[news] More Validation of Points Made Yesterday

[mistressbellona]

Next article in the series about the tax rebate debate

This just hammers it home for me:
"Proponents of the rebate-for-all assert that more of lower- and middle-income households should be included in any rebate plan because they are more likely to spend a bigger chunk of their rebate than are higher-income households

Comments

[caillean]

hahahaha, Seriously! Sheeeesh!

[evilaimes]

That last farkin' rebate?

WAS $200!!!!!! That's IT!!!!

I didn't spend it in RETAIL, I put it back into my checking account so that I could pay for the HEATING BILL for my apartment!! It was so miniscule it made NO difference in my world!

Gawds, I swear, these people do not live in reality.

[mistressbellona]

You did what made the most sense at the time. Unfortunately, most people don't have any sense. These rebates are supposed to be considerably larger so the effects are debatable in terms of whether the 2001 rebate is indicative of results.

[tylorael]

I think it comes down to a HUGE FUNDAMENTAL difference of opinion. People who look to long-run sustainable economies look to ways to stop over-spending, but still stimulate growth, etc, whereas people who are looking to get us out of each little slump just want to see spending pop up.

Maybe instead of a rebate for all, they should think of something that encourages you to spend your rebate on paying off consumer debt. Like maybe a tax credit for the next year for the interest you pay off on your credit card with your tax rebate or something like that, and provide some way of direct depositing it to that credit card. (Ok, I know that idea probably has a lot of issues in it, but it's early.)

[mistressbellona]

It looks like the entirety of the government is willing to try the quick lift approach. And why not, if the economy does lift and they are up for reelection they can claim it's because of their decision regardless of the long-term impact. Now they're just bickering about who the rebate should be applied to. My opinion only, but if you haven't contributed any money into the system, you shouldn't be getting more of my taxes just for existing in this country

[tylorael]

I totally agree. Preaching to the choir, girl. ;-)

[lucretiasd]

Years ago, credit card interest was tax deductible. Of course that particular deduction was eliminated just before I started paying taxes.

That tells you just how long ago that was. ;-D

[mistressbellona]

Last I heard, average unsecured consumer debt is around $8000 of principal. So it would take about six months for the interest to catch up and that's assuming only minimum payments are made in between. The article does talk about a two-quarter effect, so it seems that would correlate to credit card paydowns as well.