Free Money?!?!?

Anthony Marrone · 01-18-2008, 07:48 PM

Open thread for thoughts on Bush economic stimulus proposal. All politics aside, I like money in my pocket. Period. I'm open for debate though.

rstlne · 01-18-2008, 09:02 PM

It'll cause more inflation. If everyone gets more money, then there'll be more money chasing the same supply of goods and prices will rise. Also, can the Federal government really afford to do that? It's already $9.2 trillion in debt!

girlfromsouth · 01-19-2008, 01:23 PM

I don't think that it's going to do anything, on a huge scale, to help the economy that much, in the sense of, I don't think it's going to ease the mortgage crisis or make gas or milk cheaper. However, I will take money if the government wants to give it to me.

beren · 01-19-2008, 04:28 PM

It reminds me a bit of those "free" checks your credit card sends you. 0% APR for six months, but after that they start charging you hefty interest.

Except in this case, the credit card is China.

Xin Lu · 01-19-2008, 08:26 PM

I don't think everyone will get a rebate. From my impression of the news they want to put the money in the pockets of the lower income folks so that they spend it as soon as they get it. I think Bernanke's words was something like those who live paycheck to paycheck will spend this rebate and stimulate the economy. I don't think it's enough to offset the trillions of losses in the financial industry, though.

Miss Rosie · 01-19-2008, 10:21 PM

Quote:

Originally Posted by Xin Lu

I don't think everyone will get a rebate. From my impression of the news they want to put the money in the pockets of the lower income folks so that they spend it as soon as they get it.

Heh. Lower income folks won't get any money. They don't make enough to pay income taxes, even though they pay Social Security taxes. No income taxes, no rebate.

The numbers are deceptive. Most families won't see $1600, and the working poor won't see a cent.

purplefdu · 01-20-2008, 08:00 AM

I agree, We live between the poverty line and the living wage class. We never see crap, despite being the section of soceity that needs it. We don't qualify for the old tax credit, but if we foolishly decided to have kids, we'd be rolling in money and benefits.

Miss Rosie · 01-20-2008, 02:35 PM

From the NYTimes:

"For practical purposes, analysts estimate, a family of four with an income of $24,000 would receive no government payments at all, and families with incomes below $40,000 would at most receive partial rebates. But a household with an income of $100,000 or more could get back $1,600."

and

"The administration’s preferred approach, which Republican lawmakers have already been circulating on Capitol Hill, would provide rebates by temporarily reducing the lowest tax bracket to zero, from 10 percent. The lowest tax rate applies to the first $8,000 in taxable income for individuals and the first $16,000 in taxable income for families.

Democratic staff members on the House Ways and Means Committee said that a family of four would not be entitled to the full rebate until its income reached about $40,000. Almost by definition, the approach would exclude millions of people who were unemployed or living largely on Social Security. It could also bypass families with incomes as high as $60,000, depending on the kinds of tax credits they use to reduce their taxable incomes."

I'm not eligible. Is anyone here?

URL for the full article: http://www.nytimes.com/2008/01/20/wa...te.html?ref=us

Rebecca · 01-20-2008, 03:36 PM

I think I would be eligible. But I paid over $6000 in tax this year. And only $7000 in student loan interest!

rolltimer · 01-20-2008, 04:49 PM

The last time something like this was tried (2002?), my state stepped up to take "their" share of my tax rebate. I don't think I'm eligible this time around much to the disappointment of my state, I'm sure. I do like the idea of reducing the 10% tax rate to zero and I'm not opposed to anyone receiving any of this money whether or not I qualify. However, I don't believe each family having a few extra hundred dollars will help matters since I believe the underlying problem with the economy is not the reduced spending by consumers but their zero and sub-zero savings. If the average consumer has something like $8,000 in credit card debt, how can a few hundred dollars be of any benefit?

01-18-2008, 07:48 PM	#1
Anthony Marrone Member Join Date: Jan 2008 Location: Syracuse, New York Posts: 56 Reputation: (18)	Free Money?!?!? Open thread for thoughts on Bush economic stimulus proposal. All politics aside, I like money in my pocket. Period. I'm open for debate though. __________________ The Frugal Law Student Wise Bread Blog

01-19-2008, 08:26 PM	#5
Xin Lu Wise Bread Blogger Join Date: Jan 2008 Posts: 238 Reputation: (40)	I don't think everyone will get a rebate. From my impression of the news they want to put the money in the pockets of the lower income folks so that they spend it as soon as they get it. I think Bernanke's words was something like those who live paycheck to paycheck will spend this rebate and stimulate the economy. I don't think it's enough to offset the trillions of losses in the financial industry, though. __________________ Blogs I Write: The Baglady @ http://baglady.dreamhosters.com Wise Bread @ http://wisebread.com/xin-lu

01-20-2008, 08:00 AM	#7
purplefdu Senior Member Join Date: Jan 2008 Location: Eliot, ME USA Posts: 533 Reputation: (27)	I agree, We live between the poverty line and the living wage class. We never see crap, despite being the section of soceity that needs it. We don't qualify for the old tax credit, but if we foolishly decided to have kids, we'd be rolling in money and benefits. __________________ Homeward Bound Puppy Blog&Personal Blog best general coupon site & organic grocery coupon help

01-20-2008, 03:36 PM	#9
Rebecca Member Join Date: Jan 2008 Posts: 96 Reputation: (32)	I think I would be eligible. But I paid over $6000 in tax this year. And only $7000 in student loan interest! Last edited by Rebecca; 01-20-2008 at 04:22 PM.

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

01-18-2008, 09:02 PM	#2
rstlne Senior Member Join Date: Jan 2008 Location: New Jersey Posts: 364 Reputation: (115)	It'll cause more inflation. If everyone gets more money, then there'll be more money chasing the same supply of goods and prices will rise. Also, can the Federal government really afford to do that? It's already $9.2 trillion in debt!

01-19-2008, 01:23 PM	#3
girlfromsouth Member Join Date: Dec 2007 Location: Washington DC Posts: 36 Reputation: (10)	I don't think that it's going to do anything, on a huge scale, to help the economy that much, in the sense of, I don't think it's going to ease the mortgage crisis or make gas or milk cheaper. However, I will take money if the government wants to give it to me.

01-19-2008, 04:28 PM	#4
beren Member Join Date: Dec 2007 Posts: 53 Reputation: (17)	It reminds me a bit of those "free" checks your credit card sends you. 0% APR for six months, but after that they start charging you hefty interest. Except in this case, the credit card is China.

01-20-2008, 02:35 PM	#8
Miss Rosie Senior Member Join Date: Jan 2008 Posts: 101 Reputation: (27)	From the NYTimes: "For practical purposes, analysts estimate, a family of four with an income of $24,000 would receive no government payments at all, and families with incomes below $40,000 would at most receive partial rebates. But a household with an income of $100,000 or more could get back $1,600." and "The administration’s preferred approach, which Republican lawmakers have already been circulating on Capitol Hill, would provide rebates by temporarily reducing the lowest tax bracket to zero, from 10 percent. The lowest tax rate applies to the first $8,000 in taxable income for individuals and the first $16,000 in taxable income for families. Democratic staff members on the House Ways and Means Committee said that a family of four would not be entitled to the full rebate until its income reached about $40,000. Almost by definition, the approach would exclude millions of people who were unemployed or living largely on Social Security. It could also bypass families with incomes as high as $60,000, depending on the kinds of tax credits they use to reduce their taxable incomes." I'm not eligible. Is anyone here? URL for the full article: http://www.nytimes.com/2008/01/20/wa...te.html?ref=us

01-20-2008, 04:49 PM	#10
rolltimer Senior Member Join Date: Dec 2007 Location: Alabama Posts: 131 Reputation: (24)	The last time something like this was tried (2002?), my state stepped up to take "their" share of my tax rebate. I don't think I'm eligible this time around much to the disappointment of my state, I'm sure. I do like the idea of reducing the 10% tax rate to zero and I'm not opposed to anyone receiving any of this money whether or not I qualify. However, I don't believe each family having a few extra hundred dollars will help matters since I believe the underlying problem with the economy is not the reduced spending by consumers but their zero and sub-zero savings. If the average consumer has something like $8,000 in credit card debt, how can a few hundred dollars be of any benefit?