Reject the OPR Stimulus Plan

The stimulus plan offered up by Congress is not that of the President-elect Obama's, but that of Obey (D-WI), Pelosi (D-CA), and Rangel (D-NY). While, Mr. Obama and his economic team have provided some broad strokes, this plan is purely a liberal democrat plan--the OPR stimulus plan. David Boehner (R-OH), House minority leader, almost had it correct in calling it the "OMG" stimulus package. Republicans would do well to reject 70% to 80% of this hodge-podge of social welfare, transfer payment and useless spending provisions of the measure. Republicans must offer a substitute measure and get a vote on it.

How is this Change???
Much of the measure, as released by David Obey's (D-WI) Appropriation committee, is the same old stale crap on a paper plate served up by the liberal cabal during the Reagan years to the tune of $825 billion dollars. Charlie Rangel's (D-NY) Ways and Means committee has offered some compelling tax cuts that actually will provide some stimulus to a weakened economy. The only aspects of the plan that will have a stimulative effect, from a Keynesian economic point of view, are the proposed $122 billion dollars of spending on roads, bridges, mass transit, waterways and the energy grid. One could throw in the $102 billion proposed for "workers" in a further strengthening of the existing safety-net during these tough economic times. The rest of the proposal reads like an appropriation measure that had not yet been met during earlier administrations going back to the Great Society of President Lyndon Johnson. How is this Change??? Unless the Obama team offers up some real change, it could become apparent that the left-wing of the democrat party will attempt to ride roughshod over the West-wing. And this mutant bird will not fly.

What Republicans Must Do!!!
Congressional Republicans must offer up a substitute measure and get a vote on it!! Think 2010.....

1. Go along with much of the democrat Ways and Means committee provisions regarding business taxation (ie: bonus depreciation, five year carry back provision, and an increase in small business expensing).
2. The Education credits and first-time home buyer provisions will have a stimulative effect as well.
3. Lower the capital gains tax to 10%. This can be strongly stimulative through incentive to take risk and create jobs.
4. Create an expensing provision that allows Research and Development expenditures to be expended at 120% of actual costs. This will reward both small and large businesses for their ingenuity and provide an incentive to risk taking that will create additional jobs.
5. Reduce the top corporate tax rate to 25%. Better to free-up capital for private-sector jobs than to create governmental employment for piggies to wallow in.
6. Reduce the payroll tax to 5%, both the employee and employer parts of this tax. This will provide a strong stimulus and also move the whole social security system re-tooling to front and center.

The OPR Stimulus plan offers very little in the way of stimulus that will create employment and economic growth. It will be far better for the Republicans to embrace a plan filled with lower taxes and other tax incentives to get capital flowing and unleash the entrepreneurial spirit of America. This is the only way out of our current economic doldrums. Press hard on these pro-growth policies. Let the young President Obama be the final arbitrator that makes the determination of what is good, bad and ugly in the overall package. And with some "audacity of hope" we might have another "seven fat years" similar to the Reagan era.