President Obama intends to recycle the TARP profits to convert the savings into “tax-cuts” for small businesses and other infrastructure projects. The tax cuts would be a disastrous mistake and it would be something that would be just adding to the debt that we have.

Let me make this clear, these kind tax cuts would not mean anything to the middle class or the small businesses. I am not saying that I would not appreciate a tax cut, but the fact is, we got so many things to pay for that we do not feel the tax cuts effect at all. It is not like the millions that we would save if we were rich.

To prove my controversial statements above, I would like to point you guys to one example. As part of the Economic Recovery Act, the stimulus package, more than $250 billion dollars was set aside for tax cuts for the lower and upper middle class. How many of the recipients do you think would experience a reprieve or appreciated tax cut? Even today, many years after President Clinton cut taxes for the lower income bracket, people are still asking : Where was my tax cut, President Clinton?

The tax cut does not seem real at all. But what would be real is the debt it brings along with it. Should President Obama carry out his plan to convert the TARP funds to tax cuts, we would see the President cut half a trillion dollars worth of taxes. This half a trillion dollars spent, I am sorry to say, is just a waste of money.

The $200 billion could have been used to pay off the debt; we need to do that. That could have brought the deficit for this year down from $1.4 trillion to $1.2 trillion. It could have meant billions of dollars worth of interest being saved.

Many would bring us back to President’s Reagan presidency to claim that tax cuts would work, less would associate themselves with President Bush’s policies. Yes it worked, at a cost of a trillion 1980 US$! That is when the problem of debt really started in America.

If there is a further need to stimulate the economy, the many can be used in better ways. The money can be invested in infrastructure. This can be used to ensure that all our buildings and bridges are save. Lets build levies all around flood prone areas.

We can invest the money in education. Our kids are falling behind the rest of the world. While there would be people out there that blame the government, I disagree. The countries that have excellent results as of late are China, Hong Kong, Japan,Singapore and South Korea. The governments of these countries are very involved with their systems, so should we. We should meritocratize our system.

We can use the money to develop green energy. It can be seed money to help new green businesses start up. I am sure many would be interested in starting up a green business today especially with the ridiculously rebates that the government is offering in the ACES bill. This would make us very much less dependent on foreign oil.

Use it for these stuff, but please do not use it on tax cuts. It is not beneficial at all. It would just increase the debt! My preference is to use it to lower the debt that we owe China…

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