Rebates

Sometimes I get a chuckle out of financial decisions that are two-sided coins. Today the government moved forward with their "let's give the economy a boost" plan to send tax rebates out to people by June 2008. So many things about this intrigue me.

1. Currently they are still fighting as to whether or not this rebate will go to all taxpayers, or all Americans...If they go the "taxpayer" route, do we think this will mean an increase in tax filings from people who usually "squeak" by unnoticed? Will these people even realize you have to file your tax return to get the rebate, or will they just assume it'll be coming to them in the mail and then get pissed off at the "big bad government" when their check doesn't arrive? If they go the "all Americans" route, what kind of back-lash do you anticipate? What in the world will this do to the Republicans? Won't think kill any chance of the election of a Republic president if there is significant back-lash from the sidelines as to why/how non-taxpaying individuals are getting a tax refund? Last I heard the plan was going to half the amount of the rebate and spread it around to non-taxpayers...

2. I like that this theory basically plays on the principle that Americans are bad with their money...at least the lower and middle classes which this rebate is targeted toward (going under the assumption currently that the rebate will phase out at $75,000 and $150,000 for individuals/families respectively). By putting the money in these hands, you are basically assuming what? That's right kids, that it will be spent! Off-hand, how many of these people carry credit-card or other consumer debt? How's their emergency fund looking (got at 3-6 months all safe in an Orange account)? Yeah...the government basically is riding on the fact that Americans will spend this money (much like they do ANY tax refund) on things as opposed to spending it to pay off debt or build up their savings. Like how the recognition of our poor spending habits as a nation are attempting to be used for "good"? It makes me shake my head and sigh. (Hopefully, the tax breaks for businesses will help...)

3. I shudder every time I hear Hillary say E-conomics instead of ec-onimcs...one of my biggest pet peeves...but really, I can't listen to people when they start off anything with E-conomics...it's not like E-mail...or E-business...(I will admit I let my father slide with this one...but really...there are so many words that come out strange when he says them...I just chalk it up to the accent!)

In closing, please "spend" your rebate check wisely...or risk chastising by yours truly.