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Just Wondering | Since we are in a recession, is this a good idea ? |
We have a $9 trillion deficit should we all just sign the rebate check and address it to the IRS because we are going to repay that $300 with higher interest anyway?
Just remember nothing is for free ! |
 |
 
canam
 |
I almost understand the theory behind the rebate but it seems like a solution that is short term. |
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David M
|
Your premise is incorrect. A recession is defined as at least two quarters in a row of negative growth. So far we have none. As far as your $300 is concerned, do with it what you want. The government is expecting you to spend some or all of it to help stimulate the economy. But it's yours to spend any way you wish. |
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The Shadow
|
The purpose of the tax rebates is to get you to spend it. In theory, lots of people spending more money will increase economic activity, increase hiring, and promote more spending. Increased economic activity helps to avoid a recession. If everyone gives the money back, then there is no economic stimulus and it actually increases the chance of recession.
You're right when you say that nothing is free. Eventually, we will have to pay the debt back. However, it will take a lot more than refusing the current rebates. Even if everyone did it, it would cover only a small percentage of the total deficit.
P.S. The person who says that the new rebates are an advance of your 2008 refund is incorrect. The rebate is a partial return of your 2007 taxes. It will not be deducted from your 2008 refund. It doesn't even have anything to do with getting a refund. You can qualify for the rebate even if you have to write a check with your 2007 return. |
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big dog lover
 |
You better keep it- so that you can pay the taxes on it for next year. |
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Blando
 |
Since we are NOT in recession (the are FEARS of a recession) I would pay bills with you check. |
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timtodayandyesterday
|
Yes, it is a good idea to spend the check. Sending it back would not stimulate the economy. Our economy is based on debt. So unless our debt increases our economy will do worse.
It all started in the 30's when people wanted a better life. |
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Donald B
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I think the administration is putting a band aid on a gaping wound. |
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pkb1971
 |
yes. it is the good time to investment in capital market |
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es
|
I would cash it and buy gold with it--at least that will go up in value! |
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thethirdheat
|
I don't know much about taxes, but I think the rebate is really just an advance on your 2008 tax refund so everyones 2008 tax refund will be $600 less, but I could be wrong.
We're not in a recession yet, though the entire country is talking itself into one.
Think about this, if there is high inflation, then that $9 trillion dollar debt will be nothing. How about a gallon of milk for $1 billion. The other thing is that when other countries were sunk by huge deficits (Argentina) there debt was in dollars, and not pesos (whatever Argentina's currency is). The U.S. government controls the U.S. dollar, they can print its way out of any deficit. Argentina didn't have the same luxury to pay its debt back in pesos. We should send a box of steaks to the guys that decided to make the U.S. dollar the de facto worldwide currency.
The main reason for this refund mess is because it is an election year. Democracy doesn't work. |
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