Refundable tax credits aren’t tax cuts. Mailing checks out to people who already owe no income tax has been tried before with no success. On the same note, extending net operating loss from 2 to 5 years is the same thing, only you’re sending welfare checks to businesses as opposed to individuals. As to the other two pro-business components, raising the upper bound of cap ex deduction and one-year tax credits for job creation, it’s more of the same. The point is, neither will have significant impact in a down economy where companies aren’t hiring and aren’t making equipment expenditures. The larger point is that it’s all spending. Tax credit? Government writes a check. Extending NOL? Government writes another check. You get the picture.

None of this influences consumer or business behavior in any way. To increase confidence you have to cut rates. If you really wanted to stimulate from the supply side, you’d halve the payroll withholding rate, which would both increase the velocity of money and cause immediate changes to consumer behavior.

Until then, let’s call this proposal what it is: vapor. I see no “tax cut” component here, it’s 100% spending, and our congressional Republicans should call it what it is.

The GOP can say they made a bad bill “better” through their efforts (and you can bet a significant percentage of Democrats would vote against any amendment that cuts taxes, so the GOP can claim almost exclusive credit for that), but in voting against the whole package they can then deny any culpability when the final bill produces no beneficial results a year from now.

I think your strategy is the best political response possible for the GOP.

Let’s get the word out! We have a plan now!!