Tony Perkins, FRC: With fears of an economic downturn spreading, Federal Reserve Chairman Ben Bernanke sought to reassure the nation yesterday . . . Rather than being reassured, the stock market dropped 306 points. By asking Congress to pass legislation to stimulate the economy temporarily, Bernanke seems to underestimate what Congress can really do. Congress does not do the "quick fix" well - it usually ends up as a disaster for taxpayers. While the Fed directs the economy through its monetary polices, the Congress' role is better suited in setting long-term economic policy.Despite what Mr. Bernanke says, one step towards that goal is making President Bush's 2001 tax cuts permanent. Unfortunately, a White House spokesman indicated that even the President is taking tax cut permanency off the table as a potential stimulus. This is a colossal mistake that will likely halt any further discussions of tax cuts this year. Currently families and investors (which are increasingly one and the same) are facing an unsure future with a number of those tax cuts, including marriage penalty relief and child tax credit, set to expire - resulting in what will be the largest tax increase in American history. Quick fixes like tax rebates or simply throwing money at social welfare programs don't stimulate the economy - people are smarter then that. Tax rebates treat the America people like teenagers heading out on a Friday night; "here's $50 for a burger, movie and enough gas to get you there and back."
We don't elect our leaders to make quick fixes during a political year but to make hard decisions that reward savings and foster growth. Maybe this will provide more incentive to families to repossess Congress by supporting morally and fiscally responsible candidates.
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