Rant About the IRS Rebate

[tangomonster]

Okay, so it's not that much and it really wouldn't make a difference in my life. But it was just so frustrating to receive the letter from the IRS today informing me that I may be receiving the $600 per person rebate. First of all, the $42 million that was spent on mailing the letters. I'm not looking for a political debate here, but do you go along with the Democratic take on it:

Democrats accused the Bush administration of wasting time and postage.
"There are countless better uses for $42 million than a self-congratulatory mailer that gives the president a pat on the back for an idea that wasn't even his," Sen. Charles Schumer said Friday, arguing the IRS could more effectively spend the money to catch tax cheats.

Or the official explanation:

Keith Hennessey, director of the president's National Economic Council, said the letters are being sent to explain how the tax rebates will work.
"Any time you do something as a government tens of millions of times, there is ample room for people to get confused. And so if you're going to have tens of millions of taxpayers getting checks, you want to get the information out so that you have as few people as possible confused about what's happening, they understand what's coming, and it reduces the number of incoming requests that IRS and Treasury have to figure out how to deal with it," said Hennessey.
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So it turns out I don't qualify even though I paid (lots) of taxes---because I have no earned (from a j*b) income, although Socia Security qualifies. Why does the "unearned" income not qualify when you pay taxes on it? Not fair!!!!!!

 

[W2R]

I don't think it is fair either, and I have earned income since I am still working! I'd be angry too, were I in your shoes.

It's not like it's that much, but gee.

I don't have "the letter" yet, though I have had my tax refund in hand for several weeks. I'll probably be the last one to get the rebate, with my luck.

 

[FinanceDude]

Okay, so it's not that much and it really wouldn't make a difference in my life. But it was just so frustrating to receive the letter from the IRS today informing me that I may be receiving the $600 per person rebate. First of all, the $42 million that was spent on mailing the letters. I'm not looking for a political debate here, but do you go along with the Democratic take on it:

Democrats accused the Bush administration of wasting time and postage.
"There are countless better uses for $42 million than a self-congratulatory mailer that gives the president a pat on the back for an idea that wasn't even his," Sen. Charles Schumer said Friday, arguing the IRS could more effectively spend the money to catch tax cheats.

Rhetoric in an election year, get used to it.........

 

[ziggy29]

The whole thing is a stupid gimmick. I still say the money would have been better spent on rebuilding and upgrading U.S. infrastructure instead of something that will stimulate China's manufacturing more than America's own labor market. Assuming it was best to spend the money at all with these huge deficits, of course.

 

[youbet]

"There are countless better uses for $42 million than a self-congratulatory mailer that gives the president a pat on the back for an idea that wasn't even his," Sen. Charles Schumer said Friday,

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So it turns out I don't qualify even though I paid (lots) of taxes---because I have no earned (from a j*b) income, although Socia Security qualifies. Why does the "unearned" income not qualify when you pay taxes on it? Not fair!!!!!!

That's kind of a surprise. You say it's "not fair" and the Dems say the plan was not Bush's idea. I wonder if Schumer realized that along with his critique of the mailing he's pointing out that his team is responsible for the details making you unhappy?

To answer your question, yes I go along with the Dem take on it. The mailer was just $42M spent on political rhetoric. And I also agree that the plan is flawed and appreciate the Dems stepping up to claim a full share of the responsibility. Is this the beginning of bi-partisan cooperation? (Just kidding about the cooperation!)

 

[tryan]

Since they couldn't/didn't make it specific to YOU ie. you'll be receiving XX amount ....it was useless.

p.s I hate getting any mail from any level of government that doesn't look like a check. It's like getting a certified letter from a lawyer.

 

[ladelfina]

They could have put the explanation in the mail with the check. A waste.

 

[Rivrider]

Hmmm. $42 million to tell us something we already knew. Sounds like a waste to me. But, then wasting money is probably a big reason the Republicans lost in '06. They PO'd their libertarian voters like me.

 

[growing_older]

Any time you do something as a government tens of millions of times, there is ample room for people to get confused. And so if you're going to have tens of millions of taxpayers getting checks, you want to get the information out so that you have as few people as possible confused about what's happening, they understand what's coming, and it reduces the number of incoming requests that IRS and Treasury have to figure out how to deal with it

Except the letter is all full of "may" and "might" so even if you get one you don't know if you are getting a rebate unless you find the info on your own. Sounds like Repubs thought they could get an attaboy by associating themselves with a cash giveaway. Pure politics.

 

[Tadpole]

The whole thing is a stupid gimmick. I still say the money would have been better spent on rebuilding and upgrading U.S. infrastructure instead of something that will stimulate China's manufacturing more than America's own labor market. Assuming it was best to spend the money at all with these huge deficits, of course.

What can I add. ziggy is right.

 

[UncleHoney]

I got my letter today and for the most part I agree that it was a waste. But, and there is always a but, for people with very low incomes that don't normally file a tax return, the only way they will get a check is if they file a return for 2007. I think this was a wake-up call to them mostly to file a return and along the way they might even catch a few suckers that haven't been filing and should have, but they just can't resist a free check.

For 99.9% of us they could have saved the postage and the paper.

 

[cute fuzzy bunny]

I'll take my refund just like I take my dividends, because I know that company management cant invest it for beans anyhow and I can put it to good use!

As far as requiring $42M to explain to people why they're getting a check from the government to avoid confusion...uh...why not just attach the letter of explanation to the check when you mail it and get all the benefits for free?

Oh yes, thats right, its not supposed to make sense unless yer an idiot.

 

[laurence]

Well I for one will be doing as they ask and spending my rebate check. I've decided to buy a kayak with it - an Innova Sunny. Yes, yes, please, keep down the applause, you can thank me for saving the nation later.

We estimated our taxes, found out despite adjusting our withholding we are still going to get back close to ten grand. Stupid! Stupid! Stupid! How weird is that? We up are deductions and lower our estimate checks (DW consults) and yet we still have a fat return coming in!

 

[OAG]

Here is the schedule of payments: When you'll get your rebate check - Mar. 17, 2008 . I see it pays to efile and have direct deposit or payment out of your account(s). Gee, I will have mine in enough time to pay the VISA bill; since I spent it all, and then some, already. I also spent refund already; direct deposit of refunds is great too.

 

[W2R]

Here is the schedule of payments: When you'll get your rebate check - Mar. 17, 2008 . I see it pays to efile and have direct deposit or payment out of your account(s). Gee, I will have mine in enough time to pay the VISA bill; since I spent it all, and then some, already. I also spent refund already; direct deposit of refunds is great too.

Great info! I hadn't see this schedule.

Looks like I will get mine by May 16th. I had thought of using it to soften some of my recent market losses, but it won't even make a dent. That's my excuse! So, I'll probably spend it on fun stuff, instead.

 

[UncleHoney]

Think I'll just endorse my check and send it back for second quarter estimated taxes.

Easy come, easy go.

 

[aida2003]

Here is the schedule of payments: When you'll get your rebate check - Mar. 17, 2008.

Thanks for the info. Since we paid the IRS by a check, it seems we won't see the rebate until the end of June at the earliest. Gee, I just hope our mailman doesn't put that particular letter in someone else's mailbox. He's been placing our neighbour's mail together with ours in our mailbox...

 

[rs0460a]

Think I'll just endorse my check and send it back for second quarter estimated taxes.

Easy come, easy go.

Since you really don't have to file taxes quarterly (you can pay them a few days before Dec 31st), just put it in your MM account and get a few cents interest ...

- Ron

 

[UncleHoney]

That would work, but I might be tempted to blow it. You know things like a big screen TV or maybe a tank of gas for the truck. Then they'd come and take me and all my toys away to the pokey.

 

[Janet H]

I got my letter today and for the most part I agree that it was a waste. But, and there is always a but, for people with very low incomes that don't normally file a tax return, the only way they will get a check is if they file a return for 2007. I think this was a wake-up call to them mostly to file a return and along the way they might even catch a few suckers that haven't been filing and should have, but they just can't resist a free check.

I wonder how many low/fixed income folks (seniors in particular) who have not had to file, will now pay a preparer to get this refund. Looks like it may be a full employment economy for tax pros for a while.

 

[TeeRuh]

O.K., so this made me look at this in detail; I already knew I was not getting zip, naughta, nuttin, zero. (I received my notice this weekend.) Now I am really pissed about this "political announcement". Just did the calculations: I and DW personally paid for ~0.11% of the 42 million dollar postage. (Assuming all of my income tax goes for this one little thing...) Ain't right!

t.r.

 

[W2R]

O.K., so this made me look at this in detail; I already knew I was not getting zip, naughta, nuttin, zero. (I received my notice this weekend.) Now I am really pissed about this "political announcement". Just did the calculations: I and DW personally paid for ~0.11% of the 42 million dollar postage. (Assuming all of my income tax goes for this one little thing...) Ain't right!

t.r.

And you aren't even counting the labor costs, which ought to be considerably more than the postage. I would assume that the IRS could be using contract employees to crank out the letters and refunds, since their regular employees are already occupied doing their usual work.

 

[TromboneAl]

Hey guys, don't you see? There will be no rebate. They're just sending out this letter, but won't send out the rebates. Get it? 42 million? Pshaw -- think how much they are saving us.

The letter that says

"Hey, kids, you may be getting some money in a month or so, so it's OK to spend now. Head down to the mall and load up your credit card!!!"

When there's no rebate, and people complain, the government will say "What? Check your letter -- we said you 'may' get some money!"

 

[W2R]

Hey guys, don't you see? There will be no rebate. They're just sending out this letter, but won't send out the rebates. Get it? 42 million? Pshaw -- think how much they are saving us.

The letter that says

"Hey, kids, you may be getting some money in a month or so, so it's OK to spend now. Head down to the mall and load up your credit card!!!"

When there's no rebate, and people complain, the government will say "What? Check your letter -- we said you 'may' get some money!"

Well, I have to admit that it's working, and I didn't even get the letter yet!

 

[cute fuzzy bunny]

I wonder how many low/fixed income folks (seniors in particular) who have not had to file, will now pay a preparer to get this refund. Looks like it may be a full employment economy for tax pros for a while.

Might just be a lot of short forms. And they'll be a lot of paper forms that'll need data entry and analysis...

My dad is infamous for not filing. He has lots of, umm..."events" that should be reported but wont end up in him paying any taxes. The IRS might even tell him not to bother. He's one of those "well, I dont think I have to pay taxes this year anyhow, and they wont know about x, y and z so I dont need to tell them...".

Mmmm hmmm.

But he's filing this year!