No federal income taxes for two months? It sounds too good to be true. But, U.S. Representative Louie Gohmert says it just may be the ticket to solving the nation's economic woes. As KLTV 7's Layron Livingston shows, the plan is gaining some steam and could put some of your own money back in your pocket.
About half of the $700 billlion bailout is still out.
"The government has been buying into banks, they're wanting today to buy into the auto industry. That's called socialism and we don't need to keep going there."
So Gohmert says it's time the Treasury Department and Congress put that money to better use.
"They're committing us to 6 and a half times as much as the government will receive in federal income tax, so we'd be better off if we cut off their spigots."
Americans pay more than $100 billion in income taxes each month, with more than $60 billion to help fund Social Security and Medicaid.
Gohmert says, let's just give that money back to you.
"That makes that check that much better."
At least for January and February 2009. The two month tax holiday is gaining more attention. Just this week, it was a topic of discussion on Fox News with Neal Cavuto.
It's also hit AmericanSolutions.com, a conservative think tank founded by former Speaker Newt Gingrich.
The bottom line, Gohmert says, is to let you use your own money, say, to help catch up on failing mortgages, pay off debts, buy a car, or invest. UT Tyler economics professor, Dr. Tim Kane says it's a helpful plan, just not an effective one.
"People spending is dependent upon the part of their income which they count on every month," said Dr. Kane.
Dr. Kane says Congress would do better by reducing the amount of income taxes for an extended period of time, increasing individual income.
"That sort of temporary suspension of income taxes, or if it took the form of a rebate, isn't going to change people's longterm behavior...and that's what you need to do to turn the economy around," said Dr. Kane.
Gohmert says the language to his bill is currently being drafted, and he expects to file it next week.