Here Comes Your Stimulus Bonus

[fozzie 41]

I guess its a way to give me more money without the government actually paying for it now. Its a future tax break. I preferred the bush method of giving me a check for $600!

Its actually less effective. Since most people wont consider a check like that as part of their normal income, they tend to splurge on foreign made goods. This way, slightly less money is being taken out in taxes, which will make it more likely that it will be spend on necessities here. Like housing, food or transportation.

Well wasn't stimulating the economy the idea, not paying your gas and electric bill or filling up your car with gas.

Tax breaks of any kind are probably the worst way to stimulate the economy, especially when consumer confidence is not very high. But its a populist measure, to make people happy while working through more effective means to stimulate the economy.

Paying for your gas and electric or filling up your car with gas is stimulating the economy. So is buying a TV made in China. In the big picture, its the global economy that we are concerned about, though most people can't see past their own economic situation or the economy of their particular city or region.

A one time tax refund is not very effective as it only creates a one time jolt, most of which wont get reinvested. Pretty much everyone will take the money and either save it, pay off debt, or use it to fund a large one time purchase. Only a portion of the money used for the one time purchase will get reinvested, and not all of it will be in the US. The rest will be held in reserves by the company, or shareholders, who are not likely to take a lot of risks in reinvesting it with the current economy.

A small tax break over time is more effective as people will see it as more a part of their income instead of a one time payment. With that, the money is more likely going to handle needs and that will tend to keep more money in local economies. Its still not as effective, but more effective than the other option.

Why not put this measly extra amount towards this universal healthcare plan Obama talked about in his campaign?

Tax cuts or tax rebates are politically popular. Even though in the big picture they are not very effective.

But then next year that money goes again and people have got used to their new "wealthy" lifestyle. You live to your means.

[one...two...tree 2,762]

I guess its a way to give me more money without the government actually paying for it now. Its a future tax break. I preferred the bush method of giving me a check for $600!

Its actually less effective. Since most people wont consider a check like that as part of their normal income, they tend to splurge on foreign made goods. This way, slightly less money is being taken out in taxes, which will make it more likely that it will be spend on necessities here. Like housing, food or transportation.

Well wasn't stimulating the economy the idea, not paying your gas and electric bill or filling up your car with gas.

Tax breaks of any kind are probably the worst way to stimulate the economy, especially when consumer confidence is not very high. But its a populist measure, to make people happy while working through more effective means to stimulate the economy.

Paying for your gas and electric or filling up your car with gas is stimulating the economy. So is buying a TV made in China. In the big picture, its the global economy that we are concerned about, though most people can't see past their own economic situation or the economy of their particular city or region.

A one time tax refund is not very effective as it only creates a one time jolt, most of which wont get reinvested. Pretty much everyone will take the money and either save it, pay off debt, or use it to fund a large one time purchase. Only a portion of the money used for the one time purchase will get reinvested, and not all of it will be in the US. The rest will be held in reserves by the company, or shareholders, who are not likely to take a lot of risks in reinvesting it with the current economy.

A small tax break over time is more effective as people will see it as more a part of their income instead of a one time payment. With that, the money is more likely going to handle needs and that will tend to keep more money in local economies. Its still not as effective, but more effective than the other option.

Why not put this measly extra amount towards this universal healthcare plan Obama talked about in his campaign?

Tax cuts or tax rebates are politically popular. Even though in the big picture they are not very effective.

And it's worth mentioning that the Republicans in Congress have been clanging this idea all along...that tax cuts alone will stimulate the economy. In spite of what most economists have said.

Edited March 31, 2009 by Mister Fancypants

[^KK^ 3]

Veri insightful. I think my employer has already made the tax adjustment a few paychecks ago.

[scarry 0]

I guess its a way to give me more money without the government actually paying for it now. Its a future tax break. I preferred the bush method of giving me a check for $600!

Its actually less effective. Since most people wont consider a check like that as part of their normal income, they tend to splurge on foreign made goods. This way, slightly less money is being taken out in taxes, which will make it more likely that it will be spend on necessities here. Like housing, food or transportation.

as a hard working american i take this stimulus package as an insult they give there selves a raise and me as a single american man being a coal miner where there is no easy job is offerd 15 to 20 $ a pay they can keep it they need it worse than me what a joke

[mawilson 2,133]

I guess its a way to give me more money without the government actually paying for it now. Its a future tax break. I preferred the bush method of giving me a check for $600!

Its actually less effective. Since most people wont consider a check like that as part of their normal income, they tend to splurge on foreign made goods.

Why foreign-made?

[Dan J 277]

I guess its a way to give me more money without the government actually paying for it now. Its a future tax break. I preferred the bush method of giving me a check for $600!

Its actually less effective. Since most people wont consider a check like that as part of their normal income, they tend to splurge on foreign made goods.

Why foreign-made?

How much stuff that a person might buy is actually made here? Most consumer goods, while being designed here is often sourced to other countries for manufacturing.

[doodlebugg 10]

So in one year I'll make $1,560 from the additional $30/week. I'll just transfer it each week into a savings account and use that money for a nice little trip somewhere with the husband. If it were a measely $600 check I'd probably put it to bills instead.

[fozzie 41]

I guess its a way to give me more money without the government actually paying for it now. Its a future tax break. I preferred the bush method of giving me a check for $600!

Its actually less effective. Since most people wont consider a check like that as part of their normal income, they tend to splurge on foreign made goods.

Why foreign-made?

How much stuff that a person might buy is actually made here? Most consumer goods, while being designed here is often sourced to other countries for manufacturing.

Specialization and foreign trade are essential to the gloal economy that we live in. Gone are the days when everyone bought local. The cheaper manufacturing in developing nations allows US industry to focus its limited resources on other areas where it excels.

[mawilson 2,133]

I guess its a way to give me more money without the government actually paying for it now. Its a future tax break. I preferred the bush method of giving me a check for $600!

Its actually less effective. Since most people wont consider a check like that as part of their normal income, they tend to splurge on foreign made goods.

Why foreign-made?

How much stuff that a person might buy is actually made here? Most consumer goods, while being designed here is often sourced to other countries for manufacturing.

They might go to a restaurant and "splurge" on an expensive meal.

Or "splurge" on spa treatment or gym membership.

Or an expensive skin care product (some of the best ones are made in the US)

Or a set of DVDs

...

Seriously, man.

[PB&JAM 1]

hey, an extra $15-20 per check will make up for the hike in the price of fags.

[thetreble 19]

My paycheck was adjusted last pay period and I get an extra 30-odd dollars per check. I can always use any little bit of money I can I guess. I'm not going to complain about it.