Tax Rebate or Tax Advance?

February 8, 2008 by
Filed under: Blog Entries, Personal Finance 

money_financesIt looks like the checks will be in the mail around May. Congress passed a bipartisan bill that will send rebate checks to 130 million Americans in amounts of $300 to $600 for people who have an income between $3,000 and $75,000, plus $300 per child. Couples earning up to $150,000 would get $1,200. I’ve heard mixed stories about this”growth stimulus” package and wanted to everyone to be aware of what it is (or isn’t) before you get too excited.

I’ve seen some articles that say the tax rebate is really an advance on next year’s taxes. This means you could potentially owe on your taxes next year if you don’t plan right. I’ve also seen articles that state the rebate is free money from the government to stimulate the economy. Whatever it is, spend it wisely and keep your ears open for additional information until they are actually sent out. I’ve learned that nothing in life is free and everything has a cost associated with it. We’ll see whether this will work as a short term solution.

Whether it works or not, I’m sure we’ll hear all is well. Bush is out in a couple of months, so why should it matter to him? It’ll be the next president’s problem. I never understood how you can balance the budget, lower taxes, spread democracy across the world and increase spending at the same time? Something has to give and the burden will fall on the have-not’s of the world.

 

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2 Comments on Tax Rebate or Tax Advance?

  1. Ms Mackey on Wed, 27th Feb 2008 9:58 am

    2. It is going to be just like a payday loan. They will get the money back from next years taxes. You will be cut short just like you were when they send out rebates in 2000-or 2001 I believe, but the refund was cut by atleast $800.

  2. theo.johnson on Wed, 27th Feb 2008 11:37 am

    3. Ms. Mackey,

    Thanks a lot for the clarification. I heard the same thing. It’s funny how they make it seem like a big deal. Most people I’ve talked to were going to pay down debt with it.

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