1) Our family would use the extra money from the reduced with holdings to help pay for our oldest child's college tuition and to do some projects around our house including installing a fireplace in our living room and finishing the kitchenette / bar in our rec. room
There is no doubt this plan would improve the economy beyond measure. People, including my husband and I, are holding onto our money because of the level of uncertainty being created in this current atmosphere. Because it appears the Democratically controlled Congress & White House plan to push through all kinds of programs and regulations that will hurt the economy and not help it AND we're printing and borrowing money like there is literally no tomorrow, we're afraid our dollar will be so devalued we will have to make some serious cuts. We're concerned about a looming threat to our totally reliable health insurance if there is a push for Universal Healthcare, and finally we are expecting a serious cut in our income because there is no pledge to make those tax cuts from 2003 permanent. We will jump to 28%.
More than anything, the uncertainty is freezing this economy.
2. In order to pay for the proposed plan and deal with our already crushing debt, we need to cut spending ACROSS THE BOARD!
The Federal government is far too large, intrusive, and bloated. That is a relevant question, despite what we've been told.
In addition to the TCOT plan proposed I must add that tax cuts and spending cuts across the board are not enough.
If government regulation of the private sector is not examined in a serious way and reformed, underlying problems that stifle growth will continue to plague us.
In some areas, there is far too much regulation - i.e. energy exploration and extraction and one of the primary causes of the current "crisis", mortgage lending.
In other areas, there is not the right kind of regulation - SEC.