Less than 2 weeks ago, my “TRICKLE DOWN OR CREEP UP?” blog urged Congress and the Administration to work together to deal with the economic problems facing our nation and our housing market. Little did I know how much impact my blog would have in Washington. I didn’t even know that anyone in government read my blogs.
Sometimes our prayers are answered. In fact, the cooperative efforts of Congress and the Administration have settled on a combination of Trickle Down and Creep Up policies. They have agreed to tackle the sluggish economy from both directions.
The Trickle Down efforts are reflected in the extension of expiring income tax cuts to the wealthiest Americans, and a reduction in the Federal Estate Tax. These measures could result in increased personal spending, improved corporate profits, and trickle down to more jobs for the middle class.
The Creep Up efforts can be seen in the extension of expiring tax cuts to everyone, temporary reduction of Social Security taxes on earned income, renewal of jobless benefits to the unemployed, a child tax credit, and business tax breaks designed to encourage investment. These measures could result in increased spending, economic expansion, job growth, and a stable housing market.
So, in the spirit of Christmas, and in an effort to be home for Christmas, our lawmakers have come together with a plan that has something for everyone (with the possible exception of the deficit). Is it a good plan? Only time will tell. But in my opinion, a plan is better than no plan.