I would like to remind people of a few facts about economic assistance provided to the citizens of our nation during this most recent recession. In the beginning of the recession huge loans were made to businesses “to big to fail.” These loans, with few exceptions, have been paid back with interest.
The rest of the deficit increase has been the result of:
1. A $700 income tax credit to all but the top earning households of America. More than 100 million of them.
2. A 2 point reduction in Social Security deductions for all working Americans covered by SS.
3. Extended federal unemployment benefits for far beyond the usual 13 weeks we have seen in past milder recessions.
4. Infrastructure improvements. Up here in Cobb we saw highway 175 repaved. These project went on all across America, giving jobs to ordinary people.
5. The federal government kept employees working instead of adding millions more to the unemployment rolls.
6. Less tax revenue coming in because we were in, yep, a recession.
7. Homeowners who bought at the peak and were foreclosed on and their homes sold at a loss by the banks and the balance forgiven found themselves owing income tax on that balance as unearned income. Their tax was forgiven over a several year period. The administration and congress rightly believed these people were due tax relief in this circumstance. Also, rightly I believe, that tax relief was not extended to individuals who refinanced, using their growing home equity as a piggy bank to purchase cars and toys and easy living.
With so many legitimate reasons to criticize this and previous administrations, and, no doubt, future ones, it is a waste of time to dwell on the notion that this administration and congress has neither cared about nor helped the average people of our country. They have extended a great deal of relief to the common man. That we have a big deficit as a result only affirms that there is no free lunch.
William Eason, Cobb
