Congress announced a revised tax package yesterday. People who make at least $3k and pay taxes would get back $600 back and $1200 for couples, and each child would be $300 extra. People who don't pay taxes but make at least $3k would recieve $300 back. The rebate phases out for individuals who make more than $75k and couple making $150k.
Lower than the package suggested by Bush, this new rebate of taxes cover more families who do not pay income taxes. Hence the lower rebate amount instead of $800/$1600 initially suggested.
What to do with this money? Well the government is hoping we'll spend it to boost the country. To help the economy grow. However, I'm not sure I understand how we're growing the economy by causing the government to take on more debt by giving back taxes while still spending foolishly?
Since 2000 there is no balanced budget. The US government is in a huge deficit and they keep digging themselves deeper. I wonder how can a government expect people to be fiscally responsible when they themselves show no leadership or example? The example set by our government is one of get into debt and someone else will hopefully bail you out. And it's not your fault there's debt, it's someone else's fault/problem.
But seriously, will this really help people? Will it really stimulate the government? Perhaps making serious changes to our government spending, telling people that it's wrong to be in debt, and showing how to stick to a budget would do more consumers good than just handing out checks which don't solve the problem.
This money if we ever see it won't change our lives. It's a balm on the problem our government is ignoring. If they really wanted to help they would start looking at the real problems, not just a band-aid sticker solution.
What will I do? I have no idea, when and if I see the check I'll decide then. Until then it's just the current administration prentending to care about the economy. Until I see changes and a real budge why should I listen to this administration about my finances? I don't think their succeding at all.
I hope everyone who gets the rebate uses it to pay off debt or save, rather than spending it like the government expects.