How to spend your tax rebate

[Disneyoverload42]

The intent is for people to spend it on new items, not to retire debt. I completely understand some people have tougher situations. That was me a few years back. I am just hoping that everyone, who can afford to spend it, does spend it.

I can proudly say my soapbox is Made in the USA!!

I disagree. It's a peter/paul thing though - Using my situation as an example, currently my grocery budget is between $300-$400 a month - because of my debt load. If I pay off debt, I have more money to spend on groceries (and believe me with a teenage boy that IS where it would go!) Once my debt is paid off (except for my house & SLs), I will have $400+ a month to pump into the economy EVERY month and since DH and I only (and for the last 4 years) use cash it is going toward the economy and not toward a bank's bottom line. Currently our disposable income (after debt and necessities) is $40 a month. I think long term we would help the economy more being out of debt - just our situation.
As for buying American - Mitsubishi and Toyota are both made here. Probably other brands too. It's not a simple statement to make in today's global economy. Some Saturns & Ford's have Toyota motors in them... It's all too confusing to keep track - we just have to do what is best for our situation and chug on.

 

[Toby'sFriend]

The intent is for people to spend it on new items, not to retire debt. I completely understand some people have tougher situations. That was me a few years back. I am just hoping that everyone, who can afford to spend it, does spend it.

I can proudly say my soapbox is Made in the USA!!

yeah well
I quit using the US Government as my financial planner a couple of years ago.

We're happier this way.

My contribution to the US Economy is that I don't file bankruptcy every 7 years, I don't sign up for subprime loans that I can't afford, I pay all my bills before they are due, I invest in the US stock market, and I pay a huge percentage of our family income in taxes on a yearly basis.

I will use my money my way with a clear conscience.

 

[SpaceRangerEric]

I
As for buying American - Mitsubishi and Toyota are both made here. Probably other brands too. It's not a simple statement to make in today's global economy. Some Saturns & Ford's have Toyota motors in them... It's all too confusing to keep track - we just have to do what is best for our situation and chug on.

I agree. You can't go by name anymore. That is why I said Made in USA, not Brand USA. I can own a part of companies from around the world with stocks, and foreigners can do the same with American companies. The whole point of this rebate is to help the American economy. That is why we need to focus on goods and services made in the US even if they are ultimately owned by foreign companies.

 

[EthansMom]

Question here...Because we have no small children living in our household, we didn't get that child tax credit in 2001. I've been trying to read about this one and couldn't figure out if this was for households with children or for everybody who is within the $ bracket.

We didn't qualify for the one in 2001 either. I think there were income limits on it or something. But that one was just a "loan" against taxes you were going to pay that year anyway, so no more money than you would have gotten eventually.

The thing I don't understand about Bush's plan to eliminate the 10% tax bracket is where that money is going to come from? I mean, the federal government isn't going to lower their spending, right? So, for folks to get a tax rebate, someone is going to be paying for it somewhere.

Usually, only lower and middle class families get the tax rebates because they are more likely to spend them. Studies have shown that people with higher incomes tend to save most "extra" money. In order to stimulate the economy, the rebate needs to be spent. If you take $1000 and spend it at Walmart, for instance, then Walmart is able to pay their Greeter, and the Greeter can then go spend his/her paycheck at the grocery store, and the grocery store can then pay the Cashier, and the Cashier can spend his/her paycheck at Walmart, etc....

 

[staceyfe]

I (and I am proud to say my son also) drive ONLY American made vehicles (GM as matter of fact). We try to buy American but it has gotten harder through the years.

We are a Chevy family, and when I bought my 07 Equinox it stated on the window sticker that the motor was manufactured in Canada. I think this is true w/ motors and transmissions of most GM products. Just because you are buying GM or Ford does not mean it is 100% American made/manufactured.

 

[dvcgirl]

The intent is for people to spend it on new items, not to retire debt. I completely understand some people have tougher situations. That was me a few years back. I am just hoping that everyone, who can afford to spend it, does spend it.

I can proudly say my soapbox is Made in the USA!!

And think about how ridiculous "the intent" of this "stimulus" package is. Out of one bubble in 2001 and right into another fueled by a lax federal reserve and an incredibly cheap money supply. So we're left with a housing market that is as bad as that in WW II, a savings rate that equals that of the Great Depression, trade deficit, budget deficit....I mean, what more can the government do to mess things up? This is pure politics....nothing more. They're all trying to out-do each other now..."Did I say 70 Billion for the stimulus....I *meant*, 700 Zillion dollars!!"

Now they're going to print even more money, even though the money supply has increased by 15% last year alone (inflation anyone?), add to the deficit and send $800 to most Americans and imply it's "Un-American" to pay down your debt? Insanity.

Keep in mind, that there are estimates that the first go-round of this type of plan did very little if anything to spur on the economy. Some estimates are that only 1/3 of those rebates were spent in a timely manner. In 2001 we had 1.6 Trillion dollars of consumer debt and just six years later that number is 2.5 Trillion dollars. A good deal of that will go to paying down credit card debt.

Why is it that our Free Market Capitalist President is all for creating bubbles but can't let the market work things out when they burst? We either take the pain now, or take much more pain later. I'd prefer taking it now and getting it over with.

And then when the each American either spends, saves or pays down debt with a tiny bit of debt with that $800....then what? I hope that Stimulus Team is working on that. Maybe they can come up with a Super-DUPER- Stimulus plan!!

 

[momof3littlelilos]

Any idea when the checks will go out?

I plan to be one of three things with the check.

A. Be a responsible adult - use it towards my son's tuition that way I'll be a month ahead or use it toward a SAT prep class next fall.

OMG - I was just trying to figure out where I'd get SAT prep course $
for DS.
Good, now that I have something "responsible" to spend it on I feel better.

 

[Toby'sFriend]

Do you think my DB who is disabled & received SSI benfits & files every year but only makes about $7K so he pays no taxes would not qualify ? He could use that $ for so many essentials that he can't afford now.

Well keep in mind that what is on the table right now is simply the Republican President's proposal. What is finally passed will most likely be some sort of compromise from the Democratic controlled House and Senate and the President. Social Welfare type of relief will most likely be added in by the Democrats sometime over the next week.

I'm sure it is very difficult for him right now. High inflation in necessities such as food and energy prices always hits the lowest income levels the hardest.

 

[dvcgirl]

I'm sure it is very difficult for him right now. High inflation in necessities such as food and energy prices always hits the lowest income levels the hardest.

And this is why lower and middle income Americans will probably get the bulk of this money.....they'll spend it.

I've read that they'll have a problem using that 10% tax bracket though, because families of 4 making $25,000 to $40,000 (which amounts to up to 50 million people apparently), won't get a full rebate under this plan. They don't pay enough in taxes to get through that bracket due to write-offs. The Dems won't let that go through.....so they may have to use payroll taxes instead.

 

[neatokimmo]

Hmmm...I wonder if I'll even get it? I have an adoption credit that wipes out my tax liability.

If I go get a check, it will go into my ING account for the next baby.

Do you get $$ for both you and your children?

 

[dvcgirl]

Hmmm...I wonder if I'll even get it? I have an adoption credit that wipes out my tax liability.

If I go get a check, it will go into my ING account for the next baby.

Do you get $$ for both you and your children?

Well, keep in mind that this plan isn't finalized by any means. But the plan that they're floating out there would be that you need to have working income and filed a tax return. Currently, you also need to have paid enough tax to get through the 10% tax bracket, which is $8,000.

Again, this thing isn't finished yet. The Dems will want many more goodies that line up with their political platforms....like money for unemployment and heating bills....Repubs want tax breaks for business. I wouldn't count my chickens just yet on this thing....

 

[momof3littlelilos]

And this is why lower and middle income Americans will probably get the bulk of this money.....they'll spend it.

I've read that they'll have a problem using that 10% tax bracket though, because families of 4 making $25,000 to $40,000 (which amounts to up to 50 million people apparently), won't get a full rebate under this plan. They don't pay enough in taxes to get through that bracket due to write-offs. The Dems won't let that go through.....so they may have to use payroll taxes instead.

I was about to comment on this very thing. According to Bush's plan the money wouldn't get into the hands of low income and moderate income families. As you said, and from CNN:

"Who would get it
Democrats could get on board with an income tax rebate if it's fully refundable, meaning that everyone with earned income would get the full rebate, even if they didn't make enough money to owe income tax, said Furman.

Otherwise, roughly 40 percent of tax filers (which is more than 50 million households) would get only a partial rebate or no rebate at all, according to the liberal Center on Budget and Policy Priorities.

A significant portion of that 40 percent would be families of four making between $25,000 and $40,000, the CBPP said.

There are a few ways that could be prevented, Furman said.

One way is to offer tax credits, a dollar-for-dollar reduction of your tax bill. If it's refundable, it means you get the credit even if your tax bill is $0 or something less than the full credit.

Another way is to have the rebate be a payroll tax rebate. The payroll tax - 6.2 percent of your wages - is what's taken out of everyone's paycheck to fund Social Security, no matter how low your annual income.

A payroll tax rebate would not affect your Social Security benefits or the long-term solvency of the entitlement program, Furman said, because it would really serve as a tax credit. In other words, money from your paycheck would still be taken out and put towards Social Security, but the federal government would send you a check that would serve as an advance on a refundable tax credit on your tax return."

I keep thinking I understand the plan, then I read something that contradictors what I thought I knew. I guess it's just too early to know who'll get what. As it stands with the presidents/Republican plan, we probably wouldn't get anything...which is weird because we're supposedly the target spender family.

 

[HaleyB]

With all the talk of us getting a tax rebate in order to stimulate the economy, I would like to offer a suggestion. In order to get the maximum benefit, we should spend that money on American made goods and services. Disney is a great place to spend that money.
Spend a little extra, or give a little bigger tip, while at Disney to keep the money moving in the domestic economy.
If you are going to buy goods, try to buy American made products to support your fellow American workers.

Disclaimer: I am not Bob Iger trying to get you to spend more to help our bottom line, but I am a stockholder.

Almost everything in WDW is made in China. I looked and failed to find a single made in the USA item in the America pavilion at Epcot.

 

[livndisney]

Almost everything in WDW is made in China. I looked and failed to find a single made in the USA item in the America pavilion at Epcot.

And not all things made in China are "bad".

 

[patsal]

Don't know that we would get anything, but if we did I'd just put it in savings--I 'm thinking I'll have to pay it back sometime anyway with higher taxes in the future to offset what they gave me now.

 

[MiniGirl]

If we get anything, it will be used to pay our ever-increasing insurance premiums and property taxes. Doesn't that sound sexy?

 

[stahshee]

yeah well
I quit using the US Government as my financial planner a couple of years ago.

We're happier this way.

My contribution to the US Economy is that I don't file bankruptcy every 7 years, I don't sign up for subprime loans that I can't afford, I pay all my bills before they are due, I invest in the US stock market, and I pay a huge percentage of our family income in taxes on a yearly basis.

I will use my money my way with a clear conscience.

If we did get some sort of extra money in June/ July. It prob will go towards our heating season for the winter.

 

[ceecee]

I haven't paid much attention to this, but I'm thinking I read somewhere it was only for those who made under a certain amount. Anyone hear about that? I thought it said $110,000 was the max you could make and still get the refund.

 

[problemchild718]

Ours will be deposited directly into our American bank (hopefully that will help the American economy) and for some car repairs to our local auto shop

 

[ehstrojette]

I will use mine to put in a new toilet and bathroom floor then the rest will go towards Christmas.. this past year we didn;t think there was gonna be a christmas for the kids but God provided the money(about 125 on each kid) plus other people buying so our kids did fine. I want to make up for it this year and that would help out alot!!