Report: Stimulus Doesn’t Help Enough

Lee Stewart · 02-11-2009, 09:52 PM

Report: Stimulus Doesn’t Help Enough

Quote:

By Erik Gruenwedel | Posted: 11 Feb 2009
egruenwedel@questex.com

The National Retail Federation Feb. 11 told Congress, hours before the Senate and the House approved a $789 billion stimulus package, that the economic legislation wouldn’t do enough to provide a jumpstart to bring shoppers back into stores.

Instead the retail trade association said legislation aimed at increased home ownership tax credits coupled with a series of national sales tax holidays (shopping days where no sales tax would be applied to purchases) would promote speedier consumer consumption.

“The increased sales resulting from these holidays would provide a direct infusion of liquidity into the economy estimated at $20 billion, benefiting consumers and cash-starved states, and would preserve and create significant numbers of jobs through interrelated sectors of the economy including the retail, manufacturing and transportation industries,” said Steve Pfister, SVP for government relations at the NRF.

The group estimates the proposed tax holidays could save consumers nearly $20 billion, or almost $175 for the average family, based on the $236 billion in sales tax collected nationwide each year. It said retailers have reported sales increases of 35%-to-40% from previous state-level tax holidays.

The economic stimulus legislation comes as the retail industry is facing one of its most difficult years on record. The NRF predicted retail sales would drop 2.5% during the first half of 2009 and end the year down 0.5% from 2008, which closed 7.9% down from 2007.

This would be the first year-to-year drop since the trade group began forecasting results in 1995. In addition, the retail industry lost 579,000 jobs in 2008 and is continuing to see job losses this year.

The NRF based its prediction on the cargo volume of retail products arriving from overseas (imports) at major U.S. ports, which is expected to drop 11.8% during the first six months of 2009, indicative of a worsening domestic economic landscape.

Volume for the first six months of 2009 is forecast at 6.6 million 20-foot-equivalent units (TEU), compared to 7.5 million TEU during the same period in 2008. A TEU is one 20-foot container or its equivalent.

Final data for 2008 showed cargo volume for the year at 15.2 million TEU, compared with 16.5 million TEU in 2007, a decline of 7.9% and the lowest total since 2004, when 14 million TEU moved through the ports.

“Unfortunately, cargo volume at the ports reflects retailers’ anticipated sales, and [we] expect that sales will get worse before they get better,” said Jonathan Gold, VP for supply chain and customs policy at the NRF. “Retailers are only going to import what they can sell.”

The U.S. imported more than $1.9 trillion in goods from foreign countries (spearheaded by China) in 2007, according to the U.S. Department of Commerce.

http://www.homemediamagazine.com/ret...p-enough-14560

**rbinck** · 02-11-2009, 10:34 PM

Sales tax is a State tax. Seems like telling Congress about a sales tax holiday is pointless.

eHDMI · 02-12-2009, 07:20 AM

The title should be: Report: Spendulus doesn't help at all, causes more harm than good.

Loves2Watch · 02-12-2009, 08:34 AM

Quote:

Originally Posted by eHDMI

The title should be: Report: Spendulus doesn't help at all, causes more harm than good.

I second that...

Joe Las Vegas · 02-13-2009, 02:08 AM

The only thing that will work in the long run is more taxes, that's the only way to fund programs, create jobs, keep the economy going..., but in the USA taxes are bad

, then you wonder why health care and education suck, which are two things that need to be federalized, so that it will take the strain off the states, so that way all 50 states will have more money for state programs, state jobs and services.

Thomas Foolery · 02-14-2009, 05:54 PM

Quote:

Originally Posted by Joe Las Vegas

The only thing that will work in the long run is more taxes, that's the only way to fund programs, create jobs, keep the economy going..., but in the USA taxes are bad

, then you wonder why health care and education suck, which are two things that need to be federalized, so that it will take the strain off the states, so that way all 50 states will have more money for state programs, state jobs and services.

Our economy is dependent on people having money. Raising taxes takes that money out of the economy, which is bad. If you lower taxes people have more money, and they will spend more money. Which causes companies to have to make more products to sell to consumers which creates jobs and produces new tax payers, which leads to more tax revenue. Don't be a socialist tool.

1080PsF · 02-14-2009, 08:32 PM

The scum sucking politicians that are in Congress need to stop spending money like drunken sailors that have unlimited budget. The stimulus package should have just been called the pork barrel spending package so much waste is wrapped up in it just like everything else they do. A good title but it’s just another scam that American’s have to be burdened with. It’s time to have another tea party. The politicians have forgotten that they work for us not the other way around and the only reason that they are able to do this is because so many people are just sheep and they like to be told a good story. Well, welcome to Socialism it’s what this President and the rest of Congress wants.

erict · 02-14-2009, 08:40 PM

I think this stimulus package will work well, just look at the first one

Lets just send the corporations checks to speed up the process. This country is really in a nose dive and the only thing being done by congress with these stimulus packages is trying to ease up on the throttle instead of pulling back on the wheel. They are also creating alot of fear in people and because of this we are not spending, aka "consumer confidence". Without it we are stuck and going nowhere I'm afraid.

02-11-2009, 10:34 PM	#2
rbinck Administrator Join Date: Apr 2004 Location: Katy, Texas Posts: 12,338	Sales tax is a State tax. Seems like telling Congress about a sales tax holiday is pointless. __________________ www.highdefinitionblog.com www.BlogOfHawaii.com

02-12-2009, 07:20 AM	#3
eHDMI Vizio 37 LCD Join Date: Mar 2006 Posts: 1,648	The title should be: Report: Spendulus doesn't help at all, causes more harm than good. __________________ Discount HDTV Accessories HDFury

02-13-2009, 02:08 AM	#5
Joe Las Vegas LCD is the only way Join Date: Oct 2007 Location: Las Vegas Age: 40 Posts: 1,411	The only thing that will work in the long run is more taxes, that's the only way to fund programs, create jobs, keep the economy going..., but in the USA taxes are bad, then you wonder why health care and education suck, which are two things that need to be federalized, so that it will take the strain off the states, so that way all 50 states will have more money for state programs, state jobs and services. __________________ MY 42" 1080p LCD TV / 360 / PS3 slim / 7.1 SETUP Check out my ride

02-14-2009, 08:40 PM	#8
erict High Definition is the definition of life. Join Date: Jan 2008 Location: Mich Posts: 909	I think this stimulus package will work well, just look at the first one Lets just send the corporations checks to speed up the process. This country is really in a nose dive and the only thing being done by congress with these stimulus packages is trying to ease up on the throttle instead of pulling back on the wheel. They are also creating alot of fear in people and because of this we are not spending, aka "consumer confidence". Without it we are stuck and going nowhere I'm afraid. __________________ Panasonic 50PZ85U Vizio VO32L Sony HT-CT100 Yamaha V663 Energy C-300(frt L/R) Energy C-C50 (center) Energy C-R100 (surrounds) Energy ESW-10 & eD A2-300(subs) D* 5LNB Slimline HR21-100 (Panny) H23-600 (Vizio) R22-200 (Zenith CRT) Harmony One Remote

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02-14-2009, 08:32 PM	#7
1080PsF Compression Sucks Join Date: Jan 2006 Location: Monrovia, CA. Posts: 451	The scum sucking politicians that are in Congress need to stop spending money like drunken sailors that have unlimited budget. The stimulus package should have just been called the pork barrel spending package so much waste is wrapped up in it just like everything else they do. A good title but it’s just another scam that American’s have to be burdened with. It’s time to have another tea party. The politicians have forgotten that they work for us not the other way around and the only reason that they are able to do this is because so many people are just sheep and they like to be told a good story. Well, welcome to Socialism it’s what this President and the rest of Congress wants.