How much will "Porkulus" cost you?

Tuesday, February 17, 2009 Comments

Link to video in case it doesn't work.

So, for the touted $8/week ($400 for the entire year) we're supposed to receive in tax "relief," every household in America is now on the hook for an additional $13,000 of debt to pay for this so-called stimulus bill.

Does it make sense to pay $13,000 to get $400? If it does, I have some quarters I'll be happy to sell you for $8 each.

Keep in mind, this is in addition to the $27,000 per household we are already in debt for the existing deficit and the recent bank bailouts, bringing the total PER HOUSEHOLD to $40,000.

I don't know about you, but I can't afford that.

The video breaks it down by tax bracket, and based on that it looks like the lump sum debt is roughly 20% of household income without interest (ranges from 8% to 45%). Including interest, it's 37% of household income on average (ranges from 16% to 84%). So, including interest, it could take you anywhere from 2 months to 10 months salary to actually pay off your portion of the debt if everything you made went just to that. That's insane.

It's very much like a person facing bankruptcy deciding they are going to solve their financial woes by taking on huge loans.

This is only going to result in shrinking businesses, more lost jobs, higher taxes, high inflation, and ultimately a declining overall economy.

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