January 21 2009
One News Now: Obama's economic plans inefficient
A visiting fellow with the Independent Women's Forum (IWF) believes President Obama's proposed stimulus package is not the most efficient way of spurring economic growth.
Sabrina Schaeffer calls the plan an economic bailout of mismanaged businesses, states, and underperforming schools. She also notes that Congress has no capital.
"Every dollar that Congress invests in the economy is actually money that was first taxed or borrowed out of the economy," Schaeffer explains. "So we have to think about...when we take money from one group and give it to another what kind of effect is that going to have. [We need to take into account] the ramifications of moving that money around."
The University of Virginia graduate says instead of a "redistribution of the wealth," lawmakers on Capitol Hill should be crafting business-friendly policy.
"The kinds of things that would do that are making the 2001 and 2003 tax cuts permanent, or at least keeping the reductions for as long as possible," she suggests. "I think we all know that uncertainty is the worst thing for a market. So not knowing whether or not you're going to have that money is critical in terms of people's choices, in terms of investing."
Schaeffer also suggests lowering corporate tax rates. She notes that the U.S. has the second highest corporate profits tax rate in the world, which creates incentive for businesses to relocate overseas.
The visiting IWF fellow adds that the U.S. is witnessing a sudden transformation in the government's role with the American people and the economy -- and she says people really need to pay attention to that.