Posted on 02/13/2008 2:53:59 PM PST by BradtotheBone
WASHINGTON — President Bush signed legislation today to send $300 to $1,200 rebate checks to millions of Americans as a "booster shot" for the economy.
Rebates are to go out beginning in May to taxpayers and low-income people, including seniors living off of Social Security and veterans who depend on disability checks. Businesses would get tax breaks for investing in new plants and equipment.
"I know a lot of Americans are concerned about our economic future," Bush said. "Our overall economy has grown for six straight years, but that growth has clearly slowed."
Several dozen members of Congress, including House Speaker Nancy Pelosi, stood on the stage behind Bush as he signed a bill to fend off a possible recession. He said the stimulus package was achieved after he talked with leaders of Congress in January about "whether or not we could come together to provide a booster shot for our economy — a package that is robust, temporary, and puts money back into the hands of American workers and businesses."
Most taxpayers will receive a check of up to $600 for individuals and $1,200 for couples from the Internal Revenue Service, with an additional $300 per child. People earning at least $3,000 and those who owe little or no taxes would get $300 for singles, $600 for couples. Those making more than $75,000 and couples with income exceeding $150,000 are to get smaller rebates — $50 less per $1,000 they make over those thresholds.
"Americans struggling with the high cost of energy, groceries and health care will soon receive relief, and our economy will get a timely, targeted, and temporary boost — thanks to our bipartisan stimulus package," Pelosi said. "This package gets money into the hands of Americans struggling to make ends meet, helps families with children, cuts taxes for small businesses that will create new jobs and stimulates our slowing economy."
Economic analysts generally believe the $168 billion package Bush signed will help prevent the current downturn from ballooning into a crisis. But if the rebates don't spur a consumer spending spree strong enough to cure what ails the economy, Congress is ready to throw more money at the problem. Bush said the measure was "large enough to have an impact."
Democrats and Republicans who put aside deep differences to craft the plan and rush it to enactment joined the president at the White House for the signing ceremony in the East Room. The package is designed in part to inoculate lawmakers from voter blame should the economy continue to lag as the November elections bear down.
Congressional leaders already are considering more economic rescue measures that could include transportation spending, unemployment aid and measures to address the housing crunch that's at the root of the current economic doldrums.
In the meantime, economists are debating how effective the rebates will be, with critics arguing that debt-burdened consumers will use the money to pay bills rather than spending the checks and spurring growth.
An Associated Press-Ipsos poll found that only 19 percent of those surveyed said they planned to spend their rebate checks. Forty-five percent said they would pay bills, while 32 percent said they planned to invest the money.
The last time the government sent out rebates, in 2003, recipients spent a little less than a third in the first six months, and about two-thirds within the first year, according to findings by the University of Michigan Survey of Consumers, cited by congressional tax analysts. After rebates were sent out in 2001, just 22 percent said they would mostly spend them — rather than saving the money or using it to pay off debt — and only one-third of the rebate was spent in the short run, according to the same study.
They're still enamored with Keynes's "marginal propensity to consume." According to this theory, the higher your income, the less of any additional income you'll "spend." Instead, you'll save it. As one democrat senator years ago put it with regard to a tax cut, the rich will only squirrel it away in stocks and bonds. Since the intent is to get people to spend, the money goes to those with a high marginal propensity to consume.
Karl Marx would be proud of our Presidente and our Congress Critters.
Well someone has to work to pay for all of this. We can’t all get “free” stuff. It wouldn’t be so bad if people came up and thanked the tax payers but no..they get that 5000 plus unearned income credit every year and think it’s from the “government”. It’s like Santa Claus. We work to give our kids stuff at Christmas and then the credit goes to some fat man in a red suit.
Well then give us Walmart gift cards:’)
I agree. Like Reagan said...Government is not a solution to our problem, government is the problem
Put the money against your credit card debt or mortgage (for a guaranteed rate of return equal to interest rate).
That’s the best investment right now.
I’m still waiting to find out if this is really a REBATE, or if it is a Pre-bate like the last “rebate” which was in fact simply an advance on whatever refund you might be entitled to.
What fun! Giving away taxpayers’ money!
Married and right at $150k. Thank god I half-assed it at work the last 6 months lol. Can I buy you a beer?
If we get a rebate...and I don’t think we will..it’ll be used to pay quaterly estimated taxes.
That's where half of ours is going-the mortgage. One of us gets to spend for fun and one of us doesn't. ;)
I am considering putting it toward a new furnace, though. That would hit on a few things: we'd be spending, but will get a tax deduction on it the next year for energy savings, if the Congresspersons allow that again.
What douche bags!
And what pays for this? Money borrowed from ChiComs?
What douche bags!
Oh, wait! Put only $150 into your right pocket, send the other $50 to the frigging bureaucrats in DC who allow you to do this!
Sure. Let’s put that rebate money to good use! (burp)
Worst legislation Bush has signed...who advised him on this one...rebates are a pseuodo-Keynesian approach in my book....
Worst legislation Bush has signed...who advised him on this one...rebates are a pseuodo-Keynesian approach in my book....
I would much rather just get a break on my income taxes. If I receive the $600 election-year bribe, I figure that it will pay less than 25% of my property taxes for 2008. Take it out of one pocket, put it into the other, then take it out again to pay a different set of bureaucrats. Looks like lose/lose to me. And, has anybody asked if we have to pay taxes on it next year?
That's my plan.
L
I would much rather just get a break on my income taxes. If I receive the $600 election-year bribe, I figure that it will pay less than 25% of my property taxes for 2008. Take it out of one pocket, put it into the other, then take it out again to pay a different set of bureaucrats. Looks like lose/lose to me. And, has anybody asked if we have to pay taxes on it next year?
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