I have been leery about writing this post, because, I am not sure i know enough to talk about it. However, after hearing a couple of local talk shows tackle the topic, I believe I am better informed at least enough to write this post in a certain style and format, that won't get me in trouble.
First, 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 earn at least $3,000 but don't pay taxes would get $300 rebates. Personally, I am not sure how that is a rebate. If you didn't pay taxes, then it's not a rebate, instead it's redistribution of wealth.
Pelosi, D-Calif., agreed to drop increases in food stamp and unemployment benefits during a Wednesday meeting in exchange for gaining the rebates of at least $300 for almost everyone earning a paycheck, including those who make too little to pay income taxes.
"I can't say that I'm totally pleased with the package, but I do know that it will help stimulate the economy. But if it does not, then there will be more to come," Pelosi said.
- The Associated Press
OK, now, that we know some of the important details, I would like to ask the same thing that one of those local talk shows did. How will you spend your "tax rebate"?
For me, if I even get a rebate, because of my IRS debt, I will use it to pay down my debt. If I don't, I assume that it will be a credit to my IRS debt (anyone know?). I would love to say that I was going to put it in savings, but fact is I must get these debts paid down.
Now, I know that it's not what President Bush wants, since I am not spending the money on a new TV or some other item, but I don't care. You can say I don't care about the economy, but as a personal finance blogger and a follower of Dave Ramsey, if we really want to help the economy, we will stop spending more then we make (more on that later).
So I ask again, what are you going to spend your tax rebate on?
---
go ahead share your thoughts with me now.
What will I spend my rebate on?...NOTHING. Every penny into the savings account.
ReplyDeleteI've been thinking about it and of course I'll be putting it to debt.
ReplyDeleteOne thought though is that by putting it to debt, you are stimulating the economy by putting more cash into a business that had debt on the books. And by doing that, the business does not have the expenses of product to produce and sell you. They get to keep their product to sell to another.
Let's all convince folks that paying off the debt will stimulate the economy even more than the "rebate"
I am thinking about setting it aside for my grand daughters education. After all it is her money I am borrowing. You can read my sarcastic opinion on the whole thing at
ReplyDeletewww.prolepticlife.wordpress.com
I am going to save it in case I have to pay it back on my 2009 taxes - kinda like what happened in 2001. In 2001, it really wasn't a rebate, but an advanced refund on your 2002 taxes. I'd be afraid to spend it.
ReplyDeleteIf your numbers are what actually ends up passing, I would get $1800.
ReplyDeleteAnd 100% of it would absolutely go into the debt hole. I'll help stimulate the economy when I'm out of debt.
SAVINGS!!!It will sit in my ING account earning 4.1% interest!
ReplyDeletePaying off debt if I have any by the time the check gets here in June. Otherwise into IGObanking to see if I can partially offset inflation.
ReplyDeleteAs for how it will affect filers who owe, it won't as far as the process.
ReplyDeleteThe rebate checks will be issued separately, probably after the initial April 15 deadline.
It won't affect your current tax return, regardless of whether you owe or are expecting a refund of 2007 taxes already paid.
So go ahead and do your 2007 taxes as usual this filing season.
The rebate checks will be issued based on your return information from last year, your 2006 filing data.
As for how the rebate process will affect your tax filing this year, it won't, regardless of whether you owe or are expecting a refund of 2007 taxes already paid.
ReplyDeleteThe rebate checks will be issued separately, probably after the initial April 15 deadline.
The rebate checks will be issued based on your return information from last year, your 2006 filing data. So if you had three dependent kids last year but one of them is now on his or her own, you'll still get the extra $300 for claiming that child last year.
So go ahead and do your 2007 taxes as usual this filing season.
thinking of throwing every penny at my mortgage. i bet that surprises you. but the federal reserve just lowered rates. ok, so it's harder to earn a 5% return now. but i can earn one right away, by paying down my mortgage.
ReplyDeleteSince I already live on less than I make, I'll be spending my rebate. Half of it will go to the charity I support and the other half will spruce up my upstairs bathroom.
ReplyDeletei'll just be starting out with my emergency fund, so it's all going into a savings account. a 5.05% apy complete savings account with e*trade, that is :-)
ReplyDelete