The Economic Stimulus Package: False Panacea for America’s Problems
I do not plan on spending my rebate check on shoes, jeans, groceries or any other consumable items that the government would like. I have to go back to the word “rebate� and point out the fact that we will have to pay off this “rebate� in successive years with interest. This cash advance on the national credit card won’t help the economy because there are millions of people like me who have at least $600 of debt to pay down.
As a freelance writer, I have a significant amount of self-employment tax to pay as my annual income increases. I will pay down this tax debt with my rebate check which means the government is giving me a gift card for the Internal Revenue Service. I am sure the representatives and senators I contacted about this ridiculous stimulus package won’t be happy to know that their check is coming back to pay off my tax liability.
I have considered making a large payment on my credit card or student loans with the rebate check. The winner in my personal rebate battle is investors who have put their money in the lender that allowed me to get an education. These investors and lenders would win anyway because they have such large financial resources that they will be able to deal with the brunt of a recession.
The third option I have for the rebate check that will come well into our looming recession is sending it back to the government. I can scroll a long diatribe against wasteful spending across the front and return to sender. I am sure quite a few people will think this act is a sign of insanity but I think it is a great idea if you want to send a personal message.
The whole point of this post is that the economic stimulus package is akin to throwing a rock at an oncoming tank. I know Congress is eager to spend our money without reconciling the books so I think we should see something tangible from this spending. We should see improved highways and infrastructure to decrease the consequences of natural disasters. An investment in science and math education that makes the next generation of students ready to deal with 21st century problems would help our country in the long run. A portion of this money could be spent on alternative fuel investment, business incubators and other programs to revolutionize our economy.
I think we need to commit to one of two paths: investment in the challenges of the next generation or responsible spending. This choice seems to get lost in the mainstream media which assumes that our government will always be out of control. I don’t even want to get into the international issues of America’s debt in this post, I have already gone on too long.
February 22nd, 2008 at 12:05 am
[...] of questioning got more contentious. I liked Hillary’s promotion of green jobs as part of the stimulus package though her platitudes after the fact mean nothing in the end. The 90 minutes of debate got ugly in [...]
June 7th, 2008 at 7:09 am
On approximately 5/1, I received a letter that a direct deposit of my stimulus check would occur on approximately 5/8-ish. It was to be for $900 (I’m a single mom). The deposit never appeared. I subsequently learned that because I used TurboTax to file the deposit would be delayed until early July…
Exceedingly inconvenient, but I’d manage it. Besides, I had a letter in hand quoting eligibility and a $ figure. And my property taxes weren’t going to lien for another couple months.
Yesterday, I had a little extra time, so went fishing for criteria and confirmation of the July date. After an hour of hunting, buried in embedded windows, I found ONE very brief reference to the criteria. I couldn’t believe it. I called to confirm. I learned that the letter they sent me was an error (ya think they’d communicate something like that!) I’m getting NOTHING.
It turns out the plan doesn’t take into account itemized deductions. Oh, like mortgage interest, health care expenses, nor exemptions like a 17 yr-old child. …Given the mortgage and health care discussions and the hype about them, you’d think it would at least allow those deductions. Nope. Its based on gross income, period.
Well, gross income ain’t the be and end all.
40% of my gross income is wiped out by mortgage interest, property taxes, and health care/insurance. Resultantly, my disposable income is less than my parent who is on Social Security. But I don’t qualify.
…Wasn’t this whole thing to provide relief for ills like these?
June 7th, 2008 at 7:51 am
On approximately 5/1, I received a letter that a direct deposit of my stimulus check would occur on approximately 5/8-ish. It was to be for $900 (I’m a single mom). The deposit never appeared. I subsequently learned that because I used TurboTax to file, the deposit would be delayed until early July…
Yesterday, I learned that that letter was an error (ya think they’d communicate something like that!) I’m getting NOTHING.
It turns out the plan doesn’t take into account itemized deductions. Oh, like mortgage interest, health care expenses, nor exemptions like a 17 yr-old child (contrary to belief, they get more expensive not less. Also unless we want to deliberately perpetuate our educational downturn, teens with eyes to contributing to our future tax-base are too busy with school work to also manage family-contributory employment. Consequently, they drain increasingly more family income for tuition/books, even if they opt for a public college).
In So California, on the margin of the cut-off zone, gross income ain’t nearly what it seems.
50% of my gross income is wiped out by mortgage interest/payment, property taxes and health care/insurance. Figure in gasoline to get to my job and my “disposable” (i.e. food, utilities, car insurance, notebook paper for school) income is about the same as my parent who is on Social Security.
…Given the mortgage, health care, and fuel costs discussions/hype, you’d think the stimulus rebate would at least allow these critical deductions.
Nope.