April 15, 2008
In honor of Tax Day, the American Propspect has run a piece of mine questioning the wisdom of Congress for telling everyone to spend their tax rebates in order to stimulate the economy. People would be forgiven if they felt unpatriotic using their rebates to pay down their debt or build up their saving. But it's not.
A better idea is to give families a bonus when they commit to savings right on their tax return, which is an idea Senator Robert Menendez (D-NJ) is now promoting. He actually is poised to introduce a bill that would create a Saver's Bonus for all households that qualify for the Earned Income Tax Credit.
Check it out here.