President Bush and Congress, concerned about the potential cost of government assistant programs should a deep recession hit, are considering offering $800 rebate checks for singles and $1,600 rebate checks for married couples. The idea is that people will spend that money which will boost the economy. The rebate program could cost $150 billion, but the government estimates that spending $150 billion could save them $500 billion. Will it work? It could, so long as people spend the money, but with everyone feeling a crunch, many may use it just to pay bills and save, leaving the government in a potentially worse situation.
Monday, January 21, 2008
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4 comments:
Even if people just use the money to help pay down debt, it would be good for the nation. A tax rebate is just a temporary tax cut. And most everyone is in favor of tax cuts as a means to stimulate the economy.
Any use of the money frees up other money (if you pay a bill, the money you would have used is available for something else) and if it is saved it goes into a bank who then has more money to invest with. That's why tax cuts stimulate the economy and actually generate tax revenue.
i'm willing to accept back any money they took from me. :D
Better a rebate than paying for another bridge to nowhere.
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