Stimulus checks

[The Original OC Adventure]

http://www.msnbc.msn.com/id/26074524/

Looks like they failed. Most people used them to pay off debs, or buy gas.

There's talk about another stimulus package. What if they gave out gift cards instead? This would force people to spend the money in retail stores.

Would it work?

[Gemini Cricket]

Interesting. I, too, paid off debt with my entire check.
:)

[scaeagles]

I went to Orlando. I was a good boy.

[BarTopDancer]

I paid off my car, which in turn gave me more money to spend in the economy. Which I'm not really doing, since I'm using that extra money to pay off debt.

If they give another one I prefer cash. So I can pay off debt.

[Alex]

I'd be interested to see if there was actually any real reduction in consumer debt or increase in personal savings rates.

Or if people (on average) just got their checks put them into debt reduction or savings, and then just immediately respent it out of those sources. Then when asked say they paid off credit/increased savings.

[flippyshark]

I went to Orlando. I was a good boy.

Heck, wish I'da known.

Mine went to pay taxes. Grrrr.

[wendybeth]

We gave a portion of it to my MIL, who spent it in Denmark.:D

[Gemini Cricket]

Well, if it failed this time, they should try again!
;)

[The Original OC Adventure]

My wallet agrees with you!

[Scrooge McSam]

Well, some of it went to the two guys that dug out my stump.

Sounds nasty, doesn't it?

So, stump gone, sweaty hottie ogling accomplished, I continued my afternoon of economic stimulation at the liquor store.

And I bought some socks, but I was gonna get those anyway so they don't count.

[Capt Jack]

aw hell! its still sitting on my coffee table!

http://www.bigblockdart.com/Smileys/classic/finger020.gif

[The Original OC Adventure]

well.. if you don't need it...

[JWBear]

I spent mine a Disneyland!

(and some new shoes.)

[Ghoulish Delight]

I used it for stimulation.

[innerSpaceman]

I was gonna spend mine on my income tax debt, but the IRS just kept it.

[Kevy Baby]

What if they gave out gift cards instead? This would force people to spend the money in retail stores.

Would it work?I suspect that we would then see fraud as people sold their cards for pennies on the dollar to get the cash. Not sure how widespread it would become, but it would happen.

[RStar]

I used it for stimulation.

Don't tell CP! :eek:

;)


Well, I didn't get my TV. It also went to bills. But I still have some other money comming in that will get me my 47-52" 1080 TV & DVD with 5.1 surround sound. :snap:

[lizziebith]

We haven't gotten ours yet...:(

[lashbear]

So, as a dumb Aussie, am I right in saying the US Government just gave you all a cheque for free and said "here. go spend" ?

...How much did they give each individual? (if it's different for each, PM me so as not to give the game away)

[Not Afraid]

We've been supporting our local artist community. Does that count?

[Cadaverous Pallor]

Don't tell CP! :eek:
That just means I got paid

[BarTopDancer]

So, as a dumb Aussie, am I right in saying the US Government just gave you all a cheque for free and said "here. go spend" ?

...How much did they give each individual? (if it's different for each, PM me so as not to give the game away)

They gave each tax payer a set amount deepening on their income (or is it how much they paid in taxes)? $300 or $600 per individual, so singles got either $300 or $600 and married couples got $600 or $1200. I can't remember if there was additional money based on the number of kids you had. But it wasn't so much a "gift"as it was an advance on next years tax return.

They got each individual from social security numbers and the information provided to the IRS from employers.

[The Original OC Adventure]

So, as a dumb Aussie, am I right in saying the US Government just gave you all a cheque for free and said "here. go spend" ?

...How much did they give each individual? (if it's different for each, PM me so as not to give the game away)

It's a little complicated.

Individuals got $600, couples $1,200, plus $600 for each additional child.

Those who made (I think) $75,000 or more were disqualified, or got a lower amount.

People on social security or disability, who paid no taxes got $300 each.

[scaeagles]

It was 300 additional per child, not 600.

The 600 individual/1200 couple was on a sliding scale for over 75K/150K. Can't remember exactly how the sliding scale worked.

[BarTopDancer]

Here (http://www.irs.gov/newsroom/article/0,,id=179211,00.html) is some info from the IRS (it's surprisingly straight forward).

Are you eligible? The majority of people who file a 2007 income tax return qualify, and many who don't regularly file a tax return may qualify as well. You're eligible if you have a valid Social Security number (SSN), can't be claimed as a dependent on a tax return and have either an income tax liability or "qualifying income" of at least $3,000. Qualifying income includes any combination of earned income and certain benefits from Social Security, Veterans Affairs or Railroad Retirement. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment. Additional information is below, and a full legal description is available in Revenue Procedure 2008-21.


How much will you get? The actual amount depends on the information contained on your tax return. Eligible individuals will receive between $300 and $600. Those who are eligible and file a joint return will receive a total of between $600 and $1,200. Those with children will get an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number. We have various examples for you check out.

The payments phase out at certain income levels, so those with higher incomes may receive a reduced payment or even no payment.

[The Original OC Adventure]

Sorry. I was going by memory. I should have known better.

[belleh5]

We got $600, and spent it on bills & Taylor. :(

[Kevy Baby]

But it wasn't so much a "gift" as it was an advance on next years tax return.I am curious about this sentence and wondering if there was an aspect I missed. Does the incentive somehow affect people's 2008 tax returns?

[scaeagles]

I had read this but then I read that it was not factual. From what i understand this is a true rebate (or rather redistribution of wealth) and there is no impact on 2008. You don't even have to claim the rebate as income.

[innerSpaceman]

That's good, since I never got it. (And it was reducto-phased because of my income level anyways, bah.)

[Snowflake]

I used it to pay down debt. I could use another check or two, I'm still in debt! ;)

[innerSpaceman]

Oh, I'm gonna need to be stimulated into making a big gooey mess if my debt is going to be paid down by it.

[BarTopDancer]

I am curious about this sentence and wondering if there was an aspect I missed. Does the incentive somehow affect people's 2008 tax returns?

I may have misunderstood the IRS (shocker!) but how I understood this to be was the tax laws were changing next year and most people within the income brackets of this would have received the $300/$600 $600/$1200 amount in their refund next year, so instead they gave it out early as a "stimulus package".

LB was asking if the government just gifted us money.

[Kevy Baby]

I had read this but then I read that it was not factual. From what i understand this is a true rebate (or rather redistribution of wealth) and there is no impact on 2008. You don't even have to claim the rebate as income.Even on State returns (that thought just occurred to me).

[alphabassettgrrl]

I heard experts talking about it when the stimulus check thing was in the planning phase. They said it wasn't going to save the economy.

On the bright side, they did send the money to people who spend it; we just didn't spend it like they wanted us to.

[Kevy Baby]

I heard experts talking about it when the stimulus check thing was in the planning phase. They said it wasn't going to save the economy.I'm not an economist and I knew it was a stupid idea. It was just "feel good politics"

[The Original OC Adventure]

I'm not an economist and I knew it was a stupid idea. It was just "feel good politics"

What if instead of a stimulus check they issued gift cards (with expiration dates) that could be spent at retail store that accepted credit cards?

The card could have restrictions on use. It could not be used to pay down existing debt, only for new purchases.

[BarTopDancer]

http://www.msnbc.msn.com/id/26074524/

Looks like they failed. Most people used them to pay off debs, or buy gas.

There's talk about another stimulus package. What if they gave out gift cards instead? This would force people to spend the money in retail stores.

Would it work?

I suspect that we would then see fraud as people sold their cards for pennies on the dollar to get the cash. Not sure how widespread it would become, but it would happen.

What if instead of a stimulus check they issued gift cards (with expiration dates) that could be spent at retail store that accepted credit cards?

The card could have restrictions on use. It could not be used to pay down existing debt, only for new purchases.
.

[alphabassettgrrl]

I'm not an economist and I knew it was a stupid idea. It was just "feel good politics"

I'm with you here. In an uncertain economy, you're going to send me a check and expect me to spend it on something? Not likely. Not going to increase my spending.

The problem is that our economy is based on a psychotic level of "CONSUME!!! CONSUME!!! BUY BUY BUY!!!" that is unsustainable. Not to mention the expectations that profits will continue to grow constantly without ever having a correction.

[The Original OC Adventure]

Quote:
Originally Posted by Kevy Baby http://www.loungeoftomorrow.com/LoT/images/buttons/viewpost.gif (http://www.loungeoftomorrow.com/LoT/showthread.php?p=230817#post230817)
I suspect that we would then see fraud as people sold their cards for pennies on the dollar to get the cash. Not sure how widespread it would become, but it would happen.

.

Simple solution. Make retail stores ask for ID. Those who fail can have their gift card redemption privileges revoked.

[blueerica]

Hehe, makes me think of those Visa Giftcards...

2009 Economic Stimulus Package: Sponsored by Visa.

Don't leave the homeland without it.

[BarTopDancer]

I <3 you E.

[Kevy Baby]

What if instead of a stimulus check they issued gift cards (with expiration dates) that could be spent at retail store that accepted credit cards?

The card could have restrictions on use. It could not be used to pay down existing debt, only for new purchases.I still don't believe it will have any significance on the economy. Just my $0.02 on the subject.

No, I don't have links handy to support my thesis (although they are out there). And no, I am not going to debate the issue. I just don't believe that it will work.