Once Not Good Enough: Stimulus Checks

With the economy's "progressive" lump, lawmakers are under pressure to do more than what they have been doing in the past months to boost both the economy and the faith of the American people in their government.

According to CNN, "the chances have increased that Congress could pass a second stimulus package during its lame duck session following the presidential election." And the White House said again that President Bush would be "open" to ideas for a second stimulus package, although press spokeswoman Dana Perino added that the administration would want to see details first before signing on. The administration believes that many of the proposals being discussed would not stimulate the economy.

What's up 4 Discussion?

• Democrats are steady pushing for a second stimulus check, while Republicans insist on tax incentives/break.


• Democrats want to extend jobless benefits, increase food stamps and invest more money in infrastructure projects to create jobs in the near term


• Democrats have also called for a moratorium on foreclosures


• Republicans are suggesting a temporary reduction or elimination of the capital gains tax on stocks and lower income tax rates for companies that buy distressed assets


• House Republicans are also calling for purchasers of homes that are not primary residences to be entitled to the same capital gains exclusion as owners who sell their primary residences.


• Both McCain and Obama's campaigns, though different in most ways, call for suspending the income tax on unemployment benefits and temporarily exempting seniors over 70-1/2 from having to make any withdrawals from their IRAs and 401(k)s.

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A second stimulus check could benefit the American people, however, don't expect anything to be final within the next few months. Whether another stimulus would harm more than help citizens is still in the air. While stats show that the first stimulus did increase consumer spending, it had no impact on consumers' savings or ability to pay down debt, neither of which is considered a short-term boost to economic activity.

So, don't hold your breath too long people!