Comments on: The bogus economic stimulus tax rebate http://polizeros.com/2008/02/14/the-bogus-economic-stimulus-tax-rebate/ Musings on politics: Antiwar, global warming, peak oil and otherwise Sat, 10 Jan 2009 00:59:34 +0000 http://wordpress.org/?v=2.7 hourly 1 By: DJ http://polizeros.com/2008/02/14/the-bogus-economic-stimulus-tax-rebate/comment-page-1/#comment-148858 DJ Sat, 16 Feb 2008 16:19:40 +0000 http://polizeros.com/2008/02/14/the-bogus-economic-stimulus-tax-rebate/#comment-148858 Actually I doubt it. Credit card companies make money when people maintain a balance-- not when they pay it down. Many Americans run high credit card balances, make their monthly payments on time, and pay exhorbitant interest expense in the process. The banks love them. Pay down the debt? That's unAmerican-- just ask the President. Keep in mind, too that when someone defaults, the banks accrue enormous amounts of income in the form of late fees, collection fees, and so forth. Then later they get to write it off as bad debt, so it inflates their income without becoming taxable. What a deal! Gross income goes up (wowing investors) but taxes don't. Actually I doubt it. Credit card companies make money when people maintain a balance– not when they pay it down. Many Americans run high credit card balances, make their monthly payments on time, and pay exhorbitant interest expense in the process. The banks love them. Pay down the debt? That’s unAmerican– just ask the President.

Keep in mind, too that when someone defaults, the banks accrue enormous amounts of income in the form of late fees, collection fees, and so forth. Then later they get to write it off as bad debt, so it inflates their income without becoming taxable. What a deal! Gross income goes up (wowing investors) but taxes don’t.

]]> By: Bob Morris http://polizeros.com/2008/02/14/the-bogus-economic-stimulus-tax-rebate/comment-page-1/#comment-148838 Bob Morris Sat, 16 Feb 2008 00:41:06 +0000 http://polizeros.com/2008/02/14/the-bogus-economic-stimulus-tax-rebate/#comment-148838 If most the money will go to debt, gee, the credit card companies will be happy, won't they? If most the money will go to debt, gee, the credit card companies will be happy, won’t they?

]]> By: DJ http://polizeros.com/2008/02/14/the-bogus-economic-stimulus-tax-rebate/comment-page-1/#comment-148820 DJ Fri, 15 Feb 2008 15:10:46 +0000 http://polizeros.com/2008/02/14/the-bogus-economic-stimulus-tax-rebate/#comment-148820 As I posted on my blog this morning, I stand corrected: CCH (tax experts) say you WON'T have to pay back any excess rebatre. I sure can;t find that inj the bill, but presumably they read these things better than I. But yeah, it's a $170 billion bribe by incumbent lawmakers. Two different surveys report that 4 out of 5 taxpayers plan to pay down debt or invest-- not spend-- the rebate. Some stimulus. As I posted on my blog this morning, I stand corrected: CCH (tax experts) say you WON’T have to pay back any excess rebatre. I sure can;t find that inj the bill, but presumably they read these things better than I.

But yeah, it’s a $170 billion bribe by incumbent lawmakers. Two different surveys report that 4 out of 5 taxpayers plan to pay down debt or invest– not spend– the rebate. Some stimulus.

]]> By: Oneunder http://polizeros.com/2008/02/14/the-bogus-economic-stimulus-tax-rebate/comment-page-1/#comment-148814 Oneunder Fri, 15 Feb 2008 14:33:08 +0000 http://polizeros.com/2008/02/14/the-bogus-economic-stimulus-tax-rebate/#comment-148814 Bob- The shell game photo is the perfect motif for this piece. It feels like a massive bribe to me. Dirty, dirty. Hey let's give everyone $600 that ought to shut them up for awhile. Bob- The shell game photo is the perfect motif for this piece. It feels like a massive bribe to me. Dirty, dirty. Hey let’s give everyone $600 that ought to shut them up for awhile.

]]> By: DJ http://polizeros.com/2008/02/14/the-bogus-economic-stimulus-tax-rebate/comment-page-1/#comment-148791 DJ Fri, 15 Feb 2008 02:32:03 +0000 http://polizeros.com/2008/02/14/the-bogus-economic-stimulus-tax-rebate/#comment-148791 "the amount credited to your 2007 taxes will be added on to your 2008 taxes." That's not exactly it. Most individual taxpayers WILL get a tax credit in 2008. The way it works is, you'll get a rebate in 2007 figured as if the tax credit rules applied to your 2007 tax return. This is considered an advance refund against the tax credit for 2008. But if your income changes between 2007 and 2008, so that it's either too high or too low for the amount of rebate you received, it does appear that you would have to pay back the difference on your 2008 taxes. For most wage earners, this won't be an issue. But if you're self employed, or get laid off, it could be a problem. BTW, since it's based on your 2007 taxes, and refunds are expected to begin in June, that means delaying your filing (by filing an extension) will delay your rebate-- so get your stuff to your tax man! “the amount credited to your 2007 taxes will be added on to your 2008 taxes.”

That’s not exactly it. Most individual taxpayers WILL get a tax credit in 2008. The way it works is, you’ll get a rebate in 2007 figured as if the tax credit rules applied to your 2007 tax return. This is considered an advance refund against the tax credit for 2008. But if your income changes between 2007 and 2008, so that it’s either too high or too low for the amount of rebate you received, it does appear that you would have to pay back the difference on your 2008 taxes. For most wage earners, this won’t be an issue. But if you’re self employed, or get laid off, it could be a problem.

BTW, since it’s based on your 2007 taxes, and refunds are expected to begin in June, that means delaying your filing (by filing an extension) will delay your rebate– so get your stuff to your tax man!

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