Jon Kyl troubled by tax rebate plan
January 25th, 2008, 9:31 pm · Post a Comment · posted by Paul Giblin
Jon Kyl and George W. Bush
Before headlining a campaign rally for presidential candidate John McCain in
Phoenix, Jon Kyl offered his assessment of the proposed economic stimulus package.
The proposed $150 billion tax rebate program would distribute $600 each to 117 million eligible taxpayers who earn $75,000 or less a year. That comes to $1,200 a couple earning a combined $150,000 or less a year. Plus, $300 for each child.
Kyl, the Senate’s No. 2 Republican, told me he doesn’t support the plan at all.
“What don’t you like about it?” I asked.
“Um, how much time do we have?” he replied.
Keeping in mind that the McCain rally was scheduled to begin in a few minutes, he offered the condensed version of his concerns.
“First of all, it’s a great re-investment,” Kyl said sarcastically. “They take 1 percent of the GDP and they’re expecting a return of seven-10ths of a percent. Now, you wouldn’t stay in business long with that kind of a return – and that’s an optimistic forecast. It adds dramatically to the deficit. I don’t think it will stimulate the economy very much. And there are better ways to do it.”
Most importantly, Kyl said, the tax rebate package that’s currently being produced in House won’t be the final version. Democrats in the Senate already are taking about expanding it. The final version could end up $30 billion or $40 billion fatter – or even fatter still.
Despite Kyl’s personal reservations, he expects the measure will pass. “Politicians want to do something,” he said.
If the measure stays on track and President Bush signs it, $1,200 wide-screen televisions should start disappearing from store shelves in May.
