Spend it or Save it?

[RetireeRobert]

Save it. Either for ourselves, or as a contribution to DD's IRA account for her. See the poll is hugely voting for "save"---I wouldn't have expected anything else from the ER members!

 

[Bigritchie]

I would have to support my country and buy a HDTV for my office, a XBOX360, PS3, and Mass Effect.

/waves flag!

 

[HFWR]

I would have to support my country and buy a HDTV for my office, a XBOX360, PS3, and Mass Effect.

/waves flag!

That's the spirit!

Sorta brings a tear to yer eye, eh? Cue the Kate Smith...

I voted "save it"...

 

[travelover]

When things get tough, REAL Americans go shopping!

 

[megacorp-firee]

When things get tough, REAL Americans go shopping!

Spoken like my DW

 

[Alan]

I voted save it, which is why, economy wise, I think it is more likely to have an effect if it was targeted to low income folks who are more likely to spend it, even if it might only be to put off the day they default on their mortgage

 

[growing_older]

I saw some analysis which indicates that typically when Americans get $1.00 in a stimulus package they spend about $1.40 of it, because it increases their "confidence" even when they know it's a one time boon. Not sure where they find the other $0.40 since tapping home equity would seem out of the question this time around. In any case, it tells me that my response is not what the government is looking for. I think of it like an unexpected bonus in my paycheck. If I didn't have the expense before, the act of getting the bonus doesn't change my expense plan. If I find money, I put it towards investments for FIRE. Maybe after I reach FI my response would change.

 

[Retire Soon]

I will send my rebate back to the United States Treasury to satisfy part my 2008 Estimated Tax Payments.

 

[Rustic23]

So far, only 20% would spend it. I hope the government isn't counting on this board to stoke the economy!

 

[citrine]

I would save it....allocate it to my Roth IRA for 2008.

 

[RockOn]

I hear there will be an income cut-off of about $110k/joint return. Does anybody have any info on income limits?

 

[Retire Soon]

I hear there will be an income cut-off of about $110k/joint return. Does anybody have any info on income limits?

The White House would like to see the rebate go to everyone who filed an income tax return and paid taxes. This would include taxpayers in higher income brackets. The Democrats, however, would like to see everyone who filed an income tax return receive a rebate, regardless of whether they paid little or no taxes. This would mean there would have to be a ceiling on income to subsidize the low income people. Some Democrats have suggested that couples earning more than $85,000 would not qualify for the tax rebate, while others wish to place the maximum at $110,000.
washingtonpost.com

 

[Sarah in SC]

Maybe I should do with it what we did with the last one--had a big party with our whole hippie neighborhood and bought some, ahem, "smoking supplies" along with lots of liquor! But that was more supporting the underground economy than the "real" one. Ask HFWR, he'll know what I'm talking about.

Ah, but times have changed, perhaps we'll put it towards some porch furniture instead. Sigh.

 

[HFWR]

Maybe I should do with it what we did with the last one--had a big party with our whole hippie neighborhood and bought some, ahem, "smoking supplies" along with lots of liquor! But that was more supporting the underground economy than the "real" one. Ask HFWR, he'll know what I'm talking about.

Ah, but times have changed, perhaps we'll put it towards some porch furniture instead. Sigh.

Supply and demand...

 

[SecondCor521]

I saw some analysis which indicates that typically when Americans get $1.00 in a stimulus package they spend about $1.40 of it, because it increases their "confidence" even when they know it's a one time boon. Not sure where they find the other $0.40 since tapping home equity would seem out of the question this time around. In any case, it tells me that my response is not what the government is looking for. I think of it like an unexpected bonus in my paycheck. If I didn't have the expense before, the act of getting the bonus doesn't change my expense plan. If I find money, I put it towards investments for FIRE. Maybe after I reach FI my response would change.

The only study I've seen mentioned said something different. It was a study of the 2001 or 2003 tax rebate program, and it said that approximately 2/3 of the money was spent within a few months.

Also, the WSJ said that higher income folks were more likely to save it, lower income folks were more likely to spend it, which explains the poll results here.

2Cor521

 

[fireby40]

Driven by a nagging fear that our country will someday be run by someone responsible, I voted 'not retired - save it' on the premise that I might actually be on the hook to repay this borrowed money.

Amazing that people think a problem created in part by fiscal irresponsibility can be solved by more of the same!

 

[RockOn]

Excellent point! Do people realize the govenment is once again 100% borrowing the funds to pay the rebate? I'll vote for you as president, please run.

fireby40 for 2008! Where do I send my contribution? How do I get involved?

 

[BUM]

Buy a tank of gas and a gallon of milk.

Ding! Ding! We have a winner... 'cause thats about all you're going to get!

 

[dumpster56]

Driven by a nagging fear that our country will someday be run by someone responsible, I voted 'not retired - save it' on the premise that I might actually be on the hook to repay this borrowed money.

Amazing that people think a problem created in part by fiscal irresponsibility can be solved by more of the same!

That is why I believe the dow is headed for 8000.

 

[SecondCor521]

I'd like to change my vote.

It turns out that my son[-]'s doctor's children's college fund[/-] requires an adenoidectomy. After insurance pays, and subtracting off my former wife's portion, what's left over comes to...you guessed it...$800. Not that I mind...the kid has problems that the surgery should help.

Anyway, not sure if I'm proud that I'm helping the economy out of a recession or ashamed that I'm contributing to the high cost of health care.

2Cor521

 

[W2R]

Uh-oh, so does this mean that we might have to spend the $800 to help our country get out of a recession?

Guess I had better start shifting into consumer mode...

 

[Bigritchie]

Excellent point! Do people realize the govenment is once again 100% borrowing the funds to pay the rebate? I'll vote for you as president, please run.

fireby40 for 2008! Where do I send my contribution? How do I get involved?

What pisses me off is that the federal reserve creates this money backed by nothing out of thin air, then loans it to our government which then pays it back with interest, and has to tax us to get that interest.

 

[martyb]

OK, my bud says the original amount proposed was around $1800 to be rebated to the people who actually pay taxes, but the whiney (I thought better of the term I originally used here and removed it because I don't want to become known as an antagonist) types pizzed & moaned so now EVERYBODY, even those who pay no taxes will get some, meaning the amount will now be maybe $250. I realize he probably is a little off on the actual numbers, but is that basically the gist of the deal? Who believes people that don't pay taxes are entitled to get MY money back? Flame away!

 

[RockOn]

Helicopter Ben cannot tell who is looking up to the sky with their butterfly nets.

 

[martyb]

The White House would like to see the rebate go to everyone who filed an income tax return and paid taxes. This would include taxpayers in higher income brackets. The Democrats, however, would like to see everyone who filed an income tax return receive a rebate, regardless of whether they paid little or no taxes. This would mean there would have to be a ceiling on income to subsidize the low income people. Some Democrats have suggested that couples earning more than $85,000 would not qualify for the tax rebate, while others wish to place the maximum at $110,000.
washingtonpost.com - nation, world, technology and Washington area news and headlines

If I'd looked a little harder, I'd have seen the above quoted post before I posted my previous post.....lol! However, I stand by the principle that those who pay the taxes should get the rebate.