I haven't been reading through DP like I used to, but I'd like to post my opinion on this upcoming "tax rebate"... I was in a discussion the other day with a guy that thought it was a great idea... Personally, to me it just seems like the government is forcing a loan onto the population... We're getting money now, but it's not free, we're going to wind up paying it back over time (possibly with interest) through our taxes... How do the rest of you feel about it? There's some logical thinkers here, I'm looking forward to hearing other points of view
Inflation..inflation..inflation... I expect prices to go way up this summer (including stock market prices) but this will be accompanied by a falling dollar so there won't be any real gains in investment value - just a better hedge against inflation than cash. Of course, it might help out a few people who are sitting on the very edge of going under, but $600 ? That's not going to help much against a huge mortgage payment or the 10% interest student loans they've been selling lately.
If you have a $600 credit card debt that you're paying the minimum on you're spending about $20 a month paying off debt. If you pay it off, you now have $20 a month in freed up cash that can be spent on anything. If you put the money in a bank, the bank will invest it or loan it out. So, unless you put the money in your mattress, it's going back into the economy one way or another. And that's what the government wants. Yes, we may be taking out a loan to pay for it, but the government isn't giving more back than it collected in taxes. So, if the government would balance it's budget, it wouldn't be a loan. Also, the dollar has gone up slightly recently. I see this more as an apology by the government for stealing all our money. I don't really care what effect it has on the economy.
I will swiftly spend my rebate check on coke and heroin for my speedballs, and maybe pick up a few Chinese trinkets.
Glad you will have fun with it! I was just going to put my refund towards my credit card debt. I read this: This is not a done deal, they are still not sure how much we will get. $800 would be nice though.
Bush is signing it today. The deal is $600 for those who are single, $1200 for couples and $300 per child. So if you are married with two kids you get $1800. If you don't make enough to pay taxes but filed a tax return you can get $300.
Nice. I am single with no kids, so I'll just get the $600. I'm happy with that even. Do you know when we will get it?
As a boost to the big economy its been overstated by politicians. Its about $160 billion for a $13 trillion economy. Still its great. The money going back to individuals and families will help. It doesn't go to bigger earners - I think no refunds for individuals with more than $75,000 and couples with more than $150,000 in income or something in those ranges. That means that those that need it will get it. There is some kind of cash or direct tax credit for small businesses that make investments. I hope that is written in a way so that part of the stimulous is real and focused on US spending. There is money direct for certain vets and low income people. All that suggests the funds going back to people will be spent directly. Hope it helps. But realistically a spending boost of $160 for a $13 billion economy spread out in bits of $300/$600/$1200 has to really churn and be spent by the recipients and respent by the businesses that get the money to have any impact that is significant. I think it is more politics than substance. On the negative side...and a different issue is how credit card issuers have quickly ramped up fees. I hope that gets quashed right away. The institutions are quickly trying to make money. Doing it in the face of a bad economy, doing it in the face of recently dropped lower rates to institutions is a slap in the face of the US population. Got a credit card and use it? Better check your rates right away.
The checks should start to be in the mail by May. My credit cards all have low fixed rates. My credit is excellent so if they don't give me a good deal I tear it up.
I think it's not going to have any real effect. Not when the whole package is less than 2% of your economy. I suspect most people are either going to use it to pay off some debt or just buy stuff (a.k.a. sending it to China)
Unless people are flapping their arms to fly to china to buy stuff, they're supporting american workers. It doesn't matter where the products were made. The money is going in American cash registers paying American workers. And, as I mentioned, paying off debt frees up cash which can then be spent.
Correct iul, everyone that I know is using it to pay off debt or to have an bit of an extra cushion (peace of mind financially) for a month or two.
I should get $1800 and I'll invest the money offshore to help protect me from futher dollar devaluation
Why not get a bag of silver coins instead? When Argentina crashed people couldn't access their overseas money or withdraw from banks.
This. The key is getting a low APR, something so many Americans forget in favor of rewards programs or signing bonuses. Fools.
The rebate is an election year gimmick. The US has a 400 billion deficit and its sending out rebate checks. I don't understand that one.