Tax rebate? No thanks
My recent column advising people not to spend the tax rebate and to use it to better their personal finances, generated feedback:
“ Bravo! Right on!!! You should encourage your editor to re-run the advice when the checks are being mailed." — Jeff
“Your recent article on the rebate is spot on. The root of the perceived problem is lack of demand for goods and services. “Free money“ is sending the wrong message to the consumer, store owners, and global markets. Yes, there was a short spike this week with the announcements of rebates, etc. But the deeper problem is over-reaction by the Federal Reserve. Lowering the interest rates in a knee jerk reaction is not strategic and only delays the inevitable pain any economy (going through a natural contraction) must endure.
“Recessions are not all that bad; pretending, wishful thinking, and band-aids do not help in a recession that is occurring right now. The stock market for some unknown reason seems to be the health meter of the American economy. Maybe rebates should be spent on learning exactly what equities are and are not. Will rebates help the poor get a better job? Will rebates make the unemployed feel better? How about the average two parent working family that is bumping up to or in the AMT plan? How many of these checks will go for alcohol, cigarettes, guns, or gambling? Did anyone think of the unintended consequences of free money?
“One way for demand to increase for goods and services is through fair and meaningful tax cuts. If one reviews the increases to State and Federal taxes, one would see a system of aggregate negative impact on growth opportunities for business and most importantly a forced retarding of consumer demand. Something has give in a recession. Rebates may help the alcoholic for a week or two, a gambler for a day at the track, or a smoker for a few months, but at what cost?
“I don’t want to sound all negative, because some of the rebates will go to good causes and help at least for a short term families that are really feeling the pinch. The answer however, is never in free money give-a-ways! It is a slap in the face of hard working folks that do save for tough times and are prepared to buy the necessities and forgo on the luxuries in order to avoid unnecessary debt.
“Lastly, is this the beginning of a series of free money give-a-ways? Will young people begin to depend on the rebates as a source of regular income? What impact does this have on Social Security? Why now? Is there anyway to stop this rebate proposal from happening? Something is intuitively wrong with free money give-a-ways (because there is a price to pay at some point).
“The public deserves to be better informed: the rebate remains a debate." — Mark
“Will I spend my money? If I don’t turn it back to the treasury out of moral reasons, it’s already spent. I will use it to pay down debts; I won’t spend it on anything unplanned. It’s not the job of the government to grow the economy. Only businesses can do that, and I know I don’t have to tell you that.
“Remind me again? Which Constitutional Amendment was it that guaranteed the right to a growing economy?
“I have questions about the plan. What is the logic of not providing rebates, from MY money, to people that rely solely on Social Security? And, will the checks be considered taxable income for any class of recipient, and why?" — Claude
“Hi, I will tell you one thing the people making over 200k like myself are the ones really getting screwed here.
"First we have to deal with this stupid minimal tax law that’s been killing the middle class society since its inception…To boot, we are the bracketed ones who pay more taxes than any other class. Yes, the upper class pays too but they get many more breaks than everyone else. So who gets screwed, middle class does.
"Are we getting anything from this so called stimulus packaged. No, we get faded out. Yea now that’s what I call fair. We pay the higher mortgages. We are still paying our bills on time. And for doing that, what do we get in return? Nothing. It’s like the government just wants us to fade out till their is just upper and lower class.
"Sorry I’m on a rant here but I have had it with the real rich getting much richer. Can anyone just say flat tax? It’s got to be better than what I’m paying now which is almost 40% when all is said and done." — Paul
