Spending my hypothetical “tax rebate”

According to the New York Times, the House approved a quick-fix tax rebate:

As it was presented on Thursday afternoon, the package calls for workers who paid income taxes to receive $300 to $600, and couples to receive up to $1,200 — plus $300 more for each child. The stipend, which some lawmakers were calling a “tax rebate,” would be subject to income limits so that the wealthiest taxpayers would not receive it. Payments would go to individuals with adjusted gross incomes under $75,000 and couples with adjusted gross incomes under $150,000.

I do not think tax rebates are any kind of solution to the general problem of the faltering middle class, and I suppose it isn’t meant to be, anyway. When you’re bleeding from an artery, even a band-aid is better than nothing.

Here’s the problem: the smart thing would be to hang on to that windfall and try to earn a few percent’s worth on it. But that defeats the economic purpose of a rebate, and unfortunately we always have something that $1800 could be put toward, like the $800 in repairs my car is waiting on.

So what do you think: spend it or save it?

January 25, 2008 | Filed Under check it out, news

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Comments

15 Responses to “Spending my hypothetical “tax rebate””

Jen on January 25th, 2008 4:53 pm

I’m figuring we’ll probably spend it. On daycare. Woohoo. The first-grader can’t exactly stay home alone all summer, you know.

Of course, that’s not going to do anything to stimulate the economy, it’ll just keep us out of hot water for one summer. Which is something, I guess.
toyfoto on January 25th, 2008 5:21 pm

I’m gonna save it … might even stick it in my IRA to stick it to the GOP.

Fmkers.
Izzy on January 25th, 2008 6:40 pm

I’m debating between socking it away in my IRA or using it to pay for a few months tuition and summer camp. One thing I won’t be doing with it is stimulating the economy by going shopping. But don’t tell Shrub, k?
matt on January 25th, 2008 10:59 pm

Okay, so I hate Mike Huckajesus, but he had a point: “So…we’re going to borrow rebate money from the Chinese, so that poor people will go buy Chinese shit with it? Whose economy are we stimulating?”

I wonder if I could move our household to Canada for $1200.
kelly on January 26th, 2008 9:11 am

i am a bit with matt here. it’s a strange thing.
Keely on January 26th, 2008 12:09 pm

We’re going to spend some and save some.
jana on January 26th, 2008 1:13 pm

Mine is already spent. I wanted new furniture..this gave me the excuse. (Bad Me…I know!)
Lisa the domestic diva on January 26th, 2008 4:09 pm

I just don’t get it why they are giving out these rebates. It would be way smarter to pay down our national debt. And the income limit is too low here in NYC…our garbage men make $80K w/ overtime. and most of them are working paycheck to paycheck unfortunately.

We’re probably not getting a rebate as are very few of my neighbors—and we can all use it…KWIM?

With friendship,
Lisa
Nikko P. on January 26th, 2008 7:42 pm

LOL!
I’ve been hearing about this money.
Is the money taxable?

Best Wishes,
Nicky
supa on January 26th, 2008 10:05 pm

yeah, freaky good point, matt.
supa on January 26th, 2008 10:06 pm

p.s. nicky, i don’t *think* it’s taxable. at least it certainly shouldn’t be.
matt on January 26th, 2008 11:02 pm

that said, i’m not going to send our check back. so not only am i no help to you, i don’t know whether part of a bathroom remodel or a nice shiny canon 5d would look better on the monthly balance sheet
birdgal on January 28th, 2008 12:56 pm

My house needs new windows AND a new roof, so I think I know where this is going….while I’d love to save it just to stick it to the lawmakers who think it’s a good idea (I don’t frankly, but as matt said, I’m not giving it back either), right now that’s just not an option.
kerflop on January 28th, 2008 2:18 pm

I’m morally opposed to this short term fix as it is funded by tax dollars. If we get one we’ll use it to purchase food storage and emergency prepardness stuff, since we’re all cheerfully preparing for a recession. Fun, no?
Jen on January 29th, 2008 7:26 pm

I really, REALLY want to save mine. But we have a mortgage, and it’s calling to the ol’ check book as well.

Seems like it would be a better use of our nation’s leaders’ time to look into oil/gas prices, and other rising energy costs. Because it still seems like if anyone’s making money hand over fist, it’s the oil companies. (Yet gas prices are rising faster than ever…)