I just can not believe how many people are going to be livid this time next year. You know that stimulus packate---the one where people are going to get free money? Well, the full story isn't out yet. This is actually an advance on next years refund. So, those people who are used to getting a $300 refund, but get $1500 in May...next year will only be receiving $1500 next year.
Worse, those that usually receive a small refund (many single americans) will not see a refund at all next year...or even possibly owe. Let's not talk about those that actually do owe, they could see themselves owing double what they have in past years.
It is a disgrace that neither the media nor the government are telling the American people this little known fact. Instead they are hoping that people, thinking this is "free" money will go out and spend away. By the time people find out how this will affect them, the money will be long gone -- most likely on outstanding bills.
Instead of playing with the minds and pockets of the average American, why not do something that will truly help the economy. Why not subsidize oil and gas prices? By cutting the price of gas, the price of food and other goods would decrease. At the same time, there would be more money lining the pockets of the taxpayers allowing them to spend more money on things they have had to cut back on since the gas prices have skyrocketed. This would also encourage people to take vacations this spring and summer and have more money to spend while there. Subsidizing the price of gas would help everyone, individual and business alike.
So spend that "check" wisely, and watch the gas prices go even higher, while our economy continues to spiral out of control.
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That would be a dirty trick if the government is doing that? Where do you get your info?
From the bill itself. It states that it is a credit and and advance on 2008 return.
That is terrible! Is there anything to be done to fight that?
No. They did something similar a few years ago, when they gave checks out at the end of the summertime and didn't tell people. When they got their taxes done they learned it was an advance on the child tax credit.
I remember that. I was so pissed about it. What a crock of crap. Thanks for speaking up! I appreciate it.
I think the stimulus package is stupid. Why?
In real life money doesn't grow on trees. It only grows on trees in the Sims 2, and it's an item that is only unlocked as your Sim earns personality points and job advancement. My point is and age old cliche:
Nothing in life is ever free.
The so-called "stimulus" is just an advance of the taxes on your labor that the government will charge in the next fiscal year. So essentially you are paying yourself in the present, but you will be working/taxed for it in the future... and this little move will probably raise your taxes. When will people wake up and realize that money will never fall from the sky into your wallet without some kind of catch. Don't even get me started on the days that I've wasted in my working life to pay for Social Security that I will never see. And for those of you who think you will... in 1962 or 1966 I believe the government set a legal precedent stating that you cannot sue for Social Security just because you have paid money into the system because it is not 'yours'.
I wrote a 15 page paper on the injustices of Social Security, and until I wrote that paper it had always been my idea to sue the govt. for it.
Good blog.
It does refer to the money we are getting as a credit but never states it is an advance on the 2008 return. Please get the facts straight.
This is the only part I can read that may be confusing:
‘‘SEC. 6428. 2008 RECOVERY REBATES FOR INDIVIDUALS.
‘‘(a) IN GENERAL.—In the case of an eligible individual, there
shall be allowed as a credit against the tax imposed by subtitle
A for the first taxable year beginning in 2008 an amount equal
to the lesser of—
‘‘(1) net income tax liability, or
‘‘(2) $600 ($1,200 in the case of a joint return).
Look at the title, it does not state Recovery Rebates for the treasury. Please post exactly where you got your info from.
Q. Is my stimulus payment taxable?
A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.
Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?
A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.