Tax Rebates As Early As May
If you’ve been keeping up with the latest economic stimulus package, it looks like we’re going to be getting checks in the mail in a few very short months.
The legislation would deliver rebates — $600 for individuals, $1,200 for couples — to most taxpayers, plus an additional $300 per child. Individuals making up to $75,000 a year and couples earning up to $150,000 would get the full rebate, with those making more than that or too little to owe taxes getting smaller checks.
People who paid no income taxes but earned at least $3,000 — including through Social Security or veterans’ disability benefits — would get a $300 rebate.
Not that I’m happy about the country adding $168 billion to the deficit, but I’m certainly not going to turn down my own money. At this time, the plan is to promptly put the money into savings or a Roth IRA, which is totally against everything the stimulus package is about. Yeah, yeah, call me un-American.
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February 8th, 2008 at 7:25 am
Economic stimulus.
Right.
Where is the money coming from?
Bush also submitted a ONE TRILLION DOLLAR budget this year and underfunded the war while he was added.
So, like you, I’m going to invest or save the money and not put it back into the economy right away. Why? Because our economy is tanking. Time to invest in foreign entities.
February 8th, 2008 at 11:01 am
Yeah! More money to put towards Debt!!
February 10th, 2008 at 1:34 pm
I think both of you have exactly the right ideas. Unlike the federal government, it’s good to pay the money you owe and save a little for the rainy day that you know will always be on it’s way.
February 15th, 2008 at 12:05 pm
If you invest the money, save the money, or pay debt, would that not be putting the funds back in to the economy? The Banks, Mutual Fund Companies, Credit Card Companies, etc. are they not an integral part of the economy? I should think the the economy is comprised of more than just Walmart. Paying your Mortgage on time would seem to help the mortage crisis more than cutting the FED a quarter basis point would.
Sorry, random thoughts
February 17th, 2008 at 12:31 pm
Spending the money on material things stimulates the economy a lot more than putting it into a savings account where the bank only gets interest when they loan out your money. If you get $1800 in your refund and spend $1800, you just put that back into the economy and put money into the pockets of all of the entities that touch that product you purchase (manufacturer, distributor, retail store, store clerk, etc). If you save that $1800, you’re going to make the bank maybe 10% interest yearly on the loan.
The fed dropping the interest rate stimulates the economy because your money (the collective ‘you’ - banks, included) goes further than it did before the drop. Of course, going further is more relevant if you’re buying stuff than if you’re saving it for the rainy day.
It would go far for people to pay the money they owe to anyone and on time, but so many people are defaulting or not living up to their financial obligations, we’re stuck with all of the attempts at stimulus.