Tax Rebate?

So apparently there is talk amongst Congress and the White House regarding President Bush’s economic stimulus plan on how to provide immediate relief to the country which could already be in a recession. The current proposed plan will provide a $600 check to any individual who paid tax last year, or a $1,200 check for couples. Those who who did not pay federal income taxes but did earn an income greater than $3,000 will get a $300 rebate per individual or $600 for a couple. It is reported that only those who earn up to $75,000 individually or $150,000 as a couple will be eligible for the rebate. If the plan does not face a lot of hurdles in the House or in the Senate, people could start receiving their check as early as June, which for “immediate relief” is still half a year away.

It is too early to say whether a flat rebate like this will work but certainly if people go out and buy things it will be a great quick fix. However, if people just use the money to pay down their debts on their credit cards, it will fail because all this money will be used towards something they had already spent and it will not be the shot in the arm that the government is looking for. So we will see how this works out, but still plenty of time to go before anything is decided on who gets what and when.

Happy spending those who get a check!

4 Replies to “Tax Rebate?”

  1. Sounds like rent money.

    I don’t think anything makes me more nervous than when the Government starts sending ME checks. You know the system is in the red at that point.

  2. Leave it to Pelosi + Republicans to compromise on idiocy. You had to know this was going to be a bad idea when they announced it.

    After all, we’re in a “CREDIT crisis”… don’t you think the banks are going to take aggressive notice of this and go after defaulters of loans and so on to get some that rebate cash? That might just give the economy a little boost, because the subprime gamblers get a little something, but I don’t see it helping terribly much.

  3. yeah, this won’t help. when shit is this bad, why would a low income family spend found money on a new car (or anything of that sort)?

    the rate cut will probably help more in the sense that ARMs will reset at a lower rate and fewer people will default.

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