Welcome to my blog where I discuss money, investing, politics, and anything else import in the world. I find it surprising that most people in their 30s have very little knowledge or interest in these areas. Of course everyone is interested in money, but very few take the time or have the discipline to properly save and invest it for the future or short term. For those who at least have the interest, I'll write about my experiences and methods of investing, and hopefully give you a head start in investing.

Thursday, January 24, 2008

Government Stimulus Package

By now, everyone has seen the headlines: $600 tax rebate for every working person, $1200 per family, plus maybe $300 per child. This includes rebates to those who did not pay taxes, but at least earned $3000 (only a $300 rebate for them). They now are including an income limit of $75,000 per single person and $150,000 per couple, where the rebate will decrease, but no details on how or where it goes to $0. They say this is aimed at the "working" and middle class. So good news, if you make more the $150,000 combined income you are no longer middle class, but I guess considered rich! Of course, where I live $150,000 is not wealthy, not when a three bedroom house still costs a minimum $400,000.

Don't get too excited yet, as this agreement still has to be written up and passed by Congress. And already the Democrats want to tag on additional spending and Government programs, such as building roads. They are talking about trying to extend unemployment benefits and food stamps. From Charles Rangel, D-N.Y.,
I do not understand, and cannot accept, the resistance of President Bush and republican leaders to including an extension of unemployment benefits for those who are without work through no fault of their own,
Maybe because unemployment is not the problem. We are at historically low levels of unemployment. There are always going to be people unemployed. The stimulus needs to be focused on the problem areas in the economy. In truth, the most important part of the stimulus package may be tax breaks to companies and small businesses, which allows tax write-offs for 50 percent of the purchase price of plants and other capital equipment and permit small businesses to write off additional purchases of equipment. Giving people money to spend is a band aid. Giving businesses incentives to invest, be more productive and create jobs is a real stimulant to the economy. Although it is not clear this goes far enough to really help businesses, thus is the problem with compromise.
The Dems really want to hand out free money to the middle class and working class (like the rest of us don't work). Why? Because they make up the largest voting base for one. They are against helping out businesses. While the Republicans would like to use business to stimulate the economy, which is longer lasting. So we get a little of each, but probably not enough to amount to anything. It will be interesting to see how this changes when Congress gets a hold of it. Likely it will drag on for a while and be diluted and expanded before going to the President, who probably won't be able to veto it in an election year.

3 comments:

k0174583 said...

I am a 30 something who doesn't understand why they would be including people who pay no taxes when this is in anticipation of our earnings in the coming year? What would happen if we sent those checks right back to the Government and asked them to take care of one of the several issues facing us in the upcoming years of recovering from the Bush Administration??

we need a change said...

I'm part of the "working class",and i can tell u that the stimulus package may not help the problem,but with gas,and food going up,we can use the money..So as for the unemployment,well being laid off in my days let me tell u its better to have a job then to get unemployment,it doesnt pay the bills by far.So i really think that they need to let them get that a little longer,because there isnt a job out there for them to find..It really upsets me to hear people say they should not have a tax break. You know i would like to see someone live one day in someones shoes who only make 20,000 a year or less...its not that we want to its because all the good paying jobs are being sent over seas,and the wages are under 6 dallors a hour. Im not asking for people to feel sorry for these people who are down on there luck,but to at least understand that they are the ones who are getting hit the hardest..So why shouldnt they get the most help.they pay taxes too.And u might even say they are getting help,or there is help out there for them,but there isnt.The goverment got us in this mess,they should get us out.I hope for a change.

leola said...

Hi I just wanted to set the pigheaded person in the first comment straight!!!! unlike this person I am on social security and I have two very young children. through a very unfortunate accident my husband was killed a little over a year ago. Unlike the person who wrote the comment in question apparently they have never been through something that tragic to where you are forced to live on barely enough money to pay ur bills. so yes being in this situation, You Very Much look forward to all the help you can get!!! so yes above most people I do think we in this class of ppl need more help than most!!!!!!