There have been quite a few rumors about a possible 2009 tax rebate that would exceed what we all received from the 2008 rebate. Being an election year, each side wants to make their candidate shine right before November, and giving cash to Americans seems to be a way they are willing to do it.
Touted as “Son of Stimulus” by Democrats, the stimulus plan will push more money to taxpayers this fall. Earlier reports are that the amounts could be in the upwards of $150 billion, which would possibly equate to $700 – $800 per person. This plan is backed my financial advisors who claim that the 2008 rebate did not do enough to stimulate the economy. Most Americans ended up either saving it or buying gas. Another set of people are still waiting for their checks due to glitches the IRS encountered while trying to distribute the first round of checks.
Others question the value of a second tax rebate. The jury is still out as to whether Americans will actually spend this money and not just throw it under a mattress fearing higher and higher prices. President Bush has clearly expressed his concern with passing another tax rebate. Now that the government is planning a multi-trillion dollar bail out of the banking industry, there are questions as to if there is any money left to give out, but there are conversations going on trying to include a tax rebate into the buyout bill.
As part of his campaigning effort, Barack Obama has proposed a tax rebate that would give each person around $1000 to help offset rising good and gas prices with the hopes of increasing consumer spending. His plan to pay for this would be to tax oil company profits. If Barack were to make it into office in January the timing on this would be critical since no one knows what the economy would look like by the time January rolls around and he could get something like this approved.
Many Americans are frustrated that they have to foot the bill for others who got themselves into these financial jams. The only question is can we survive with all the outpouring of money to these bail outs and military funding. Sooner or later we are going to be required to pay up on our debts. Unfortunately this is too little too late. The economy as a whole needs to be saved and fast before more people start losing their retirements and financial securities. I just hope another tax rebate is a tool that can help us get there.