ESP: It’s all gravy baby!

Posted by john in February 8th, 2008

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Congress passed the much anticipated Economic Stimulus Package today, opening the door for checks to be mailed to more then 130 million tax payers.
While the details are discussed everywhere, here is a brief summary of the behemoth 170 billion dollar bill. Taxpayers with at least $3000.00 of income in 2007 will receive up to a $300.00 check. Individual taxpayers with incomes of up to $75,000 will receive up to $600.00 and couples with income up to $150,000, will receive up to $1200.00. Additionally, you could receive up to 300.00 per qualifying child. And remember, children are no longer children, according to tax code, at 17. (6 years old at Disney world). You know, because every 17 year old is completely financially independent and bare no burden on their parents! Anyway, phaseout reductions to the refund amount begin at $75,000 for individuals and $150,000 for couples. And oh ya, you won’t have to pay it back, as it will be taken as a credit on your 2008 tax return. More information can be found here.

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What does this mean to you? Will you spend your refund or put it into savings? I will probably use it to help fund our annual family vacation. While I will not turn down my check, I’m no fool, I do question wether or not this is a good idea. Many economists, smarter than I, say that 170 billion in a 13+ trillion economy, won’t make much difference, while just adding to our national debt (the ugly stepchild we keep in the closet and don’t like to speak of). Further, if taxpayers put it into savings or pay down credit card debt, (you know, be responsible) instead of buying that much anticipated second 50″ plasma TV, it could have an even larger negative affect on the economy. Time will tell. In the mean time party on Garth! Like it’s 1999 or ummmm 2099!?