Deficit and stimulus refund

[Guest]

I don't usually get involved in political discussions but I am curious about something. I heard that we have a deficit in the billions or trillions and someone remarked that if this is true, how could President Bush give out this stimulus refund. Where did the money come from? Can someone shed some light on this for me?

[Guest]

I don't usually get involved in political discussions but I am curious about something. I heard that we have a deficit in the billions or trillions and someone remarked that if this is true, how could President Bush give out this stimulus refund. Where did the money come from? Can someone shed some light on this for me?


mfp509,

Like you, I try really hard not to get involved in political discussions. But I have a really hard time staying away from discussions of economics.

I have not liked this thing since the very first time I heard about it. I think it is nothing more than the old "Give 'em bread and circuses" routine. Creating a diversion for the masses? A vote buying scheme? Or is it DC fiddling while Rome burns? Or whatever other snotty little comment I can think of to hurl at this mess.

I don't get it.

I don't like it.

I don't want it.

But then, what do I know? I am just one of those voters who has always tried to be financially responsible in my own life.

And I have a feeling that all that lifetime of responsibility is going to get me is the opportunity to just keep putting more and more checks in the mail. But those checks will be from me to DC and not fro.

So I am sorry that I can shed no light upon this.

But it sure lights me up. And not in a good way.

Boomer

[Guest]

From what I hear, the taxes will be part of your year end tax calculations. If you were going to pay this year you will owe more. If you were break even, you will have to pay the rebate back. In the meantime.........our wonderful government borrowed more money from China to pay to process, for postage and all the hype involved. Looks like someone else will be getting a medal of freedom for a job well done.

[Guest]

:realmad: :P doh I wish I had that vomiting icon. What a stupid idea that whole rebate thing was. I imagine much of it went to the oil companies...that need it so badly.

[Guest]

It probably has some mild effect on the economy, and therefore defecit reduction. The only effective way to reduce the defiect is to cut both taxes and spending. The real difference between the Dems and the GOP is the Dems tax and spend and the GOP borrows and spends.
But because I think we are overtaxed, the refund is good fiscal policy.
The more interesting discussion is, "Who is big oil"? I'll give you a hint, the largest shareholder is Fidelity Investments. Another large shareholder is union pension funds.

[Guest]

From CNN:

The (tax rebate) checks are an advance on next year's refunds, and most, if not all of the money, will be deducted from taxpayers' refunds in 12 months' time.

There seems to be some debate on this. Does anyone know how the rebate will be treated on 2008 tax returns?