Bailout: Wall Street or Main Street? Who to believe

The predicate for this $700 Billion dollar bailout plan is that it isn't to bail out Wall Street, it is needed to bailout the economy. Well let me point to previous calls by the President and Wall Street as to what determines the health of the economy. There are 2 things that determine the health of the economy. It is Corporate spending and Consumer spending. In fact, we have been told around Thanksgiving each year that it is the Consumer which determines nearly 67% of that equation and Corporate spending the other 33%. One could make a very good argument to give the $700 Billion to Consumers instead.

Yes, business needs to be able to borrow to get the goods and equipment necessary for their businesses to function. And our economic system is based upon consumption. However the Government doesn't tax consumption. Maybe it should and we need to reshape the tax code. As more and more of our population retires we won't have enough Income from the rest of the population to tax adequately to get the necessary funds to keep this ship afloat. Maybe indeed it is time to change the tax code to a Consumption Tax and away from an Income Tax. That way everyone pays including illegals and those who cheat on their taxes.