Thursday, January 24, 2008

The Tax Rebate

We have tax rebates! So, a number of us will be getting a little money back from the government. Wheee!
Individuals who pay income taxes would get up to $600, working couples $1,200 and those with children an additional $300 per child under the agreement. Workers who make at least $3,000 but don't pay taxes would get $300 rebates.

Interesting bit there, people who don't pay taxes are going to get a tax rebate? Huh! Meanwhile, people who pay the most in taxes are going to get diddly squat.
The rebates would phase out gradually for individuals whose income exceeds $75,000 and couples with incomes above $150,000, aides said. Individuals with incomes up to $87,000 and couples up to $174,000 would get partial rebates.

The one-time spurt in retail sales from the rebates may please retailers, briefly, but can't sustain the broader economy. Making the tax cuts permanent would have a long term impact on the economy. Handing out tax rebates without fundamentally lowering tax rates is a waste of money. Fortunately, it won't hurt economy. It's just pure election year politics, placate the masses.

1 comment:

Anonymous said...

I heard the president signed the stimulas plan bill. I am sorry fellas but I need alot more to get stimulated than 600 dollars. That Doesn't even cut half of a months rent for me. I would love to buy a home in New York City but I don't think 600 dollars is ok for a down payment? Too late I missed the subprime nonsense. I am going to cash my 600 dollar check and ask for all 1 dollar bills and I am going to spend between the hotdog stand and the nudybar around the corner. God Bless America and save us from Paulson