Extra Tax Rebates Coming Your Way??

[michaeledward]

So, the broker is off the hook, because he sold the paper to the lender.

And the lender is off the hook, because he rolled up the debt and sold it to security houses.

And the security houses are off the hook, because the big insurance companies sold 'bond insurance'.

And when the government bails out the bond insurance companies, no one will realize that it all part of the same house of cards.

If you obscure enough of the financial transactions, nobody knows who is responsible for what ... but distract the taxpayers for a while with a check, and they won't notice the multi-billion dollar bail out that comes out of the taxpayers pocket down the road.

 

[Andrew Green]

Personally, I predict a increase in X-Box 360 and Nintendo Wii sales to come of this.

 

[Kacey]

Personally, I predict a increase in X-Box 360 and Nintendo Wii sales to come of this.

Not from me... but if I get enough back, I'm going to replace the rest of my windows.

 

[Andrew Green]

Not from me... but if I get enough back, I'm going to replace the rest of my windows.

So Microsoft still gets your money :lol:

 

[Kacey]

So Microsoft still gets your money :lol:

Uh... that's windows for my house, not my computer!

 

[MA-Caver]

Personally, I predict a increase in X-Box 360 and Nintendo Wii sales to come of this.

Well I predict a new set of tires for my Jeep and maybe some ROPE :uhyeah: for caving. But I was planning on that with my (regular) return anyway... with the extra... hmm, perhaps I can have enough to enroll in a good MA school. We'll see.


Oh and Bob, think Wool Socks to keep your toes toasty warm. Get the highest percentage of wool that you can. NOTHING beats the insulating and warmth of woolies.

 

[crushing]

Well I predict a new set of tires for my Jeep and maybe some ROPE :uhyeah: for caving. But I was planning on that with my (regular) return anyway... with the extra... hmm, perhaps I can have enough to enroll in a good MA school. We'll see.


Oh and Bob, think Wool Socks to keep your toes toasty warm. Get the highest percentage of wool that you can. NOTHING beats the insulating and warmth of woolies.

I'll do the anti-patriotic thing and put the whole thing towards my auto loan and get that damn thing paid off rather than buy shtuff. I sent my last VISA payment in today. My relationship that started with VISA in 1989 is over! When the car note is paid it's on to baby step 3!

 

[Kacey]

I'll do the anti-patriotic thing and put the whole thing towards my auto loan and get that damn thing paid off rather than buy shtuff. I sent my last VISA payment in today. My relationship that started with VISA in 1989 is over! When the car note is paid it's on to baby step 3!

Congratulations! My Visa is nearly paid off (again) - so it's pay that off first, and then see if I have enough for new windows. The amount I'm likely to get isn't enough to pay anything off - but it could be enough to replace the rest of my old aluminum frame windows, and reduce my utility bills... which will help with the student loans and then the mortgage.

 

[Makalakumu]

I'll take the money and pay down my student loans. The sad reality is that I'll be taking debt to pay off another debt. The government has no other way to pay for this other then to tax me in the future, so this check is just another belayed form of debt.

 

[CoryKS]

I'll take the money and pay down my student loans. The sad reality is that I'll be taking debt to pay off another debt. The government has no other way to pay for this other then to tax me in the future, so this check is just another belayed form of debt.

True. But since they are giving it to you out of the money they've already taken from you, it's a draw if they tax you for it. Plus your loan will be smaller.

 

[Makalakumu]

Yes, but they'll also tax me (and my kids) for the interest...and pay that interest to the Fed...a private bank.

 

[CoryKS]

Yes, but they'll also tax me (and my kids) for the interest...and pay that interest to the Fed...a private bank.

Always look at the daaark si-ide of life! *whistle*

 

[Makalakumu]

Always look at the daaark si-ide of life! *whistle*

Yeah, I know.

On the other hand, its something that Americans cannot afford to ignore anymore, IMHO. I'm so cynical about this, I've joined the dark side(registered Republican so I can vote for Ron Paul in the primary).

 

[Carol]

People that pay ~$22,000 or more per year in taxes will NOT get the rebate, but people that pay NOTHING in taxes WILL get the rebate.

Personally I think thats a heapin' load of (insert derogatory expletive here).

 

[Rich Parsons]

Is this free money or a loan against next year tax refund? Like it was a couple years ago.

It is never Free.

If you do not pay today, we will pay more tomorrow.

We should pay more today, to take care of the National Debt.

 

[Rich Parsons]

I'm really not much of a economist, but isn't the recession fears largely do to the huge deficit the US is running under, as well as the huge debt? Won't this increase the deficit as the government will have less money after giving a bunch out?

Seems like common sense to me, in order to cut taxes, you need to also cut spending.

I know there is an answer to this already in the thread but here is mine as well.

It is about the Mortgage issues that should have been obvious to those in the know. I remember people trying to tell me to buy a house twice the size and get some of this interesting financing. Heck even the mortgage companies were surprised by debt ratio and could not understand why I just did not take more. I was fine then, and I am fine now. Hmmm, Slow and steady with minimum risk. Yep I am an engineer.

As to your questions about the debt and deficit spending, there is some concern about this. When the Federal Reserve produces / releases more money into the system / economy this provides more money for spending but it also causes inflation as the total money has increased. When the Federal Government and the two are not directly connected, give cash refunds in the form of tax rebates or tax refunds they are taking money out of their budget. This budget is about what they can spend. This means they borrow more money and the deficit does get bigger. As the deficit gets bigger the value of the Dollar goes down compared to other monies around the world.

So while they are tied together they are not directly related. There is an indirect relationship with a complex description of that relationship, that I have not completely grasped myself, and I have friends who are economists and I have bought them Jack and Cokes to talk about this.

 

[Rich Parsons]

Because the lenders and borrowes both had the same mindset that far too many in this country have...I want it NOW!!! Just let me close this deal so I can make my quota/commission and we'll worry about the rest of it later. Well, it's later and all hell is breaking loose. Between somewhat predatory lending practices and people who should have (reasonably) known they shouldn't be buying a house when they could barely keep up with their rent this fiasco was a nightmare waiting to happen. I'm not sure when everyone forgot the old saying "If it seems too good to be true it probably is." but that seems to be what's happening.

As for the rebate check, I'm a little insulted to be honest with you. It's like giving a kid a sucker to shut him up for a couple of minutes. Do something solid with the economy so that I'm stable in the long run and you can keep the check. 'Course we all know that ain't happenin.

This is so true. I heard lots of people talking about the just need to get through this short period of time and then they will re-finance again.

Poor long term thinking in my mind. I know that many were made this offer and they did not understand the true ramification of their decision. But, I still think it is their responsibility to understand their finances.

Just as it is for the companies who lend the money to understand the problems. But the guy selling the loan is the one just closing the deal. The other guy who uses that mortgage to back up other deals is just following the process of the company. No one on purpose tried to hurt someone here. They just all got greedy as the other company is doing this and are making money now so we need to as well.

 

[Rich Parsons]

Actually, the lenders probably did profit from the loan. Many loans are sold to other companies, often quite soon after the money has been lent.

This is true. They sell it for points on the loan. They take their money this way upfront in a smaller amount. the buyer is taking the loan for the long term over all gain.

 

[Rich Parsons]

People that pay ~$22,000 or more per year in taxes will NOT get the rebate, but people that pay NOTHING in taxes WILL get the rebate.

Personally I think thats a heapin' load of (insert derogatory expletive here).

Do yo have a source or link for these numbers Carol? Iwould be intersted in reading more.

Thanks

 

[Kacey]

Decreasing debt ratio is not a bad thing.
Pay off the Visa and look into a Home Equity loan. These can be a partial benefit as loans go as part of it is a deductible on your tax forms. So having the Home Equity of the same value and usually at a lower interest rate then a credit card is better then just the credit card.

Do yo have a source or link for these numbers Carol? Iwould be intersted in reading more.

Thanks

I've heard several different figures; the last time I heard, it was $300 for people earning less that $3000 (so, people who would get everything back anyway), $600 per person (so, $1200 per married couple) up to $75,000, and $300 per child per eligible married couple. But every time I look it's something different - and don't forget, this is all speculation at the moment; until it actually passes in the House and the Senate, nothing is fixed. This article from the Chicago Tribune seems to cover some of the details in the proposal well - at least, it matches what I heard on the news last night.