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This has been a big week for “economic stimulus.” The Fed announced an emergency rate cut on Tuesday and yesterday Congress unveiled a tax rebate package. But will it really help? The numbers are different from the $500 tax rebate that was being floated earlier.
Instead, some working Americans will get $300 and others will get $600. Some joint filers will get $1,200. It sounds nice, but as I’ve been saying for a while, it’s not really practical. Our government is already running a deficit and most people don’t spend tax rebates and refunds on things that would help them financially.
The government just wants us to spend the money, rather than use it to shore up our personal finances. This bothers me. The way to “stimulate the economy” is to spend the money. This is not good for personal finances. Instead, you should pay down debt or save/invest it.
Besides, didn’t we do this five years ago? Funny how we’re right back in the same place. I guess that economic stimulus didn’t change things in the long run. How will this be any different. It probably won’t.
How will you spend your tax rebate?
Thanks for sharing! My rebate has already come and gone. It’s helping pay for us to put in a yard!
I am going to use my tax rebate on fuel costs with the price of gas escalating over the past few months. I do like the idea of tax rebates.
1434 days ago
[...] The phrase of the week is “economic stimulus.” Several efforts are being made to save the economy and try to prevent a recession. On Tuesday there was an emergency Fed rate cut, designed to help inject confidence into the stock market and that will provide relief for those with ARMs. Additionally, this week it was announced that bond insurers will also likely get help in the form of a bailout. And the biggest of these measures is, of course, the tax rebate. [...]
1567 days ago
[...] at b5media Taxgirl has written a number of posts on this topic. Miranda at Yielding Wealth has another [...]
1567 days ago
[...] The phrase of the week is “economic stimulus.” Several efforts are being made to save the economy and try to prevent a recession. On Tuesday there was an emergency Fed rate cut, designed to help inject confidence into the stock market and that will provide relief for those with ARMs. Additionally, this week it was announced that bond insurers will also likely get help in the form of a bailout. And the biggest of these measures is, of course, the tax rebate. [...]