Posts Tagged ‘tax credits’

Recycling The 70s

Wednesday, October 7th, 2009

Yet another stupid idea, the tax credit for employers who hire workers, has come back.

The notion that a few thousand dollars will make the difference between hiring and not hiring is extremely dubious. It rewards firms that may hire anyway, is open to easy gaming, and doesn’t address the long-term issue of unemployment.

Tax breaks generally produce far less bang for the buck than direct stimulus. More aid to the states, more benefits for the unemployed, and more infrastructure jobs to put people to work are a far better use of taxpayers’ money.

Gorilla says: “When a clown like Eric Cantor thinks it’s a good idea, you know it isn’t!”

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Buy Low On Credit

Tuesday, September 1st, 2009

Calculated Risk has another great analysis to demonstrate just how politically popular but largely ineffective tax cuts are as a form of economic stimulus.

Seems the tax credit for first-time home buyers, $8,000, will cost on the order of $16 billion, but only result in the purchase of 350,000 homes. Put differently, taxpayers are actually paying $45,000 for every home bought!!!

Gorilla thinks: “Next up: Cash For Debunkers, where we provide tax credits to send all the right-wing crazies to find Osama bin Laden in Tora Bora!!!”

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