The Economic Stimulus Game: Reductio Absurdum
President George W. Bush signed into law today the Economic Stimulus Act of 2008 (H.R. 5140). The wording is unusually complicated, intelligible only to tax lawyers. However, in going over it paragraph by paragraph with a CPA coworker, we've determined that the rebate process appears to work as follows:
Aside from the complications invloved, AP expresses doubts about the effectiveness of the package:
- The Bill sets up rules for calculating a credit toward your 2008 taxes.
- You get a rebate based on applying the same rules to your 2007 taxes.
- In 2008, the credit is reduced by the amount of the rebate you receoved (but not below zero).
Aside from the complications invloved, AP expresses doubts about the effectiveness of the package:
"A recent Associated Press-Ipos poll indicates most people have other plans. Forty-five percent said they planned to pay off bills, while 32 percent said they would save or invest it. Only 19 percent said they would spend their rebates."
Could this be a blatant attempt for incumbent lawmakers to woo voters?
Oh, and the House of Representatives introduced a bill (H.R. 977) yesterday (which got sent to committee) for the purpose of stating:
It appears the politicians are having a field day hoping you'll believe they're actually doing something."That the House of Representatives encourages Americans to use their rebate checks from the stimulus package to purchase American-made goods and services from American-owned companies."
Trackbacks
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2/14/2008 9:32 PM
www.AsymptoticLife.com wrote:
Here's some more information on the new tax rebate program. First and most important: Rebates are calculated based on your 2007 tax return-- so to get a rebate, you've got to file your 2007 return. So get your stuff over to your tax preparer. Filing an extension will delay your rebate.Also note: Some people with no taxable income may still be eligible for a rebate: people on social security, for example. So, even though they don't owe tax, they'll need to file a 2007 tax return to get a rebate ... -
2/14/2008 9:25 PM
www.AsymptoticLife.com wrote:
Here's some more information on the new tax rebate program. First and most important: Rebates are calculated based on your 2007 tax return-- so to get a rebate, you've got to file your 2007 return. So get your stuff over to your tax preparer. Filing an extension will delay your rebate.Also note: Some people with no taxable income may still be eligible for a rebate: people on social security, for example. So, even though they don't owe tax, they'll need to file a 2007 tax return to get a rebate ...
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