116 3rd St SE
Cedar Rapids, Iowa 52401
Home / Opinion / Letters to the Editor
Lowering taxes would have Clunker effect
The Gazette Opinion Staff
Sep. 2, 2009 5:33 pm
President Barack Obama and Congress should note what their Cash for Clunkers program did for our economy. Congress returned $3,500 to $4,500 to the taxpayers to replace their old cars with more efficient cars. In three to four weeks, the initial
$1 billion program ran out of money. Let's assume the government paid an average of $4,000 per transaction. $1 billion divided by $4,000 equals 250,000 new cars were sold. General Motors is bringing back about 1,350 laid-off workers in the United States and Canada. It added 60,000 vehicles to its production schedule.
This shows the president and Congress that the people increase their spending if you return some of their tax money to them. Lowering our taxes would produce the same results. Why experiment with socialism when we know freedom and capitalism have worked for more than 200 years?
Ralph Bock
Cedar Rapids
Opinion content represents the viewpoint of the author or The Gazette editorial board. You can join the conversation by submitting a letter to the editor or guest column or by suggesting a topic for an editorial to editorial@thegazette.com