Monday, August 3, 2009

Congress is the Clunker

From the Congress majority that believes in the Robin Hood theory of taxation comes one of the most inequitable programs ever created by Congress – CARS (Car Allowance Rebate System) – affectionately known as Cash for Clunkers.

Instead of stealing from the rich and giving to the poor, CARS steals from the taxpayer and gives not to the poor or the unemployed, or the sick or the elderly – but to car dealerships and the guy down the street who just bought a brand new, fully-loaded $60,000 Lexus SUV for $55,500 thanks to a $4,500 contribution from Uncle Sam (CARS program caps new cars at $45,000 before features, options, taxes or destination charges – the Lexus can be tricked out with over $15,000 in extras). Democrats and the Obama Administration are praising the Cash for Clunkers program, despite running out of money after one week, and are so giddy with its success, they have asked to triple its funding levels so two more of your neighbors can go get their subsidised Lexus SUV.

Apparently Congress is surprised that Americans like government handouts - imagine that.

Shouldn't a "successful" stimulus package reduce subsequent government spending, not triple it? Under this theory, if our economy emerges from the recession next quarter and Government takes credit for it (which they will, regardless of whether they deserve it or not), will they praise its successes and suggest that Congress approve $2 trillion more in stimulus funding to keep the party going?

Congress and the Administration have crushed Wall Street for compensation based on short term results – but is Congress really any different? Clearly, Congress has no problem preserving their seat in Washington by capitalising on the Populist rage du jour, mortgaging our future in the process.


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