New Tax Rebate On The Table

Re: New Tax Rebate On The Table

Look..I'm a republican and a socialist all bundled up into one crazy website poster.

More power to you!

[ladymoreta]

Re: New Tax Rebate On The Table

I agree with PrincessFiona about the taxes being my biggest problem with Obama. I just don't see the logic behind his numbers, and I don't think that it is fair to put the majority of the burden on the small percentage of the population that doesn't actually need (and will probably not receive) the government's assistance. He is getting the lower and middle class's vote by promising them a LOT of things that will be completely free (to them).

When my DH finishes training in four years, we'll be trying to catch up on 8 years of retirement savings, starting a college fund, preparing to support our aging parents (since I doubt SS will be enough, or there at all, when they retire), paying 40% or more in taxes, and possibly facing a health care reform. I seriously feel like going around to all the pre-med programs and telling the undergrad students to change their major to basket weaving or something. It doesn't matter if you can support yourself doing it, Big Brother Sam will take care of you... ><

I also agree that I wouldn't mind paying taxes if I thought they would benefit society. I just think that our government has shown ridiculous judgement in how they use the money we've already given them. If they can't use that well, why should we give them more?

Re: New Tax Rebate On The Table

Kris are you sure you are right about the rebates?

I didn't think you get back if you have not paid. For example the last stimulus check DH and I only got $600, and I thought that was because we had not paid enough in taxes to get the full $1200.
This is one of the things that I find misleading about McCain's spiel. Saying he will give $5000 tax credits for healthcare when many families do not pay that much in taxes so would not benefit.

Correct me if I am wrong, I am curious now.

I don't think DH will ever be making enough over $250k for us to worry about the new tax structure. But I am beginning to understand why American's make such a big deal about taxes, when it does not seem like the government is up to the task of spending the money wisely.

[Sheherezade]

Re: New Tax Rebate On The Table

I agree that the government's priorities have been a little skewed for....my entire adult life. Of course, the problem with democracy is that 49% of the people can feel the government is making poor choices with their tax dollars and the system is still "working". I'd imagine politicians will never please everyone precisely because they will always upset everyone eventually on some choice.

My view of the rebates/tax credit checks sent to consumers is that this is the new-fangled "slightly-less than free" market way of injecting capital in to the retail economy. The focus after the checks are sent is always "Did they spend it?". Last round, there was great disappointment that the U.S. population seemed to use a lump of the cash sent out to pay down debt. Bad people. I've now come to view these programs as cash injections to businesses (the government's true concern these days) filtered through the choice of the people. 70% of our economy is consumer spending. "Economic stimulus" is more palatable to the voters if they are doing the stimulating and it makes the market (buyers) choose who will get "help" in the form of business and who will fail. If voters kept their money and put it in their mattresses...I bet we would see no more rebates or credits. It's not for you - it's for the economy.

If the government could have figured out a way to prop up the banking system through consumers/voters, they would have. I believe they still may with direct purchase of mortgages. I suppose that backing unlimited deposits in banks is also a form of cash injection via the consumers should runs start at some point. That would probably be better.....at least you'd get money you actually saved and the bank would just go bust.

Anyhoo.....my main point of all this ramble is that I think the government sees you as consuming (spending) enough in our economy because you have some cash. Giving you more won't help too much. You already buy much of what you want. Giving money to people making less than 250K may actually get them out spending because they have deferred purchases. The government doesn't want to give ANYBODY back money, they do want to get people to spend and grow our GDP even more so we look like a booming economy and we can borrow all that money to fund our programs (from China!). If this also gets them a hunk of votes in the process - great! - but it isn't meant to "help" the middle class more than it is meant to help the economy. (And obviously.....through that improve jobs, etc. I'm not completely cynical....just mostly!)