What are your thoughts on the rebate the gov. is going to send out?

[Guest Virginia Dawn]

Long term, I think it is an awful idea. I haven't read all the posts, so forgive me if I repeat somebody.

 

That money has to come from somewhere. Do we know where?

Is our government borrowing it from another country or printing it? Are we further indebting ourselves in ways that we will regret later?

 

If the money is being printed, it will most certainly increase inflation, causing the value of the dollar to drop even further, hurting those who can not afford to be hurt even more.

 

As many have said, "TANSTAFL."

 

Wherever the money comes from, it's not real money anyway, just an illusion.

Illusions can not be maintained forever.

 

JMO ;)

[Myrtle]

Woo-Hoo!!! Now I can get that 52inch plasma hdtv 1080p television. My money is heading to China via Best Buy.

[Liberty]

Its not that I am not going to like the money we are going to get, but I like many, many others are not going to use it the way the govt. wants us to spend it. I like many others will be spending on back bills or new ones not frivolous spending like they are hoping. It is that frivolity that will boost the ecomny; so they say. So, with most of paying bills how is that going to boost the econmy? I dont' get it, or am I missing something huge?

 

Tammy

 

My brother runs a plumbing/heating company and if customers had the extra $ to pay their overdue bills my brother might not have to weekly consider laying off workers just to make ends meet. I'm sure his company is not alone.

[Andie]

I posted an article about this yesterday here that gives a quick look at the proposal.

[LizzyBee]

Yep. Here's an article about that.

 

Yes, the 2001 rebate was an advance payment, but it was related to the new child tax credit. So while it did reduce the refunds people received in the spring of 2002, it did not reduce them below what they would have gotten had the new tax credit not been passed that year.

 

If this new rebate is passed, it will be a tax cut. It will not reduce your tax refund below what you currently expect it to be. There's no way in heck the government would give all that money out if it weren't a tax cut, because not everyone even gets a refund. And millions of people pay estimated taxes rather than having income tax withheld from a salary.

 

I agree that the rebate is not the best way to improve our country's financial health in the long run. I'd much rather the federal government cut spending and stop getting involoved in matters beyond its constitutional authority. But OTOH, I won't mind having an extra $2,100 that I wasn't expecting this summer.

[LizzyBee]

My brother runs a plumbing/heating company and if customers had the extra $ to pay their overdue bills my brother might not have to weekly consider laying off workers just to make ends meet. I'm sure his company is not alone.

 

Exactly! Even if you use the rebate to pay bills rather than buying new stuff, it will help the economy, although perhaps not exactly the way the government intends.

[cin]

It starts getting phased out at $75k for individuals and $150k for couples.

 

 

Oh Goodie! We will still get some then :D And coming in June, gee, that's just in time for vacation....or the kitchen project, or maybe I can finally get my blackberry...Or, >sigh< maybe we can just pay off some debt. :( But that's no fun!!!!!!!!!!!!!

[Amy in NY]

and we are one of those who will get a lot back. I would rather see them reduce the tax rate...and entitlements...

 

If anyone needs a quick lesson in this, take a look at the Irish economy. It is booming now and is being credited to a lower tax rate (not sure if they cut entitlements - that's my own political philosphy.)

 

Now, let's see if I can find the bOOkshelf post again...

 

amy

[mysticamethyst]

Thank you for pointing out that paying our bills will still boost the ecomny, I now understand. But, I still have to agree with the masses, this isn't a good thing over all.

[Sandra in NC]

Oh Goodie! We will still get some then :D And coming in June, gee, that's just in time for vacation....or the kitchen project, or maybe I can finally get my blackberry...Or, >sigh< maybe we can just pay off some debt. :( But that's no fun!!!!!!!!!!!!!

I think we'll get it before June. The paper today says checks would be mailed 60 days from approval. We'll probably get it just in time to pay our taxes!

[KristineIN]

We won't get anything, we are also self employed, but either we just don't makes as much as the rest of you or are in a different business, because we don't pay nearly as much. Dh is a self employed painter, but we make enough to get by and that's about all.

 

Kristine

[SFP]

We won't get a dime back. My husband's severance package (his position was outsourced to India near the end of '06) coupled with his full employment in '07 means we made too much for a rebate.

[cricket1178]

Yes, the 2001 rebate was an advance payment, but it was related to the new child tax credit. So while it did reduce the refunds people received in the spring of 2002, it did not reduce them below what they would have gotten had the new tax credit not been passed that year.

 

If this new rebate is passed, it will be a tax cut. It will not reduce your tax refund below what you currently expect it to be. There's no way in heck the government would give all that money out if it weren't a tax cut, because not everyone even gets a refund. And millions of people pay estimated taxes rather than having income tax withheld from a salary.

 

I agree that the rebate is not the best way to improve our country's financial health in the long run. I'd much rather the federal government cut spending and stop getting involoved in matters beyond its constitutional authority. But OTOH, I won't mind having an extra $2,100 that I wasn't expecting this summer.

 

I agree cutting government spending is the best way to solve the problem instead of a rebate, but I'm glad to be getting money for my washer that is about to go out on us!

[Amy in NH]

I heard a piece on NPR last night about where the money goes. The guy being interviewed said the last rebate (2001?) was spent mainly in three areas:

 

1. clothing

2. medical care/related items

3. food

 

Interesting!

[Tammyla]

Well like those sending it, I'm not planning to over think it. Thank you, please deposit this into my account.

[Txmom]

We will all be paying for it in the end, after all it is our money,. Taxes will more than likely go up with the next President.

Yes, nothing is free, there will eventually be a catch somewhere down the line I am sure.:eek:

[Txmom]

really pricey with the money, and it goes back into the economy. Most people will save it or pay bllls , medical. We will not be buying stuff with it. It goes in the savings account for emergencies.:D

[T Baer]

Either it's they give it only to take it back or is it they took it and are giving it back to us...sort of and then will be taking it back again.

We will probably save some and spend some.

[Robin in Tx]

I think that as long as you file a tax return and report at least $3000 in earnings, you will get the rebate. You don't have to make much money to qualify for it.

 

Robin

[AprilTN]

Why am I getting the same rebate as someone who makes half of what I make? We paid in a higher percentage of our income, why are they giving out checks that are across the board the same?

 

It is mind boggling that people don't see this as unfair. When it's time to pay taxes, then I would LOVE to pay the same amount (OR EVEN THE SAME PERCENTAGE!!) as someone who makes "at least $3000 last year".

 

Our income tax system is a joke.

[Amy loves Bud]

Agreeing with Crissy here. It's not a rebate. If it were a rebate, people who do not pay taxes would not get any money, and people who pay a lot of taxes (like Bud and me) would get some of that money back. Instead, we're getting nothing.

 

If I'm going to give my money to someone who needs the help, I'd rather do it myself, rather than have it used in some economic mindgame that, in the end, won't work.

[LizzyBee]

Yes, the 2001 rebate was an advance payment, but it was related to the new child tax credit. So while it did reduce the refunds people received in the spring of 2002, it did not reduce them below what they would have gotten had the new tax credit not been passed that year.

 

If this new rebate is passed, it will be a tax cut. It will not reduce your tax refund below what you currently expect it to be. There's no way in heck the government would give all that money out if it weren't a tax cut, because not everyone even gets a refund. And millions of people pay estimated taxes rather than having income tax withheld from a salary.

 

I agree that the rebate is not the best way to improve our country's financial health in the long run. I'd much rather the federal government cut spending and stop getting involoved in matters beyond its constitutional authority. But OTOH, I won't mind having an extra $2,100 that I wasn't expecting this summer.

 

The terminology I used in my earlier post is bothering me. Just as others have pointed out that this rebate isn't exactly a rebate, it isn't exactly a tax cut either. But my point was that you won't be penalized on your 2008 tax return, and that point still stands.

[SandraDumas]

out of personal debt and car debt and credit card debt...are doing without my car this year which I sold to get us out of financial disaster. We can't afford luxories like cheese every day and clothes when our children grow out of their old ones. INstead we have to wait for hand-me-downs and sales.

 

My dh makes almost that 75 that they say they will reduce taxes. I'm glad he ddoesn't. I would be so angry if we were in that position.

 

I am going without, making sacrifices (of course I do get to stay home with my babies...which I have not had to sacrifice.)...but we do not qualify for anything....and yet I am at Walmart constantly seeing people using WIC and Welfare, buying sugary cereals, tons of clothes, jewelry, soda, pre-made foods, and they are spending MY money doing it.

 

I personally am glad for the 1800.00 we will get, and we are putting every cent of it to debt....but I also worry about wealth redistribution. I'd rather keep my money in the first place.

[lynn]

nt

[umarider]

 

One may ask, what becomes of the monies people are "rebated"? Much of it goes into goods that aren't domestically produced. So whose economy do we stimulate? Bottom line, it's a band-aid which in my opinion only serves to further erode the sensibilities (or lack thereof) of a consumer nation.

 

 

Hear! Hear! I couldn't have said it better!:)

[Robin in Tx]

I'm not sure about the specifics, but I think this is a rebate is being considered a rebate on taxes paid on the first certain amount of taxable income... it's like personal exemptions... we all have the same benefit regardless of our income. Basically, they're raising the floor.

 

Not arguing for or against it... just trying to explain it as I understand it (which may not even be correct! LOL)

[Robin in Tx]

Try doubling that and you'll feel my pain. Of course, those of us citing how much we owe are clearly making a decent income so we can be grateful for that.

 

 

Oh my goodness! If you were at the 25% bracket, that would put you at $200,000 taxable income. Kudos to you and the successful farm!! Whoever said organic farming wasn't profitable needs to look you up for advice!

[Colleen]

It isn't quite as straight-forward as "We owe $50k so we must have earned 200k". The farm is set up as a corporation, and then we're "employed" by the farm. We have been blessed in our efforts, though, that's true. There are actually many more financially successful farmers out there than the media (and the farmers themselves) would have you believe.;)

[Robin in Tx]

That is great news... I'm glad to hear all the doom and gloom from the media isn't exactly true, and that the small farm is still a viable way to earn a comfortable living.