Am I the only one who this makes a little nervous. Especially lump sum payouts that increase the deficit like the one described below.
“Under the deal, nearly everyone who earned a paycheck in 2007 would receive at least $300 from the Internal Revenue Service — $103 billion in total. Most people would receive rebates of $600 each, or $1,200 per couple. Families with children would receive an additional payment of $300 per child. Workers who earned at least $3,000 last year — but not enough to pay income taxes — would be eligible for $300. “
Overall, 117 million families would receive rebate checks, including 35 million with earnings too low to have qualified under an earlier Bush proposal that limited checks to income tax payers. Rebates would be limited, however, to single taxpayers with adjusted gross income up to $75,000 — up to $150,000 for couples. Above that, the benefit would phase out until hitting zero for individuals with adjusted income of about $87,000, $174,000 for couples.
The money would be borrowed and would increase the federal deficit. ” – Washingtonpost.com
Ok, so people get a little check and spend it on who knows what. So a bunch of stores have a sale and people go and blow them there, a couple of folks delay having their gas cut off by an extra couple of weeks. How much stimulation will the economy REALLY get at the expense of the overall budget especially while we are in the midst of a long, costly war.
I am still mulling over this one. What do you think?
i think it’s stupid (for lack of a better word). if the goal is to stimulate the ecomony, why not bypass the step of sending checks out for people to spend on who knows what, like you said, and just put it directly into the economy? i mean, what is someone really going to do with a $300 check? make a car payment? buy some clothes? I’m not saying people can’t use a few extra dollars, but what is the REAL benfit going to be?
See, that’s the same thing I was thinking. I know it sounds very “right” of me, but its one of those plans that just doesn’t pass the sniff test with me right now.
False hopes for an economy that is doomed!
Give people money so they can spend it instead of using it to pay down their credit card debt that they incurred while trying to keep their head above water because of the mortgage crappola.
Um…yeah. Whatever.
I don’t care since I don’t qualify.
What would those who are dubious of the proposed stimulus package offer as an alternative?
@LH
I will honestly admit, I am not sure. But I still question a one-time, several hundred buck pay out. Who knows, in a perfect world, it could put some food on a couple of folks table, perhaps help to pay a winter gas bill. But it still doesn’t seem to add to anything long term for those who are really hurting.
I have an alternative to the Bush stimulus plan: Howz about having Haliburton and Big Oil unass some of their undeserved, fleeced profits and put that into the hands of every American. They can clearly better afford it.
Bush is one dumb mother. . . .
I think that a couple of hundred bucks could do wonders for a lot of people. It sounds like most of us are at the higher income level (I think one commenter said she wouldn’t even qualify) so a few hundred dollars sounds like nothing. But if I’m understanding the payout correctly, wouldn’t your average qualifying couple with two kids get a total $1800? That could pay childcare for almost half a year (it’s possible), which means maybe that mom could work, bring in a second income, better food on the table, etc. Sure it would help the gov’t out also since now she would pay taxes and spend money. So it all sounds like a good idea.
What disturbs me the most is that the government wants us to go out and spend the money, not use it like in the example I mentioned. Which means that yes, maybe the lights won’t get cut off this month, but next month, you’ll be sitting at home with groceries in the fridge but no electricity to keep it fresh.
If I get a penny, it’s going to pay down my student loans or a credit card bill.
I think Barrister has it right. I just think it’s so funny how no one seems to be affended that our Oil companies are getting away with murder. I feel sorry for the middle American family. And to think, that is who really settled America.
What a failed administration this has been.