How much a Tax Rebate question

[blackangst1]

Originally posted by: loki8481

Originally posted by: ScoobMaster
"...35 million families who make at least $3,000 but don't pay taxes would get $300 rebates. ..."

I suggest our esteemed leaders grab themselves a dictionary and look up the definition of the word REBATE!!!!

Just another form of wealth redistribution (AKA welfare). Nothing new here.

the crux is that poor people are more likely to spend their money on things that would actually inject a shot of adrenaline into the economy -- you know, the whole thing that this is supposed to be.

I patially disagree. People making 60k/year live paycheck to paycheck as do those making 24k/year. They are in the same boat, just a bigger one.

 

[piasabird]

I say just cancel the whole thing. We need less targeted programs designed to buy votes and more spending cuts.

 

[Engineer]

Originally posted by: Uhtrinity
This whole rebate thing is a joke and IS NOT free money. You will get a check if you meet the guidelines, and it will be deducted from your refund the following spring. That is how the last one worked for myself and my wife 5 or 6 years ago. Can anyone confirm if those without a tax refund coming have to pay it back?

The last one was a PREBATE (not a rebate). Congress lowered the tax rate on the first $12,000 of income from 15% to 10% (married - filing joint). The result was a $600 lowering of taxes. Congress then authorized you to receive the next years money early (in June, IIRC). The following year, you did have to add it back in only if you received it to keep from double dipping (as the new 10% rules were in place by then). You continue to receive the 10% tax rate on the first $12,000 to this day.

Esentially, the following year, your taxes, when calculated, were $600 lower than the previous year. Since you had already gotten the $600 back, you had to add it back in (one year only) to keep from double dipping. If you didn't receive the original PREBATE, you didn't need to add it back in and you realized the $600 savings on your tax return the following year.

This years tax is a REBATE. They are esentially eliminating the 10% tax bracket for the past year (2007) and refunding you the money in 2008. That is where the $600 and $1,200 figures are coming from (not sure where the $300 per child is coming from). I guess it's a rebate to those that worked and paid it in. The rest are receiving charity.