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Sodrel on the "stimulus package"

With the debut of Mike Sodrel's attractive new website (hat tip: HoosierPundit), we find his "Statement on the Passage of the Economic Stimulus Package"...

First, I tried to predict Baron Hill's position on the stimulus-- and Mike's hypothetical response. I figured that Hill's desire to claim fiscal conservatism would trump his desire to pander. Wrong!

Then, I wrestled with Mike's response to Baron's support of the stimulus. On the one hand, as a supposed fiscal conservative-- and as someone who I'm told is knowledgeable about economics and skeptical of government-- he should oppose it. But it would be quite difficult politically to hold that position-- especially when Baron has already staked out the "tax-cut" position.

Alas, now we know...

Jan 30, 2008 — (Jeffersonville, IN) – Congressional Candidate Mike Sodrel released the following statement in response to the House passage of the Economic Stimulus Package:

"I commend Congress for passing much needed tax relief, but this is just a start.

-Much needed tax relief? For the macroeconomy? Probably not.

-Much needed tax relief for individuals? Sure, it's always nice to have more money in our pockets-- whether in relatively soft economic times or not.

-This is just a start? Yes, with the additional debt, in the end, we'll have to raise taxes in the future to pay for the start.

"The President's tax cuts are set to expire in two years. Should that occur, Americans will see a tax increase as rates return to pre-2001 levels.

Correct. But with the additional debt that Hill chose and Sodrel applauded, it will be that much more difficult to have tax cuts for the indefinite future. And the tax cut that would disappear is the only one of the three Bush tax cuts that lowered marginal tax rates-- the tax policy that encourages people to engage in productive behavior. Thanks to both of my opponents for supporting a grossly inferior tax cut!

"I urge Congress to make the President's tax cuts permanent and pass lasting tax reform.

Good luck with that!

Americans cannot make long term financial decisions based on short term tax policy.

Likewise American politicians should not make short-term tax policy decisions based on short-term political considerations, while ignoring short-run and long-run economic considerations.

WWMD?

What would Mike have done with the President's "stimulus package"-- if he had been in Congress this year instead of Baron?

Would he have been willing to go against the President-- and to vote against what would be labeled a tax cut? Would Mike have played the part of fiscal conservative-- or gone along with the Washington crowd?

I'd love to know now-- but we'll probably hear about it as a campaign issue soon enough...

Press Release: Schansberg criticizes Baron Hill, Congress, President Bush for Stimulus Package

February 9, 2008

FOR IMMEDIATE RELEASE

Schansberg criticizes Baron Hill, Congress, President Bush for Stimulus Package

Dr. Eric Schansberg criticized the $167 billion “stimulus package” passed by the House and Senate on Thursday. President Bush had called for such a measure and has promised to sign the bill next week.

Schansberg, a Professor of Economics, said that it is not clear whether the economy is in a recession or even a significant economic slowdown. “There’s an old joke about economists—that we’ve predicted nine of the last five recessions”.

Even if we’re in a slowdown or a recession, the stimulus would probably be too late to be effective. Schansberg said, “Attempts to engage in fiscal policy are notoriously slow. It takes time to recognize a problem, to implement a solution, and to see the solution have its impact. In this case, the Treasury will be mailing out checks all summer long.”

Schansberg also questioned whether the plan is ethical. “Even if this would work, why is ethical to take money from the future taxpayers who will have to pay for it? The President and the Congress are, again, spiking the budget deficit and the national debt.”

On this, Schansberg singled out Baron Hill (D-IN) in particular—for his vote in favor of the package. “He likes to claim that he is a fiscal conservative. All I can say is that I appreciate his sense of humor about such things.”

Schansberg pointed to politics and the November election as the catalyst for the legislation. “Politicians are trying to buy our votes with the money of future generations. It will be interesting to see whether the public rewards them in November.”

what?! Hill votes to bust the federal budget?!

Hill Supports House Stimulus Package

This afternoon the U.S. House of Representatives passed H.R. 5140, the Recovery Rebates and Economic Stimulus for the American People Act of 2008. Congressman Baron Hill voted for the bill and issued the following statement:

“Years of reckless spending and few, if any, sound fiscal policies by the current administration have led us to our current economic state. While I supported the economic stimulus package today, we must remember that this is only a temporary, stop-gap measure. We must also remember that our underlying economic problems remain to be addressed. The long-term solution will require much more than rebates, but a real commitment to fiscal conservancy.”

Wow, I'm surprised Baron would make this choice; I was wrong in my prediction...

Two things come out of this: 1.) Baron has ripped off his fig leaf of a claim to be a fiscal conservative; and 2.) Mike will not be tempted to rip Baron for opposing this (bogus) tax cut.