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President Bush To Give Taxpayers Hundreds to Stimulate Economy

post #1 of 75
1/21/08 at 2:22pm
Thread Starter 
http://www.firstcoastnews.com/news/n...storyid=100263

What does everyone think of this? I remember the last time this happened and it was a relief for us to get it to take care of bills. And is this happens again it will probably be split 1/2 into bills and 1/2 saved. For people I know this is a big relief when this happens just so they can keep up on bills.

So my question is: Good idea or bad and why.
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post #2 of 75
1/21/08 at 2:34pm
Every little bit helps. I don't think it will solve our country's economic problems as far as the long term picture goes- but it sure would be a great help for me right now to have some extra money to put towards our needs/etc.
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post #3 of 75
1/21/08 at 2:49pm
Thread Starter 
Quote:
Originally Posted by StarryEyedTiGeR View Post
Every little bit helps. I don't think it will solve our country's economic problems as far as the long term picture goes- but it sure would be a great help for me right now to have some extra money to put towards our needs/etc.
I agree not a long term solution but something that will happen people catch up on this. I don't however think a lot of people will do as the article implies (spending on just any ole thing). Right now we are catching up on bills and saving all we can so that within the next year we can live some place with better opportunities.
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post #4 of 75
1/21/08 at 3:08pm
It's really Congress passing the bill to give out either the tax rebates, or whatever they decide to do. Of course Bush will sign off on it, but Congress is the real decision maker here.
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post #5 of 75
1/21/08 at 3:33pm
I think that's its Bush's way of admitting that he hasn't been a good president and is trying to end his 8 year reign...errr...term...on a positive note. That way its just something when people look back on these last 8 years they'll say

"oh remember that awful war and how W put the U.S. economy into such a disasterous state of depression?"

"Yea, but he lowered our taxes in last year, so he's not that bad"

"that's true.."

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post #6 of 75
1/21/08 at 3:50pm
Thread Starter 
Quote:
Originally Posted by lunasmom View Post
I think that's its Bush's way of admitting that he hasn't been a good president and is trying to end his 8 year reign...errr...term...on a positive note. That way its just something when people look back on these last 8 years they'll say

"oh remember that awful war and how W put the U.S. economy into such a disasterous state of depression?"

"Yea, but he lowered our taxes in last year, so he's not that bad"

"that's true.."
If memory serves correctly this is the second time in 8 years him congress whatever did this. The last time was roughly 4 years ago. I think it was the summer before his re-election he sent out tax relief checks. Or was it an advance of the child credit or EIC I forget.
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post #7 of 75
1/21/08 at 3:53pm
Sure it is great to be getting money back this year, but it's not going to work. The money we are expecting to get will go to my student loans. I'm not going to go shopping because I don't need anything.
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post #8 of 75
1/21/08 at 4:04pm
Quote:
Originally Posted by Ping View Post
If memory serves correctly this is the second time in 8 years him congress whatever did this. The last time was roughly 4 years ago. I think it was the summer before his re-election he sent out tax relief checks. Or was it an advance of the child credit or EIC I forget.
Probably. Last I remember any tax cuts was in 2001 or 2002 where a family of 4 would only pay $45 instead of $1045. I don't remember if it went through or not. So you could be right.
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post #9 of 75
1/21/08 at 4:20pm
Thread Starter 
Quote:
Originally Posted by lunasmom View Post
Probably. Last I remember any tax cuts was in 2001 or 2002 where a family of 4 would only pay $45 instead of $1045. I don't remember if it went through or not. So you could be right.
Well from what I remember it was before I moved to this town I am currently in but after I moved to Ga. I moved to Ga in the middle of 03. So the check came in either summer 03 or summer 04. And it was a sizable check.
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post #10 of 75
1/21/08 at 4:38pm
What I can't work out is how tax CUTS are going to stimulate the economy?
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post #11 of 75
1/21/08 at 4:50pm
Quote:
Originally Posted by KitEKats4Eva! View Post
What I can't work out is how tax CUTS are going to stimulate the economy?
Presumably, the theory is that it will give people more money to spend. That assumes that they aren't so far in the hole that they have to use it all on debt reduction...
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post #12 of 75
1/21/08 at 4:56pm
Ooooohhh. Ok. Um. Wouldn't it be better to put that money back into the economy in areas where it is desperately needed? Tax cuts drive inflation (we have just been through the exact same debates in Australia where tax cuts and interest rates were a HUGE part of our federal election).

Tax cuts can also mean higher interest rates so where savings come in tax, the money isn't actually going to your hip pocket, it's going to pay higher interest rates on your mortgages, credit cards and other debts, whilst further destabilising the economy.

Sounds like very poor management to me. I agree with what lunasmom said about him trying to go out on a high note. But it's too little too late - and the wrong kind of consolation, too.
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post #13 of 75
1/21/08 at 4:57pm
It will only help the people who really need it for a very short time especially those who are living paycheck to paycheck. The theory is to give out extra money so that that money will be spent now to try to stimulate the economy, but in reality, that money is just going back where it came from. For those who don't need it, they will just invest it and earn interest on it. It will help for a very short time, but it will not fix what will eventually happen if things don't turn around long term.
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post #14 of 75
1/21/08 at 5:06pm
Real simple, Sarah. Our economy is not totally controlled by the government. The way our country was formed, the government is supposed to do as little as possible to interfere in our lives. Private people and companies control the economy, not the government. Put more money in the people's hands and they should spend it, in one form or another, with those private companies. Even if you are getting caught up on bills, you're still giving the money to another company.

If you use the money to pay off a credit card or two, for instance, and you eliminate $50/month in bills, that will give you another $50/month to spend on other needs - groceries, gas, a nice meal out, clothes, etc. If you can spend $50/month on other things, it will help those companies every month. Now put that money in the hands of millions of people. $50/month becomes $50 million/month. THAT will stimulate the economy!
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post #15 of 75
1/21/08 at 5:21pm
Well its a temporary fix. But I feel that most people would blow the extra money - not use it wisely - but its their money

Whatever we get, we'll first give 10% to the church, then the rest will go towards one of our credit cards so we can get another one close to being paid off.
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post #16 of 75
1/21/08 at 5:30pm
I'm wondering if this is a move to win more votes over to the Republican side, maybe to help Bush go out on a more positive note, plus draw some sympathy for his party. I agree that it may stimulate the economy, but not for long, especially with the working people who are just trying to get by, which is probably his target to begin with. Am I paranoid or is this a way to buy votes?
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post #17 of 75
1/21/08 at 5:31pm
Quote:
Originally Posted by valanhb View Post
Real simple, Sarah. Our economy is not totally controlled by the government. The way our country was formed, the government is supposed to do as little as possible to interfere in our lives. Private people and companies control the economy, not the government. Put more money in the people's hands and they should spend it, in one form or another, with those private companies. Even if you are getting caught up on bills, you're still giving the money to another company.

If you use the money to pay off a credit card or two, for instance, and you eliminate $50/month in bills, that will give you another $50/month to spend on other needs - groceries, gas, a nice meal out, clothes, etc. If you can spend $50/month on other things, it will help those companies every month. Now put that money in the hands of millions of people. $50/month becomes $50 million/month. THAT will stimulate the economy!
Well I do hope you're right - I really do. I'm not being sarcastic!!

But the economy of a country as large as yours is never a simple matter. Simple on paper perhaps, or in theory, but in reality things don't work that way. If it were that simple the recent tax cuts you got should have stimulated your economy, but it's just got worse and worse.

Unfortunately most people aren't that sensible so the extra money may not go to helping them pay off their debts. Which leads to more spending, yes, but spending isn't going to help anyone if inflation, interest rates and other factors that are not controlled by private enterprise continue to spiral out of control. Tax cuts are not going to help you if you have a recession (which some economists are predicting is more than a 50% chance) and they're not going to help when people have to foreclose on their mortgages because they can't afford the much higher repayments.
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post #18 of 75
1/21/08 at 5:32pm
Quote:
Originally Posted by ShopCat View Post
I'm wondering if this is a move to win more votes over to the Republican side, maybe to help Bush go out on a more positive note, plus draw some sympathy for his party. I agree that it may stimulate the economy, but not for long, especially with the working people who are just trying to get by, which is probably his target to begin with. Am I paranoid or is this a way to buy votes?
If it is, then it's being used by both sides of the aisle. It's a Democrat controlled Congress, and they are in agreement with Bush in doing something to stimulate the economy even if it is only short term. They are quite willing to cut the checks, just as much as Bush is willing to sign the bill into law.
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post #19 of 75
1/21/08 at 5:37pm
Quote:
Originally Posted by valanhb View Post
. The way our country was formed, the government is supposed to do as little as possible to interfere in our lives. !
hey dont tell dems or the goverment that.
Well that is the way it is supposed to be, But how can we have a goverment like that when people keep expecting mom goverment to hold there hands and do more and more for them.

It really is a sign that tax rates are way to high. The goverment was never supposed to tax the people to the point that they become a burden.

most people will use the money to run and buy some new BIG screen tv.
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post #20 of 75
1/21/08 at 5:50pm
Quote:
Originally Posted by valanhb View Post
If it is, then it's being used by both sides of the aisle. It's a Democrat controlled Congress, and they are in agreement with Bush in doing something to stimulate the economy even if it is only short term. They are quite willing to cut the checks, just as much as Bush is willing to sign the bill into law.
I'm sure it is. I'm not really disputing whose idea it was (for once!) just that it's a good idea at all. And mostly whether or not it will actually stimulate the economy. Economics is one of my degree majors so I'm very interested in this kind of topic!
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post #21 of 75
1/21/08 at 5:55pm
Quote:
So my question is: Good idea or bad and why.
I am not sure if it's good or bad. I mean the world didn't end last time around this happened..Did it?

If it's someone who trying to buy my vote, it won't work. It's my money that I am getting back. So I don't care. I want my money. Better it goes back to me, than a gazzillion other wasteful programs the government likes to flush money down.


I am going to put the money on the new car I just bought. So it will help to pay off a debt.
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post #22 of 75
1/22/08 at 6:15am
I'd be all for tax cuts and a stimulus package if I actually got to see the money. The tax cuts went to the upper class that, and I have a distinct feeling that I won't get a check if they are mailed out.

In the past three years I've paid more in taxes where my father who is wealthy has seen his taxes decrease. I make roughly 35k a year.
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post #23 of 75
1/22/08 at 7:34am
Quote:
Originally Posted by KitEKats4Eva! View Post
I'm sure it is. I'm not really disputing whose idea it was (for once!) just that it's a good idea at all. And mostly whether or not it will actually stimulate the economy. Economics is one of my degree majors so I'm very interested in this kind of topic!
So, I'm confused. You don't think that getting money back into the hands of the consumers would stimulate the economy? I'm not being a smart-butt, I just don't see how taking more money from the consumers and giving it to the government would help the overall economy?
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post #24 of 75
1/22/08 at 7:36am
Quote:
Originally Posted by KitEKats4Eva! View Post
What I can't work out is how tax CUTS are going to stimulate the economy?

Why does that not surprise me?

I commend all the Democrats and the Republicans that vote for this bill.

I wish I understood economics better but it seems to me that NAFTA has been the ruination of our economy. I think there should be VERY high tariffs on all these companies that relocate to third world countries to get the cheap child labor. It makes me sick. But much of it is our own fault as consumers.
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post #25 of 75
1/22/08 at 7:54am
I found this interesting article. This little rebate is nice; I always enjoy getting back some of the money I earned but what really needs to happen in the long run is to make Bush's tax cuts permanent.
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post #26 of 75
1/22/08 at 9:06am
I think that will happen only if a Republican takes office. Most definitely Hilary or Obama will NOT make it permanent.
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post #27 of 75
1/22/08 at 9:17am
I think the smarter thing to do would be to release oil reserves to drop the fuel costs, which will allow people to spend more of their money on other things.

Sionce Katrina, gas and oil costs have skyrocketed, and I honestly think THAT, more than anything else is what has us in an economic stranglehold.

The whole mortgage bailout is idiotic - welfare for homeowners - and an $800 one-time check isn't even a bandaid, it's more like spitting on a wound to stop the flow of blood.
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post #28 of 75
1/22/08 at 9:23am
I think that at this point in our economy we might just have to weather the storm. Some places are going to go out of business, sure, but artificially prolonging their death isn't going to help anything either.

That said, a lot of the job losses around here aren't in businesses that will be helped one bit by people spending some extra money (which is the point of the tax rebate-- they don't want you to save, they want you to spend it immediately... otherwise its completely pointless). Nationwide just cut a few hundred jobs here, at their headquarters, and that tax rebate isn't gonna be spent on insurance. Car companies are cutting down. Same there.

You know what really would help the economy? Universal health care. Companies spend soooooooooo much on the health care for their employees that in many cases that's the only reason they're cutting jobs-- they quit having full-time with-benefits employees so they can have part-time or temporary ones and so not have to pay health care costs.
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post #29 of 75
1/22/08 at 9:28am
Quote:
Originally Posted by Zissou'sMom View Post
You know what really would help the economy? Universal health care. Companies spend soooooooooo much on the health care for their employees that in many cases that's the only reason they're cutting jobs-- they quit having full-time with-benefits employees so they can have part-time or temporary ones and so not have to pay health care costs.

But who will PAY for that? If the businesses don't have to pay, then the employees STILL wind up footing the bills for all healthcare costs.

We are not a socialist country, and I just don't see how socialism and democracy can coexist in this particular country.
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post #30 of 75
1/22/08 at 9:47am
for me personally it would be really nice to get a rebate check I'll be paying bills with it though, not going on a shopping spree

I do agree with Betsy in that gasoline is really my only fluctuating bill, and it is a budget breaker. I think it's just absolutely shameful that oil companies continue to report such large profits while the average working person is being crippled by the cost of getting to and from work
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