Comments on: My Thoughts on the Possible Tax Rebate http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/ Our Journey to a Debt-Free Life Sat, 21 Nov 2009 08:35:00 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Brian http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-376048 Brian Sat, 09 Feb 2008 15:47:15 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-376048 Don't be fooled. This isn't a rebate; it's a cash advance. From the actual text of the actual bill just apporved by both House and Senate: "n 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 ... " "Credit againat" being the key words there. Don't take my word for it; read the bill yourself: http://thomas.loc.gov/cgi-bin/query/F?c110:5:./temp/~c110ETxJw6:e1754: Don’t be fooled. This isn’t a rebate; it’s a cash advance. From the actual text of the actual bill just apporved by both House and Senate:

“n 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 … ”

“Credit againat” being the key words there. Don’t take my word for it; read the bill yourself:

http://thomas.loc.gov/cgi-bin/query/F?c110:5:./temp/~c110ETxJw6:e1754:

]]> By: Bob http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-339833 Bob Tue, 22 Jan 2008 20:40:42 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-339833 EVERYONE LISTEN TO MIKE!!!!! The last time, they gave out $300. Then they adjusted the tax brackets to increase everyone's tax due the next spring. Net, all they did was advance you $300 that you had to pay back a few months later. So be careful with any plan that Congress might pass. You may be required to repay it again, just like last time. "Best" case, you'll be paying for it through taxes to support interest payments on government debt for the next xxx years (where xxx approaches infinity). If this is the case, and if you have CC debt, it wouldn't be a bad thing to use anything received to pay down debt. Add to your snowball, but always be prepared to pay back out. In the meantime, though, you can get those interest payments down a little. But if they're doing the same thing as last time, the last thing you want to do is spend any of the money. You'll owe it back later, whether you realize it or not - in which case they just tricked you into spending money you otherwise wouldn't have. I'm highly suspicious that this is what they're trying to do.... CNN kept carefully wording it as "an advance on next years' refunds", not a rebate or handout. EVERYONE LISTEN TO MIKE!!!!!

The last time, they gave out $300. Then they adjusted the tax brackets to increase everyone’s tax due the next spring. Net, all they did was advance you $300 that you had to pay back a few months later.

So be careful with any plan that Congress might pass. You may be required to repay it again, just like last time. “Best” case, you’ll be paying for it through taxes to support interest payments on government debt for the next xxx years (where xxx approaches infinity).

If this is the case, and if you have CC debt, it wouldn’t be a bad thing to use anything received to pay down debt. Add to your snowball, but always be prepared to pay back out. In the meantime, though, you can get those interest payments down a little.

But if they’re doing the same thing as last time, the last thing you want to do is spend any of the money. You’ll owe it back later, whether you realize it or not – in which case they just tricked you into spending money you otherwise wouldn’t have.

I’m highly suspicious that this is what they’re trying to do…. CNN kept carefully wording it as “an advance on next years’ refunds”, not a rebate or handout.

]]> By: Jen http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-339351 Jen Tue, 22 Jan 2008 14:55:52 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-339351 It will be nice to get a check, for whatever amount, and I can use it build up my emergency fund, but overall I think it's a bad idea. It's a band-aid on a bigger problem. Plus, as someone else pointed out, depending on your tax situation, you just end up paying it back later on (that's what happened to me the last time). It will be nice to get a check, for whatever amount, and I can use it build up my emergency fund, but overall I think it’s a bad idea. It’s a band-aid on a bigger problem. Plus, as someone else pointed out, depending on your tax situation, you just end up paying it back later on (that’s what happened to me the last time).

]]> By: Shana http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-338526 Shana Tue, 22 Jan 2008 04:27:47 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-338526 While I like the idea of getting $600 or $1k (the amounts I've heard mentioned for a single person -- I think the amount is double for a couple), I really don't want rebates to be issued. It's just a sign of how bad our economy is doing and it's far too small a bandaid for a economical wound that is enormous. While I like the idea of getting $600 or $1k (the amounts I’ve heard mentioned for a single person — I think the amount is double for a couple), I really don’t want rebates to be issued. It’s just a sign of how bad our economy is doing and it’s far too small a bandaid for a economical wound that is enormous.

]]> By: 20 Something Lady http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-338110 20 Something Lady Mon, 21 Jan 2008 22:00:48 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-338110 I hope that we do get it. We have to pay this year (well every year pretty much) so some money back would be exciting. This could really help my emergency fund goals for the year. I hope that we do get it. We have to pay this year (well every year pretty much) so some money back would be exciting. This could really help my emergency fund goals for the year.

]]> By: Toxic Money http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-338027 Toxic Money Mon, 21 Jan 2008 20:43:08 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-338027 I wrote about it on my blog, too... I am with you. I'd pay off some debts before I'd go shopping. I wrote about it on my blog, too… I am with you. I’d pay off some debts before I’d go shopping.

]]> By: SavingDiva http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-338025 SavingDiva Mon, 21 Jan 2008 20:40:53 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-338025 If the rebate goes through (and I qualify), I would just toss it in my emergency fund. No need for an LCD TV. If the rebate goes through (and I qualify), I would just toss it in my emergency fund. No need for an LCD TV.

]]> By: Mike http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-337866 Mike Mon, 21 Jan 2008 18:49:25 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-337866 I didn't read the article, but I assume that this "tax rebate" will be the same as the last..basically its "X" amount of your tax refund in advance. Of course, if you really wouldn't have gotten a refund, it will INCREASE the amount you have to pay the next year...but hey, this is America, we actively discourage such things as "foresight" and such. ;) I didn’t read the article, but I assume that this “tax rebate” will be the same as the last..basically its “X” amount of your tax refund in advance. Of course, if you really wouldn’t have gotten a refund, it will INCREASE the amount you have to pay the next year…but hey, this is America, we actively discourage such things as “foresight” and such. ;)

]]> By: Janelle http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-337778 Janelle Mon, 21 Jan 2008 17:45:06 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-337778 Personally I am praying we get the rebates, and the bigger the better. We have earmarked a percentage for our savings account, a percentage for debt and a percentage for vehicle tune-ups. Sorry, no outlandish spending going on here either. Personally I am praying we get the rebates, and the bigger the better. We have earmarked a percentage for our savings account, a percentage for debt and a percentage for vehicle tune-ups. Sorry, no outlandish spending going on here either.

]]> By: pfmoron http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-337635 pfmoron Mon, 21 Jan 2008 15:56:49 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-337635 Way to stick to your convictions Dancinghawk. "I am so personally offended by this administration that in a show of protest I am going to accept their gift and use it for my own personal gain." That'll show 'em. Way to stick to your convictions Dancinghawk.

“I am so personally offended by this administration that in a show of protest I am going to accept their gift and use it for my own personal gain.”

That’ll show ‘em.

]]> By: Dancinghawk http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-337588 Dancinghawk Mon, 21 Jan 2008 15:12:57 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-337588 The problem with the 'take this money and go spend it' is that it's indicitive of the sort of mentality that created a lot of our ecconomic problems in the first place -- both on a personal scale and a larger social scale. This annoys me so much that if I do get a surprise $800 check in my mailbox, I'm half-minded to donate it to the local homelessness program. Although in practice, I would probably add it to the debt snowball like a lot of you guys. (Maybe 50/50) The problem with the ‘take this money and go spend it’ is that it’s indicitive of the sort of mentality that created a lot of our ecconomic problems in the first place — both on a personal scale and a larger social scale. This annoys me so much that if I do get a surprise $800 check in my mailbox, I’m half-minded to donate it to the local homelessness program.

Although in practice, I would probably add it to the debt snowball like a lot of you guys. (Maybe 50/50)

]]> By: DM http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-337582 DM Mon, 21 Jan 2008 15:09:30 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-337582 This so called "rebate" is a horrible idea. Our country is already buried under a mountain of debt. It's as if Bush is taking a cash advance from a credit card, to be paid by our grandchildren. What a disgrace. This so called “rebate” is a horrible idea. Our country is already buried under a mountain of debt. It’s as if Bush is taking a cash advance from a credit card, to be paid by our grandchildren. What a disgrace.

]]> By: Jim ~ mydebtblog.com http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-337565 Jim ~ mydebtblog.com Mon, 21 Jan 2008 14:56:25 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-337565 No matter how you look at it, money is meant to be spent. You either already spent it through a credit card, you can save or invest it to spend later, or give it away so someone else spends it. I posted news of this first thing Friday morning when I heard about it. It will be somewhere between $500-1000 per person, so possibly $800 ($1600 married) as long as you meet the requirements. It's a tax rebate which my understanding is basically the government is giving you your money back and telling you to spend it. I think we should have the right to do anything we want with it. If I want to pay a credit card with it, it helps the economy by helping my personal economy. No matter how you look at it, money is meant to be spent. You either already spent it through a credit card, you can save or invest it to spend later, or give it away so someone else spends it. I posted news of this first thing Friday morning when I heard about it. It will be somewhere between $500-1000 per person, so possibly $800 ($1600 married) as long as you meet the requirements. It’s a tax rebate which my understanding is basically the government is giving you your money back and telling you to spend it. I think we should have the right to do anything we want with it. If I want to pay a credit card with it, it helps the economy by helping my personal economy.

]]> By: Alison http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-337528 Alison Mon, 21 Jan 2008 14:25:21 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-337528 Even if you use it to pay down credit card debt, you're still keeping the money moving, which is what economists want. The theory is, if you use it to pay down credit cards, you'll have that much more credit available, and eventually you'll make purchases with that available credit (even though we know you, specifically, won't!). :) Also, the CC companies will get that money from you to turn around and apply to their company however they see fit (employee raises, new marketing, etc.). The "worst" thing we could do with the money is stick it in our sock drawer and forget about it. Even if you use it to pay down credit card debt, you’re still keeping the money moving, which is what economists want. The theory is, if you use it to pay down credit cards, you’ll have that much more credit available, and eventually you’ll make purchases with that available credit (even though we know you, specifically, won’t!). :) Also, the CC companies will get that money from you to turn around and apply to their company however they see fit (employee raises, new marketing, etc.). The “worst” thing we could do with the money is stick it in our sock drawer and forget about it.

]]> By: Frugal Dad http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-337522 Frugal Dad Mon, 21 Jan 2008 14:24:18 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-337522 I wrote a rather detailed post on my site why I think the rebate plan will fail, economically. From a personal finance perspective, a $1600 family tax rebate would be a nice boost to my debt snowball! I wrote a rather detailed post on my site why I think the rebate plan will fail, economically. From a personal finance perspective, a $1600 family tax rebate would be a nice boost to my debt snowball!

]]> By: Bradley http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-337490 Bradley Mon, 21 Jan 2008 14:00:19 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-337490 Another vote for straight to credit card debt. Another vote for straight to credit card debt.

]]> By: mbhunter http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-337293 mbhunter Mon, 21 Jan 2008 11:06:33 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-337293 Yep, I'm with you. Paying down your debt is a great use of the money. Yep, I’m with you. Paying down your debt is a great use of the money.

]]> By: Kim http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/comment-page-1/#comment-337248 Kim Mon, 21 Jan 2008 10:35:07 +0000 http://www.bloggingawaydebt.com/2008/01/my-thoughts-on-the-possible-tax-rebate/#comment-337248 I have to agree with you -- more bang for the buck to pay on the credit card. If there is a rebate, we plan to add it to our emergency savings account. I did have a few minutes of dreaming of what I could buy though... Luckily, my husband is the voice of reason :) I have to agree with you — more bang for the buck to pay on the credit card. If there is a rebate, we plan to add it to our emergency savings account. I did have a few minutes of dreaming of what I could buy though… Luckily, my husband is the voice of reason :)

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