The economic stimulus package I see mentioned most often in the media is a tax rebate amounting to $800 for single filers and $1600 for joint filers. It's up for debate still who would be eligible, particularly whether or not you'd get it if your income was low enough you didn't pay $800 in taxes this year. But for the purposes of this thread, let's assume that you get the money.
Do you splurge on something you wouldn't have bought otherwise? Pay off bills or old debt? Put it in the stock market while it's nice and low? (Apparently we're supposed to spend it on stuff to get it cycling through the economy again. But if we do, how much of the stuff we buy is even made in America anymore?)
For my answer: Part of an $800 rebate would go toward paying off a debt to my father (so that part stays in the local economy I guess). Part of it would go into my Roth IRA, assuming the market is still low by the time we get the checks. For actual consumer spending, normally I'd be getting new videogames but I'm still playing the ones I got for christmas so probably not. I might by a new endtable or some nicer shelves, though. Does taking $200 to play Blackjack count as stimulating the economy? I could do that.
How about you? What exciting or stimulating things would you be spending an extra tax rebate on?
--Enigmatic
Posted by Valentine014 (Member # 5981) on :
Flowers. I would spend that money on the flowers for our wedding.
Posted by Javert Hugo (Member # 3980) on :
In savings account for possible trip to England. Does stimulating England's economy count?
Posted by Jon Boy (Member # 4284) on :
It would probably help fund grad school (not that it'd go terribly far).
Posted by Jim-Me (Member # 6426) on :
out of curiousity, does "head of household" count as a joint filing status?
Posted by Mucus (Member # 9735) on :
I'd blow it all on some fun, risky, and totally irresponsible gambling.
I'd buy $800 of Citigroup
Posted by pooka (Member # 5003) on :
I'd pay off/down a credit card.
Posted by brojack17 (Member # 9189) on :
A vacation. We do not have a vacation in the budget for this year. It would be nice to take one.
Posted by erosomniac (Member # 6834) on :
It's a boring answer, but all 800 would likely go straight into my IRA.
Posted by lobo (Member # 1761) on :
I would pay off credit cards.
Posted by kmbboots (Member # 8576) on :
Most would go into the travel stash. Some might go for home improvement - new towels and bookshelves and lamps.
Posted by pooka (Member # 5003) on :
You know, someone was asking what I'd spend a $25,000 prize on last year, and I just kind of shrugged. I think my imagination's broke or something. Though it did occur to me today to tell my kids that when our house is paid off, we'll go to Disney something or other. I only thought of this because two families in the carpool went to Disney this week, and I was thinking of what to say if the inevitable question gets asked. Sadly, it has not been. My kids are already dead in their little consumerist hearts.
Posted by twinky (Member # 693) on :
I think it would go in my "new electric guitar or electronic drum kit" fund.
Posted by advice for robots (Member # 2544) on :
Either into savings where it will earn interest, or to finish the unfinished bathroom downstairs.
Posted by Lyrhawn (Member # 7039) on :
Jim-Me - No.
I likely won't be getting anything back, unless the Democrats win and they do it by who pays social security and not income taxes the way the Republicans want.
But for the purposes of debate...$500 would go into savings right off the top, I don't know specifically what I'd use it towards, I might pay part of my school loan and I might just leave it there for any future trip I might want to take.
The other $300 I might just splurge with. There're some cds, books and seasons of TV that I want, but, likely it too will just sit in the bank. My mom raised me to feel somewhat guilty when splurging with money that I know should really go into savings, so, I might go a LITTLE nuts, but, mostly it'll go into savings if I get anything.
Posted by El JT de Spang (Member # 7742) on :
I've always liked to use bonuses like that partially for things I wouldn't otherwise buy and partially for investment.
$800 isn't really enough for me to split up, so I'd probably blow it on [electronic toy/plane ticket] with the understanding that I would put my tax return straight into my IRA.
Posted by Shanna (Member # 7900) on :
I should be getting back close to that amount this year.
Most of it will be used to pay off my credit card. I might treat myself with $100 shopping day. The rest goes into a savings account to help build my security blanket when I move in a few months.
Posted by Lisa (Member # 8384) on :
Donate it to the Ron Paul campaign so that I don't have to wonder whether the government will be so kind as to return to me a tiny fraction of the money I earned.
Posted by Lime (Member # 1707) on :
Split between paying off credit cards, savings... and perhaps a book or two. Or some shelves to put books on -- I'm running low on those.
Posted by Nighthawk (Member # 4176) on :
I'd blow it all in a day, wake up in a ditch by the side of the freeway wearing someone else's pants, and I wouldn't remember a thing (thank God).
Posted by MattP (Member # 10495) on :
Pay off debt.
Posted by James Tiberius Kirk (Member # 2832) on :
Savings.
--j_k
Posted by mr_porteiro_head (Member # 4644) on :
A new roof on our house.
Posted by Noemon (Member # 1115) on :
That's a cheap roof!
Posted by MattP (Member # 10495) on :
It's a small house!
Posted by Goody Scrivener (Member # 6742) on :
Disney. Definitely I've been wanting to take the kids for years and now the younger one is finally old enough and mentally capable of dealing with the larger rides.
Posted by Synesthesia (Member # 4774) on :
RENT!!!! If I'm still even in this apartment! If I haven't been evicted first!
But, if I didn't have to spend it on rent, I'd save a chunk of it and spend the rest SEEING DIR EN GREY a lot.
Posted by hansenj (Member # 4034) on :
Whatever our rebate ends up being, it's going to get eaten up by baby expenses.
If I could splurge? We'd get a Nintendo Wii and Guitar Hero III. Posted by Sterling (Member # 8096) on :
...Trying to elect someone who doesn't think the best thing to do in the face of massive deficits and a declining economy is to buy votes?...
Posted by theamazeeaz (Member # 6970) on :
A CD.
Start up money if I go to grad school.
A Wii
Cheap trip to Europe (hostels, etc)
Trailer for my boat that I can't sail because I can't bring it anywhere (won it on a game show).
Posted by Carrie (Member # 394) on :
I'd really like to get a coffee table and maybe a lamp or two for my living room.
Whatever's left from that, I'd split in two: some into the bank, the rest into my "I really want an XBOX 360" fund.
Posted by cmc (Member # 9549) on :
My Mom sort of lost her mind (in a good way) and decided that she was quitting her job and going down to Mexico to stay with my Aunt, who works for the Embassy, and my Uncle, who runs some robotics company. She'll be there for 6 weeks... going to school to touch up on her Spanish and volunteer at an orphanage. She's going to figure out what she's doing after that when she gets back.
She makes me feel like my deciding to stop working and going back to school is so self-serving... GAH!
Anyway... with the 800 bucks I'd probably spring for a trip down to see her and hang out with the fam for a while... I'd probably opt for a return flight through NoCal to visit my greatest friend from growing up, who just had her second baby...
Whatever was left would go to the bank - and sit there until I needed a slush fund type thang...
Posted by Enigmatic (Member # 7785) on :
A sidenote on the few comments that people would spend it supporting a political candidate: That would probably keep the $800 in the US economy longer than most physical things we could buy. It goes to the campaign, the campaign spends it on tv advertising, the network spends it on tv shows, etc. On the other hand, if someone buys a new TV or a Wii, the local retailer gets a little and most the rest goes overseas.
I'm also kind of curious what kind of effect paying off credit cards has on consumer spending. If your credit card is paid up are you more likely to buy more things on credit? I imagine some economist somewhere has probably done a study.
--Enigmatic
Posted by Javert (Member # 3076) on :
Half into my savings account. The other half, maybe a new iPod touch and enough left over to take a young lady out for some good sushi.
Posted by kojabu (Member # 8042) on :
Can you get a refund if someone is claiming you as a dependent?
Posted by BandoCommando (Member # 7746) on :
I'm going to add yet another vote for paying off/down credit cards or making an extra-large car payment that month....
Posted by AvidReader (Member # 6007) on :
I'd save it for a Wii and Rock Band for the Wii when it comes out. We played it the other day on my friend's 360 and it's easily the greatest game ever.
Posted by maui babe (Member # 1894) on :
quote:Originally posted by Goody Scrivener: Disney. Definitely I've been wanting to take the kids for years and now the younger one is finally old enough and mentally capable of dealing with the larger rides.
Can you really go to Disney World/Land on that amount? Or do you live close enough that travel/lodging wouldn't be an issue?
Posted by Youth ap Orem (Member # 5582) on :
Quit my job and live on the interest.
Posted by ketchupqueen (Member # 6877) on :
Probably I'd spend it on the same stuff we're spending our $4500 tax refund on. Posted by scholar (Member # 9232) on :
Fix my kitchen sink, replace the rotting wood around the flower beds and go out for a nice meal.
If you don't pay SS and don't make enough to owe that much in taxes (20k), then would you get anything on either party's plan?
Posted by Launchywiggin (Member # 9116) on :
bank.
Posted by Goody Scrivener (Member # 6742) on :
quote:Originally posted by maui babe:
quote:Originally posted by Goody Scrivener: Disney. Definitely I've been wanting to take the kids for years and now the younger one is finally old enough and mentally capable of dealing with the larger rides.
Can you really go to Disney World/Land on that amount? Or do you live close enough that travel/lodging wouldn't be an issue?
I've got friends in the area that I can stay with.
Posted by Noemon (Member # 1115) on :
I'd probably use it to pay (or help pay) for Worldcon. Not the wisest choice, I know, but I really want to go.
Posted by Belle (Member # 2314) on :
Books for next semester. And help toward tuition, as well.
Posted by Kwea (Member # 2199) on :
Put it towards a second car/truck for us. Not brand new, but new to us anyway.
Goody, let us know if that is what you do. I live about 1 1/2 hour from there, and there is a fairly active Hatrack clump in the Kissimmee area as well, and most of us like Disney. Posted by anti_maven (Member # 9789) on :
quote:Originally posted by ketchupqueen: Probably I'd spend it on the same stuff we're spending our $4500 tax refund on.
Hands up who's married to a tax accountant...
As for spends - I'm the king of spendthrift. $800 would buy me a nice octave mandolin and a three star meal for Mrs_Maven and me here: Restaurant Akelarre - Donostia Posted by Samprimary (Member # 8561) on :
IRA
:/
Posted by TomDavidson (Member # 124) on :
I'm rather annoyed by the whole rebate proposal. At this stage, I think I'd use it to buy precious metals or foreign currency.
Posted by Tante Shvester (Member # 8202) on :
The English translation of the menu doesn't sound all that appetizing:
quote: The materialized aromas of Porto Wine (Red Fruits, Cocoa, Soil) Roasted Lobster and Spiced Balloon Beef in Coppered Potato and Juicy Sponge
Posted by DeathofBees (Member # 3862) on :
We'd put it toward the house we're building in Mexico City.
Posted by Goody Scrivener (Member # 6742) on :
quote:Originally posted by Kwea: Goody, let us know if that is what you do. I live about 1 1/2 hour from there, and there is a fairly active Hatrack clump in the Kissimmee area as well, and most of us like Disney.
You got it!!!
Posted by Javert Hugo (Member # 3980) on :
*sad* I change my answer. I would put it towards fixing my car.
Posted by SenojRetep (Member # 8614) on :
I'd save it to pay off the tax debt I'll have next Spring due to the rebate I received this Spring.
That's the way this works, right? They're loaning us some money in advance which we'll have to pay back next tax year?
If not, well, $1600 might be enough to put us over the top for the new boiler we need.
Posted by TomDavidson (Member # 124) on :
quote:They're loaning us some money in advance which we'll have to pay back next tax year?
Heh. They're loaning us money that we'll have to pay back some time around 2015 in the form of foreign wars.
Posted by SenojRetep (Member # 8614) on :
quote:Originally posted by TomDavidson:
quote:They're loaning us some money in advance which we'll have to pay back next tax year?
Heh. They're loaning us money that we'll have to pay back some time around 2015 in the form of foreign wars.
And your investing in foreign currency is betting on the winner?
Posted by TomDavidson (Member # 124) on :
Yes.
Posted by fugu13 (Member # 2859) on :
Tom: just buy foreign stock indices. Most of the benefits of purchasing foreign currency, few of the downsides.
Precious metals are not a good investment.
Posted by Enigmatic (Member # 7785) on :
CNN story on what seems to be the latest compromise. For people who paid income tax it's $600 individual, $1200 joint. Incomes up to $75k single/$150k joint eligible. People who didn't make enough to pay income tax would get a lesser amount but still get something. There may also be some extra credit for people with kids in the works.
Again, I'm not really sure if this type of rebate helps much to stimulate the economy. I'm kind of surprised that we don't see any sort of "Buy American" campaign going on like we used to, but I'm guessing as there got to be fewer options to do so people kind of stopped supporting that.
--Enigmatic
Posted by lem (Member # 6914) on :
quote: Donate it to the Ron Paul campaign so that I don't have to wonder whether the government will be so kind as to return to me a tiny fraction of the money I earned.
I am married and so we will probably get $1600 back. I plan on donating half to Ron Paul for the very reason Lisa wrote.
I didn't earn this welfare check. I might as well apply a significant portion to the only candidate that I think will seriously address our economy.
The other half will go as an additional payment on the principal on our house. We have no credit card or school loan debt but we have no real savings either, apart from my 401K (which my work automatically puts in money) and life insurance (which I pay into every month).
My goal is to get our overhead down as low as possible and pay off our house early. That is where all of our extra money goes.
Posted by ketchupqueen (Member # 6877) on :
quote:Hands up who's married to a tax accountant...
*raises hand*
Actually, he informs me it's closer to $4800, and that we'd also qualify for at least $1200 under the new deal they just reached (in addition to our regular refund.)
Not that I'm really thrilled about this-- I would rather see that money go toward, you know, education or health care. But as I told him, I guess it will be-- I'll spend it on our family's education and/or health care, in the end...
*lists things to buy before the new baby comes* Three car seats to fit three across in our Corolla, stroller to replace the one that's falling apart, play pen to replace the one the toddlers destroyed last year... This is starting to look expensive...
(He also informs me he's changed our withholding so that next year we'll get only a very small refund, but we'll get more through the year. Which is fine by me.)
Posted by Enigmatic (Member # 7785) on :
That's a pretty good idea. If you're getting almost $5k back on your normal refund, I'd say your withholding is too high.
--Enigmatic
Posted by brojack17 (Member # 9189) on :
It looks like it is a done deal now.
Linky Posted by El JT de Spang (Member # 7742) on :
Well, if I'm only going to get $600 then I'm just going to take it to Vegas and bet it all on black.
Posted by Xavier (Member # 405) on :
Would be sweet irony if I took the 600 bucks and donated it to the Obama campaign.
Posted by TomDavidson (Member # 124) on :
I am so freakin' sick of government stepping in to save people from foreclosures. Don't they realize that saving people from foreclosure is what CAUSES FORECLOSURES?
Posted by Enigmatic (Member # 7785) on :
Yeah, I want more details on what that part involves. I can't help thinking "Hey, I'm a first-time homeowner and I'm NOT in danger of foreclosure... shouldn't I at least get a cookie?"
--Enigmatic
Posted by kojabu (Member # 8042) on :
So I've had a full time job since June and I've had at least 2000-3000 taken out in taxes, but my dad claimed me as a dependent for last year. Will I get a rebate or will he get my money?
Posted by Icarus (Member # 3162) on :
quote:Originally posted by Kwea: . . . there is a fairly active Hatrack clump in the Kissimmee area as well. . .
Liar. Posted by ketchupqueen (Member # 6877) on :
quote:Originally posted by Enigmatic: That's a pretty good idea. If you're getting almost $5k back on your normal refund, I'd say your withholding is too high.
--Enigmatic
Well, actually, he was withholding at a sensible rate the first job he had, lost it, had a few months where he didn't work, and withheld nothing for Federal at the next job. But he plans to be at this job from now on so he actually sat down to crunch the numbers and see what's the highest he can withhold and not owe anything at the end of the year-- and we'll STILL get a refund. Having kids does that. Also, our refund wasn't going to be quite as high until he factored in that he was a full-time student for part of last year and that offset our liability.
Posted by Artemisia Tridentata (Member # 8746) on :
My Honey says she is going to be crusing on our next anniversery. She asked if I had any intention of being there too. I would probably use the money for that.
Posted by ketchupqueen (Member # 6877) on :
LOL! She's going with or without you, huh?
Posted by Paul Goldner (Member # 1910) on :
I wish, instead of giving tax rebates, and tax cuts, we'd, you know, cut our deficit a little bit?
Its pretty sick how much of our taxes go towards paying INTEREST on the national debt. We get that thing under control, and we can keep the same programs and drop everyone's taxes not just for one year, but long term.
Posted by rivka (Member # 4859) on :
quote:Originally posted by Enigmatic: Yeah, I want more details on what that part involves. I can't help thinking "Hey, I'm a first-time homeowner and I'm NOT in danger of foreclosure... shouldn't I at least get a cookie?"
You should. And people like me, who crunched the numbers and decided buying a house was way too likely to result in foreclosure should get something too.
How about help with a down payment? Posted by anti_maven (Member # 9789) on :
Tax time is odd here in Spain. I can't make head nor tail of how it works - and belive me I have tried.
Still, I seem to get about 1500 Euros rebate each year, so I'm not complaining.
The truth is Mrs_Maven and I got an accountant to do our tax returns when we bought our house, in order to navigate the burocracy. It only cost us 100€ so we go back to him each year. It saves us time money and hassle and I consider it money well spent.
I suppose that the rebate scheme works out in the end - the Govt. has you money earning interest for a year before they have to give it back...
Posted by Sterling (Member # 8096) on :
quote:Originally posted by TomDavidson:
quote:They're loaning us some money in advance which we'll have to pay back next tax year?
Heh. They're loaning us money that we'll have to pay back some time around 2015 in the form of foreign wars.
Optimist. You think we're going to have to wait that long?
![[Smile]](smile.gif)
I've been wanting to take the kids for years and now the younger one is finally old enough and mentally capable of dealing with the larger rides. ![[Razz]](tongue.gif)
![[Wink]](wink.gif)