/PRNewswire-USNewswire/ -- Today, the U.S. Senate passed a bill that not only will fail to create new jobs, but is teeming with runaway government spending for increased welfare, overgrown bureaucracy, pork, political payoffs and other waste.
"To call this spending bill 'stimulus' is an abuse of the English language," said Peter Ferrara, director of entitlement and budget policy at the Institute for Policy Innovation (IPI).
The centerpiece of the stimulus bill is little more than a welfare check -- a $500 per worker "tax credit" totaling $150 billion.
"There will be no economic net gain because the government will just borrow $150 billion from the private sector to give away, nor will there be any added incentives to save, invest, or start or expand a business, or create jobs," said Ferrara.
IPI president Tom Giovanetti agreed, saying, "This is like going through the neighborhood breaking windows to provide economic stimulus for the glass company."
To create a sustainable economic stimulus, comprehensive reductions in tax rates must be implemented. This includes:
-- Slashing the corporate tax rate to 20%;
-- Cutting the federal corporate capital gains rate from 35% to 15%;
-- Returning billions in investment capital to America by allowing
multinational companies' overseas earnings to be subject only to a 5%
-- Allowing immediate deductions for all capital investment in machinery
and equipment, rather than extending only partial deductions over
several years through depreciation;
-- And unleashing America's energy industry through deregulation,
assuring a low-cost, reliable energy supply, adding to GDP and
In the words of Ronald Reagan, government is not the solution to the problem, government is the problem. The only solution to getting the U.S. economy booming again is to unleash the private sector through fundamental tax relief.