Tax rebate proposed

[sweeps]

Spend your way out of the recession!!!*

Lawmakers were instead discussing a $500 rebate for individuals, the aides said, with details for couples and people with children still being negotiated.

The rebates would likely be limited to individuals with incomes of $85,000 or less and couples with incomes of $110,000 or less, the aides said, speaking on condition of anonymity because no final decisions had been made.

Article

Hope you didn't make $85,001 (or $110,001 for couples) last year.


* Yes, I'm being sarcastic.

[aida2003]

out of range, though I wouldn't spend that rebate. I'd invest in the fund instead.

[bjl584]

Demand Side economics don't work that well. This was done back in 2001 and most people ended up putting the refund into their savings account. America has some of the highest corporate tax rates in the developed world. That would be a better place to start as opposed to cutting checks to the masses.

[Broken Arrow]

I believe that any kind of rebate or money back isn't going to get anyone to improve their lives for the better. Somewhere, I read that the Democrats are mainly the ones pushing for this, and I disagree with this policy. I prefer what the Republicans are proposing, which is to reduce capital gains tax. Reward people for saving and investing more.

[billchrz]

Just barely meet the requirements....whoohoo

[bjl584]

Unfortunately we are in an election year. Common sense has given way to politics. There is no quick fix to our current economic troubles, but politicians are looking for votes. Handing out money is a good way to get people on your side whether it ends up working or not.

I think that I took my first tax refund check back in 2001 and put it into my savings account. If I do get one this time I am planning on using it to pay off my Lowes credit card. That's my current economic stimulus plan.

[PrincessPerky]

Originally Posted by bjl584

Unfortunately we are in an election year. Common sense has given way to politics. There is no quick fix to our current economic troubles, but politicians are looking for votes. Handing out money is a good way to get people on your side whether it ends up working or not.

and that is why I hate politics!

getting votes is more important than doing the right thing...

[prosper]

This is a very interesting topic. No matter what decision is made there will be a catch 22.

- If the prime rate is lowered, this will possibly result in market inflation.
- If the congress go forward with the plan of issuing 145B to americans who meet the requirements, it would give the economy a quick boost but who knows what might happen afterwards

-If nothing is done, companies will continue layoffs, americans will further dig themeselves deeper into debt,( resulting in less consumer spending at firms) and foreclosures will continue to rise.

What do you do? Congress have their hands full.

[prosper]

Originally Posted by PrincessPerky

and that is why I hate politics!

getting votes is more important than doing the right thing...

I agree with you, but you have to ask yourself, are "we" the american people ready for someone to tell us what we need to hear. "We" want someone to make us feel good regardless of how wrong "we" are.
That's another topic though.

[jasanderson]

i'll be using mine to pay my high cost energy bills.

[mbarriere]

These tax rebates are meant to stimulate the economy, but I do not believe it does. The gov't wants you to get the money to go out and spend it in order to avoid a recessision.

Most people use the cash to pay off credit card debt. This does not stimulate the economy. Running up the debt a while back did. Others like on this forum, put the money into savings and/of investments. Again, this does not stimulate the economy.

Back in 2001, when Bush did this, I do not believe it stimulated the economy. What did stimulate it was the dropping interest rates. Because everyone refinanced or got Home Equity Loans to either improve their homes or go out and spend it. I do not think this will be the case this time around.

Don't get me wrong. I'm all for getting a tax rebate. As president Regan beileved, I know better how to use my money than the gov't does. I just don't think this tax rebate will accomplish what a lot of politians are hoping for.

[mbarriere]

Originally Posted by Broken Arrow

I believe that any kind of rebate or money back isn't going to get anyone to improve their lives for the better. Somewhere, I read that the Democrats are mainly the ones pushing for this, and I disagree with this policy. I prefer what the Republicans are proposing, which is to reduce capital gains tax. Reward people for saving and investing more.

I agree, I'd like to see a reduction of capital gains tax, but really, the gov't doesn't really want to reward people for saving their money. The gov't ultimately wants you to spend your money.

The capital gains tax reduction is to allow the rich to get richer and spend more money. What I love about that concept is if I get rich, I can leverage it. Unfortunately, I'm far from being rich.

[Taribor]

Originally Posted by aida2003

out of range, though I wouldn't spend that rebate. I'd invest in the fund instead.

Same here.

My answer to help the economy is not to go spend myself into more debt for the greater cause but rather pay off debt or invest/save.

Personally if I get a check, I will invest it and 20 years from now thank Mr. Bush for what has grown into my 10,000 rebate