Tax Rebates

Yesterday Congress passed and President Bush will sign a tax rebate plan. This is about as short sighted of an economic stimulus plan as you could possible come up with, but here are the details:

1) If you earn a paycheck and do not pay any income taxes you will receive $300 ($600 if married filing jointly)

2) If you earn a paycheck and actually pay income taxes you will get $600 ($1,200 if married filing jointly)

3) If you have children you will get an additional $300 per child

If you are married and your household income is over $150,000 there will be "no soup for you". After all you are already rich and do not need any economic help. (I'm of course being sarcastic) If you are single and earn more than $75,000 you also will not be receiving anything. The rebate starts to phase out at these income levels and unless you have children you will likely receive nothing.

This is a feel good rebate that most taxpayers qualify for. Instead of actually stimulating the economy by perhaps cutting the corporate rates to make them competitive with the rest of the world or extending the Bush tax cuts, Congress and the President took the easy way out and this move will do absolutely NOTHING to prevent a recession. But at least it's not a tax break for the rich.