It never ceases to amaze me how the Federal Government can take a simple issue, and make it as complex as an eight layer cake. But if we take the time to do the math, we certainly spend a lot to stimulate a little.

First, it should be clear to everyone that in the end, it is you and I that spend our money that fuel the economy of this nation. Take away the individual earners and consumers and you have no reason for any of the rest of the system called the US Industrial complex to exist.

When we do the math(depending on which numbers you choose to use), we are spending via this Stimulus Plan a little less than $3000 per person to stimulate the economy. But borrowing money to spend it has never been a good thing. And in the end most of this money will be spent poorly, providing little return on the dollar for those that will have to pay it back at a later date.

If we want to restore confidence, if we want to restore faith, if we wanted to get money flowing once again, I suggest that we should have taken a different approach. Each individual assigned a Social Security Number should receive a $3500 lifetime tax credit to offset their Federal Income taxes for the years 2008 and beyond. This tax credit will exist until it has been fully used by each individual.

This plan leaves more money in the hands of those working now. It encourages people to work harder to earn more now to take advantage of the tax credit. This plan allows the individual to spend the money on what they need as they see fit rather than waiting for some sort of trickle around approach that will need to occur as the money flows from business back to the individual.

This plan is immediate. Workers can change their tax withholdings today. Tax filers could take the deduction from their 2008 Federal Income taxes today. No delay. No waiting to see if and when they receive a benefit. This immediate benefit will provide confidence to all of us.

Individuals who cannot take full advantage of the benefit in one year will have the ability to use the benefit over multiple years. We are all treated fairly in this manner.

This plan encourages individuals to seek work because they will earn income free of Federal Income taxes until they have used their credit. That is what stimulus should be.

This plan requires no Federal oversight that is not already in place. This plan is measurable as we will be able to see how much of this Stimulus is claimed each year via the Federal Income Tax filings. Best of all, this plan would have reduced the power of the Federal Government and placed a bit of it back into the hands of We, the People.

This plan also means that we will be “borrowing” from the future tax revenues of the Federal Government. Now they will have an incentive to get out of the way of business, something which they do not have today. But no additional money would have to be borrowed or printed for this plan to be put into effect today. We would just need to have the politicians control their spending as we accelerate our spending. I'd rather borrow from myself rather than the rest of the world.

Perhaps that is why we will never see a plan such as this.

What are your thoughts? Tell me what you think.