Will You Be Getting a $500 Tax Rebate?
January 9, 2008 by Miranda Marquit
Filed under Personal Finance, Taxes, Trends
The economy is looking somewhat troublesome right now, what with stagflation and the possibility of recession. And what are some saying the answer is? Well, many think tax cuts are the answer.
Of course, in the past, this has usually meant tax cuts for the rich and businesses that are supposed to “trickle down” to stimulate the economy and help the rest of us (but usually don’t). However, President Bush, reports the Wall Street Journal, is apparently mulling a $500 tax rebate for all Americans.
The idea is to kick-start consumer spending again. But for most regular folks $500 isn’t going to do all that much. Those in a great deal of debt aren’t likely to be made solvent by $500. That isn’t the goal anyway. The government is hoping cuts and rebates will result in increased spending, rather than saving or debt reduction.
Besides, isn’t our government already running a deficit in the trillions?
What do you think of the $500 tax rebate idea?
I think it is too little to late. The was of ERROR has been too profitable for war profiteers to cease. But, under this regime, I am used to being abused financially. This year 2008 I will pay over $1,200 {over 100% increase in premiums] for Medicare Part B; in 1999 I paid $565 — so I’m not impressed. I’ll take it - but I’m still never voting Rep. again EVER. NEVER.
There are lots of problems with how our economy is set up. War profiteering, as you point out, is one of the biggies. Eisenhower warned us against a couple of things: an economy that depends on the “military-industrial complex” and a president who doesn’t know war presiding over one…
Another problem with the economy is the fact that GREED has taken over at the expense of most “regular folks”
Why should we even expect to get 1 penny from Bush?? He is sending millions of dollars to Iraq.?.?.?….. but where does it go??? My boss has a son in the Navy in Iraq at this time. He had to have her send him some handcuffs and a bullet proof vest to use over there because the “government” either doesn’t provide them with them OR they are low quality IF they are lucky enough to get them!?!?!? So…. where does all that money go?? Our brave men and women deserve ALOT better than that!!! I have the utmost Respect for our men and women that serve our country!!! They ROCK!!!
I’ve heard such stories as well, some of them firsthand from friends/relatives in Iraq, as well as journalists who have been embedded with troops (the journalists, of course, have state of the art protective gear paid for by their corporate bosses).
Unfortunately, some of the money is unaccounted for (the GAO took Iraq war officials to task over poor accounting quite publicly a couple of years ago), and a great deal of the money for “the war” goes to no-bid defense contracts for a variety of things (including a rather poorly Halliburton-run food service program for the troops).
It’s the sad truth, but when anyone in the Bush Administration says “Support our troops,” it’s only lip service.
The deficit is actually shrinking, but I do believe that is caused, in large part, on the government choosing not to spend money on good and worthy causes (health care for low income kids) while they spend on others (iraq, etc.). I agree that this tax rebate is too little too late, but when have we ever known Bush to act in a timely and responsible way? If banks increase their lending, businesses will continue to spend, and Americans will continue to bring home paychecks. Giving folks a bit more money to blow on junk they dont need will not do much to help this country avoid stagnation in the coming couple of years.
I agree, Adam. While the economy would be stimulated by such a tax rebate in the short-term, we would be right back in the same place in another couple of years. And I am very concerned about the priorities in this country…where pork barrel projects get millions upon millions, but we can’t ensure adequate healthcare for children.
You know, I have been on the extremely low end of the income scale, My husband served in the Navy for 9 Years & when he got out, he made $27,000 a year with 3 dependants, ‘02 Ridiculous!!! He has worked his way up, & now makes almost $90,000.. But, by the time he pays, 401k 10%, Health ins. $5000 a year. Dis. Ins.$1000 / year & I forget what our life ins is. oh, and don’t forget regular taxes, we cant win either way..I honestly do not know what the govt. could do but, something needs to happen!! I also think the banks should not give loans to people that cannot afford them, they need to be realistic, for families, remember the unexpected expenses! They need to be financial advocates. Also, a second chance for many people & quit treating people as a # (aka credit score) Is it fair that someone loses their job, gets ill or gets swindled from a finacial institution? Would welcome comments!!!
It is hard stuff, trying to prepare for the futures. And unfortunately our economy now runs on debt, so what may be “good for the economy” may not be good for the individual. I agree with you about the lending. A fundamental change is needed in the way we have come to view debt.
Where is the government getting the money from? Didn’t they do this several years ago and take from Social Security? Where are they going to take from now? Please someone tell me!
I think the gas companies should give us a $600 credit toward gas or toward oil heating bills. That would be a patriotic stand for these companies to support the sole reason why they have done so well.
You are so right Jessica! We are running a deficit. I just don’t think that matters to the folks in Washington anymore. Our debt-based economy thrives on deficit spending — by the government and by individuals.
Yes, we did this before. And it is arguably why we’re in this position. Again.
I like your gas credit idea. Too bad corporate greed gets in the way…
I do not understand where the “lawmakers” are taking the U.S. We are hell bent on taking care of the entire world but when it comes to taking care of our own, things start falling apart. To me this is just a little backwards.
I agree with you James! With the amount of money we throw at other countries’ militaries (and I’m not just talking about Iraq) we could do a lot HERE. But for some reason, influence peddling and what-not is more important.