Quick Shots: Where is $500 Greater Than $3000?

Okay, so Obama came out and wants to give people a $500 tax cut. Now, I am not one to go against tax cuts, but come on! Does this idiot not realize that people were giving a $3000 tax credit last year? (And yes, a tax credit is pretty much the same thing as a tax cut in this situation.) What happened last year? Oh yeah, we stayed in a recession and it actually got worse.

So yeah, how the heck will this work? It won't. See, for a tax cut to actually do something, it needs to include 2 things.

1. Be large enough to change people's incentives
2. Be timed so people can plan accordingly

Well, a tax cut of $500 doesn't fit part 1 cause yeah, $500 ain't that much money and for part 2, it will just be like finding $500 on the sidewalk. It won't change people's underlying behaviors. And if you want people to spend stupidly, well, that was what happened last year.

So, did it work? Nope. So, will this work? Nope. Believing otherwise won't make it so. Too bad Obama, a day late and a dollar short. Yep.