President Bush is suggesting a $145 billion rebate to taxpayers in order to stimulate the economy and avoid economic recession in 2008. About $100 billion is reserved for individual tax payers and the rest is for businesses.
This could come to the masses in the form of a $800 tax rebate check for each individual or $1,600 per household. However, a tax rebate may not be the best way to get money into the hands of who will spend it (and stimulate the economy as intended). Many who have a lower income and an inability to save thanks to (for whatever reason) paycheck-to-paycheck living conditions do not pay taxes, and would receive no rebate. If the government wants to get money into the hands of people who will spend and stimulate the economy rather than save, then it should somehow include these individuals.
If I receive a rebate check, I won’t stimulate the economy. I’ll put it in the bank and use it towards my 2007 tax bill. I’m sure most readers of Consumerism Commentary will do the same or pay off debt. A smaller portion will use the funds to buy something they’ve been eying or go on vacation, but not many. Get the “economic stimulus” to those who will stimulate the economy.
Here are some articles from around the web.
Speaking of tax rebate checks, Mighty Bargain Hunter will save his check for later. Eloquently, “It’s like a bar offering one on the house at last call. Everyone’s happy for another 20 minutes, and then people get to stagger home and wake up the next morning, hung over, to face the stress and the weight of payments that remained in the background while they were forgetting about life for a while.”
Nickel wonders how much top tip a cab driver.. He received a cold shoulder the other day after tipping 20 percent, and he doesn’t know why. Was it the amount? I think 20% for a cab driver is more than fair, but I don’t travel by taxi often. There’s an interesting discussion in the comments; there are always strong opinions surrounding the art and necessity of tipping.
Wise Bread offers an interesting article about inflation. Rising prices is just a symptom of inflation, not the definition. Prices fluctuate due to forces other than inflation, as well. Philip argues that on the whole, standard of living is decreasing. “It’s always hard to tell the difference among these things at the time; it only becomes clear after the fact. Fortunately, you can keep yourself on the right track by making the most cautious choices. If prices go up, look for alternatives. When there are no alternatives, buy less.”
Single Ma is charting the course for her next career move. I’m contemplating some changes at the office as well, so perhaps there will be more news as that plays out in the next few weeks. Single Ma has selected four leadership and management courses to attend.
Published or updated January 22, 2008.