Lately i've been hearing alot about these tax rebates that are coming. My parents and my boss have mentioned it. I decided to do a little research on the subject. First of all the tax rebates have began to be distributed today. The amounts are being given based on the amount of people in a family. This entire event is a attempt to stimulate the economy. I personally think this will not work. People that I have talked with say they will be saving the money. Kinda counterproductive to the idea. It is good for the citizens if they recieve the money. However this brings up another point. Who is recieving the money. This is not a negative statement. I just wonder if everyone will get money. It seems that the amount will be massive if everyone gets a equal amount. The news article I read says it will be going to 130 million households. I dont think that counts everyone. I just think it will be a failure as a economic growth starter. I hope to hear everyones 2 cents
article: http://www.usatoday.com/news/nation/2008-04-28-tax-rebates_N.htm?loc=interstitialskip
5 comments:
Wow, to be totally honest this is the first time I've heard about these tax rebates! But, I do believe you're right about it be sort of counterproductive due to all of the people beginning to save money (who wouldn't with all of the news stories about our grim economic future?) Yet, not all families live like our neighborhood might, and having the chance to have that much more money might give them a chance to buy something they've needed but haven't before been able to afford. Just an idea, but I guess we'll have to see how it turns out!
Well, I suppose not everyone can save all the money. People are going to spend at least some of the money, and if the household is in significant economic need, they might not even be able to save all of it. I don't know exactly how much this will work to stimulate the economy, but I don't see it being a complete failure, just not a complete success either.
This is the first time I've heard about it too but these tax rebates seem like an interesting idea. If this is the governments way of jump starting the economy, I am not convinced that it is a very good idea. I agree with Scott and think it would be interesting to know more details about what and to whom the government is giving this money.
I think this rebate method of stimulating the economy will be more likely to work if they give the money to lower income families who are living from paycheck to paycheck because they may be more likely to spend the money on necessities like clothes and food, their spending may help stimulate the economy. But giving the rebates to middle class or upper class people probably wont help the economy much because they will just save the money since they already have enough to buy everything they need...but that's just a guess, it will be interesting to see how this rebate thing affects the economy. I think most people will save the money because of fear of a recession, which, as Scott said, will be counterproductive.
This is the first time I've heard of tax rebates also, but I think that it sounds like a good idea. It probably won't cause a huge boost in the economy but the more money people have, the more money they can spend. Yes, some people will probably save the money but I'm sure many other households will spend some, if not all of it. It will just be interesting to see if it has a positive affect on the economy.
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