My Life Trip

My thoughts on . . . well, pretty much everything.

Bush’s Economic Stimulus Plan . . . January 24, 2008

Filed under: money,Politics — jden723 @ 11:07 pm

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. ” –

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?