve the problem. We have at least the 2nd highest corparate tax rate in the world discouraging companies from coming here and chasing our companies out. Taxes rise, savings drop, debt grows and still the government demands more. Get government out of the way and let people use their own money to fix the problem. Barney Frank has made statements in the last week or so that explain the problem. First he claimed that it was not our money. His view is that money belongs to government and they are generous enough to let us have some. Second he claimed there are no companies only individuals and this is welfare for those individuals. It's clear he likes to take the money and dole it out to us on his terms. By doing so people feel a debt to him and his friends and they keep them in power. The Big 3 Bailout, like the bank bailout, is a power grab. Government giving "welfare" and taking control in the companies. This is, effectively, nationalization. The government taking ownership and control of companies. It is the first step to Communist take over. Don't believe me? Check your history. Communism/Socialism has taken over every country that nationalized businesses and it happened within 2 years. EVERY TIME! When the state controls the companies, the prices and the jobs you are a slave to the state, not a citizen of it.

keep in mind that a tax holiday applies to everyone. If your employer pays you $8/hour it costs him $12/hr to have you as an employee because of tax burdens. Companies could hire more. Taxes add to consumer costs so prices would lower and they cut company profits so the increase in profits would boost hiring as consumer demand made the companies need more employees.

With the bail outs being that huge they should have made a contract that said if the money wasn't used for the reasons given that they would lose the company. They should have to account for every penny that is given to them. As you and I have to count for every penny we make to the IRS. Sell the company to the highest bidder and move on. This is just so upsetting that me and mine work our hehinds off to pay for someones vacation or trip to the beauty salon. This year we didn't go on any kind of retreat because we could not afford it. If they keep on putting the bandaids on things the whole world will view us as the Mickey Mouse club.

I have not seen where anything has improved at all.

If the government had any intention of real oversight they would not have thrown, what is now estimated to end up at, $3.3 billion dollars at a $1.1 billion problem. Our national debt amounts to around $35,000 for every man woman and child in the country. If we are going to increase it for a bail out the best way is to give it to those being forced into debt. We can improve the economy better by improving the lives of consumers than by improving the situation of corporations.

I Love it thanks for showing me where to find it. I'll sing your praises.