Friday, January 25, 2008

The tax rebates explained

If you're like many people, the confusing nature of the recently passed tax rebates probably requires some explanation. Thankfully, I'm here to help.

What it does is take, say, $600 from the pockets of high income taxpayers and investors, and puts it into the hands of people who aren't paying a whole lot in taxes.

Why is this so important? Well, it should be obvious to you that the economy benefits far more when my family goes to, say, "Famous Dave's", than it does when a rich person takes his family to "Manny's" and the economy benefits far more when I get my 1997 pickup repaired than when a rich person buys his new Caddy in a year or two. It also goes without saying that the economy benefits immeasurably more when I fill out my family's Roth IRAs, than when some person more prosperous than I does the exact same thing with the exact same amount of money.

Make sense? If it does, you're either breaking the law, or you live in a state where medical marijuana is legal. Just make sure you're buying the domestic stuff, so the economy gets its boost.


Mercy Now said...

I dunno if most will buy domestic tho w/ this money. They'll go buy more Walmart stuff and so forth which for the majority of cases are imports. As for me, it goes to some sort of investments.

Bike Bubba said...

Actually, no; it turns out that 2/3 of recipients use their loot to pay off debt or save, according to the WSJ. Apparently the citizens are smarter than their government, believe it or not.

Mercy Now said...

Ah, the citizens spend their own $$ while the govt spends others $$$$$$$$:o)