What Would You Do With the Proposed Tax Rebate?
January 18, 2008 – 6:00 amWelcome to Working For Financial Freedom. If this is your first visit please read about this blog. You can keep updated by subscribing by email or to my RSS feed. Thanks for visiting!
If you haven’t already heard the Bush administration has proposed an economic stimulus package to help the economy.
Along with some tax breaks for businesses the proposal includes an $800 tax rebate for individuals and $1600 for families.
What would you do with an extra $800 or $1600?
I know that we would put it on our debt.
But I wonder if that is what the government wants us to do with the money? I have a feeling they are hoping that the tax rebates would get spent therefore boosting the slowing US economy. The last time Americans received a tax rebate like this was in 2001. By the end of the quarter following the tax rebate distribution 66% of the money distributed was circulating in the economy. The rest was saved. So while buying a flat-screen TV is a bit tempting, we would do the right thing for our family and put it on our debt. It looks like we may not be the only ones.
What about you?
18 Responses to “What Would You Do With the Proposed Tax Rebate?”
I’d pay off my Citibank card and close the account. Then I’d take $50 to take my family out to dinner and celebrate.
By Lynnae @ Being Frugal.net on Jan 18, 2008
Anything at this point would help. Bush need to give a family $10,000.00 that would be ample enough to do something with. $1600.00 will only buy groceries for my family for a month. Go Figure:)
Thank God for that.
By 408east on Jan 18, 2008
HUbby and I willl split the rabate in half, I will put mine towards debt and he will do what he wants with his. I usually benefit from his share so it’s all good. I am doing a bang up job at cutting into the debt so this little rebate will not make much of a difference.
Wow, 408 East, just for groceries? What are you eating and where are you buying it? You need to examine what you are buying and cut down on it. Just a suggestion. Our budget for 4 is $300.00 for groceries for a month.
By AKB on Jan 18, 2008
Everyone would get a bit of funny money, the rest would go towards debt. I think, though, that 3 of us (the kids and I) would invest our “funny money” rather than spend on consumables!
408east is right, as it was in ‘01, this is really individually just a drop in the bucket.
The combined amount could have been used to great good.
By stngy1 on Jan 18, 2008
If I remember correctly from last time the rebate is coming out of your future refund. So if you do get a rebate you get less back later. So it is in no real way a reduction in your taxes. It just is getting some funds now instead of later.
By Marie on Jan 18, 2008
An interesting (predictive) discussion of the 2001 rebate is here: http://www.fool.com/foolu/askfoolu/2001/askfoolu010808.htm The doubletalk about it being an advance on changes in tax law of course doesn’t work this time, but theoretically you weren’t dinged on your tax returns!
By stngy1 on Jan 18, 2008
Okay how soon is it arriving? lol
Pay off credit cards for good ($900), rest in emergency fund. That would get the EF back to $1000. Whew.
I’m ready for my check.
By paidtwice on Jan 18, 2008
I would pay off my credit card, and safe the rest for a rainy day.
By Billie on Jan 22, 2008
I would pay one of my credit cards off and buy something special for myself.
By Ruby on Jan 22, 2008
Randall KILL debt! Smash debt!! Debt DIE!!!
By Randall on Jan 22, 2008
Did I say Kill debt?!! I’d absolutely SMASH it.
The interesting thing to find out is if it will actually be $800/1600 or some other amount.
By Randall on Jan 23, 2008
Bills, bills, and more bills. It would be a start at paying off some of the bills that we wracked up while DH was in school (yeah the school that the military was supposed to pay for but didn’t). Right now that rebate, can’t come soon enough.
By Patty on Jan 23, 2008
Hubby and I are new into investing… and we will probably put the money into our brokerage account. That would bump it up quite nicely
By dawn on Jan 23, 2008
As much as I would love to pay off debs with the money, I will be taking my wife to Hawaii on a much needed vacation following a pretty long bout of illness. She is still recovering, but is at least able to work PT after being under a doctors care for the past year, 7 months of which she as on disability without pay.
By Anthony on Jan 24, 2008
We will use the rebate to pay off a credit card.
By Ron on Feb 7, 2008
When will the checks be disbursed?
thank you,
Linda
By Linda on Feb 13, 2008
Hmmpphh…
Talk about a census report, but that’s besides the point.
I’d love to get a laptop…that work(lol)
All the things I put in pawn to prevent me from being homeless, I’ll get out.
By BNorskog on Apr 2, 2008