Is your Bonus check going into your system?

[Mort Corey]

I read what I thought was a pretty good anaolgy as to the results of this rebate scheme.....it's like taking a bucket of water from the deep end of a swimming pool, dumping it into the shallow end, and expecting the water in the shallow end to be deeper because of it.....thought it fit pretty well.

Mort

 

[Alamar]

Rant Alert about the tax loan [not rebate]

I read what I thought was a pretty good anaolgy as to the results of this rebate scheme.....it's like taking a bucket of water from the deep end of a swimming pool, dumping it into the shallow end, and expecting the water in the shallow end to be deeper because of it.....thought it fit pretty well.
Mort

From what I can tell the tax rebate plan isn't a "rebate scheme" as you suggested but seems more like a tax rebate sham.

What makes me mad is the politician's choice of calling the stimulus package a "tax rebate plan" instead of calling it what it is "a tax loan against your 2008 tax balance".

If my understanding of the plan is right:

1. If the refund check for the 2008 taxes [that are due April 2009] would normally be more than 1200$ then your tax return will be 1200$ lower than it would have been.

2. If you get a refund, but it's less than 1200$, then you owe the difference.

3. If you owe taxes then you owe 1200$ more than you would have otherwise.

I don't need the government playing loan-shark. I need the govt to give me REAL tax relief and while they're at it why not slash the runaway spending while they're at it. THAT WILL GIVE THE ECONOMY A REAL BOOST.

****************************************************

Note: IF the rebate plan was a REAL tax cut I'd go out and use that to buy a subwoofer or two. Seeing that it's just a loan I'm just going to stick the money in a 1 year CD --- so the govt is going to get the money right back but at least they'll pay me some trivial difference.

BAH HUMBUG ....


BTW: I should have read the fine details about the tax plan sooner. Well at least I read the details before I spent the money

 

[Mort Corey]

****************************************************

Note: IF the rebate plan was a REAL tax cut I'd go out and use that to buy a subwoofer or two. Seeing that it's just a loan I'm just going to stick the money in a 1 year CD --- so the govt is going to get the money right back but at least they'll pay me some trivial difference.

Don't forget that the trivial difference gets taxed too....so after that, and factoring in inflation in the iterim, you might be better off sending it back in the first place and save a little money in the long term.

Mort

 

[10010011]

If my understanding of the plan is right:

1. If the refund check for the 2008 taxes [that are due April 2009] would normally be more than 1200$ then your tax return will be 1200$ lower than it would have been.

2. If you get a refund, but it's less than 1200$, then you owe the difference.

3. If you owe taxes then you owe 1200$ more than you would have otherwise.

This is what happened last time they did this. I remember getting something around $600 and then owing around $400 in taxes at the end of the year. Came as quite a shock as we always got a refund before and after that. My mother-inlaw said we had been "Bushwhacked" and a lot of other people she know had the same thing happen to them.

BTW: Who get a $1200 tax refund?

 

[Alamar]

This is what happened last time they did this. I remember getting something around $600 and then owing around $400 in taxes at the end of the year. Came as quite a shock as we always got a refund before and after that. My mother-inlaw said we had been "Bushwhacked" and a lot of other people she know had the same thing happen to them.

BTW: Who get a $1200 tax refund?

I need to start a new thread to rant about the "rebate" that is really a "loan" ...

As for the refund thing I USED to do that when I was younger because I didn't want to be bothered with having to send in even more money .... of course I was stupid when I was younger

Now, and for the last 10-15 years, I try to plan things out where I owe 100-200$ or so. That way I get to use the $ until April 15 instead of the govt.

 

[10010011]

As for the refund thing I USED to do that when I was younger because I didn't want to be bothered with having to send in even more money .... of course I was stupid when I was younger

Now, and for the last 10-15 years, I try to plan things out where I owe 100-200$ or so. That way I get to use the $ until April 15 instead of the govt.

I have thought about doing the same thing. But would rather get a small refund then have to pay. In reality things should come out even. We have managed to get it pretty close in the past few years, getting a couple hundred dollar refund.

I am thinking more and more that we should just hold on to this money because we are just going to have to pay it back next April.

 

[Alamar]

Potential Correction: From my [new] understanding congress may have created a new, 1 year only, "tax credit" for the 2008 tax season. Thus your 2009 return should be 1200$ [or whatever] more than it would have been otherwise.

Then they are letting you get the tax credit money in May 08 instead of April 09 ....

*************************************************

If my updated understanding is correct then this is at least a "tax rebate" instead of purely being a "tax loan" [or close enough for govt work].

 

[Halon451]

From what I can tell the tax rebate plan isn't a "rebate scheme" as you suggested but seems more like a tax rebate sham.

What makes me mad is the politician's choice of calling the stimulus package a "tax rebate plan" instead of calling it what it is "a tax loan against your 2008 tax balance".

If my understanding of the plan is right:

1. If the refund check for the 2008 taxes [that are due April 2009] would normally be more than 1200$ then your tax return will be 1200$ lower than it would have been.

2. If you get a refund, but it's less than 1200$, then you owe the difference.

3. If you owe taxes then you owe 1200$ more than you would have otherwise.

I don't need the government playing loan-shark. I need the govt to give me REAL tax relief and while they're at it why not slash the runaway spending while they're at it. THAT WILL GIVE THE ECONOMY A REAL BOOST.

****************************************************

Note: IF the rebate plan was a REAL tax cut I'd go out and use that to buy a subwoofer or two. Seeing that it's just a loan I'm just going to stick the money in a 1 year CD --- so the govt is going to get the money right back but at least they'll pay me some trivial difference.

BAH HUMBUG ....


BTW: I should have read the fine details about the tax plan sooner. Well at least I read the details before I spent the money

This is really kind of disappointing, but expected. When I first learned of the "tax rebates" coming, I kind of merely shrugged it off, as I'm already owing Uncle Sam a ton of money this year anyway, I figured at least it might help offset the margin a little bit. I haven't really paid attention to the specifics of what is taking place here. Good post - thanks for bringing it to light. Seems like we're stuck between a rock and a hard place as usual...

 

[MUDSHARK]

Much mis-information being posted.

The rebates are tied to a reduction of the 10% bracket from 10% to zero for the first $6,000 of taxable income in 2008. The rebate is in essence a pre-payment of 2008 taxes. Either a check this year or an equal tax`credit with the 2008 return.

The same was true in 2001. Nobody paid more tax beacuse of the rebate check.

 

[Alamar]

This is really kind of disappointing, but expected. When I first learned of the "tax rebates" coming, I kind of merely shrugged it off, as I'm already owing Uncle Sam a ton of money this year anyway, I figured at least it might help offset the margin a little bit. I haven't really paid attention to the specifics of what is taking place here. Good post - thanks for bringing it to light. Seems like we're stuck between a rock and a hard place as usual...

According to MSN money I mislead you. Everything that I posted is accurate per-se but I left something important out. MSN Money says that congress created a new, 1 year tax credit. Instead of letting you get that in 2009 they are letting you get that in 2008 instead.

It is technically a loan of the EXTRA refund that you'd be getting in 2009 but at least it's not as bad as I thought.

FYI: Sorry for posting potentially misleading info. I will continue to try to educate myself so I "have a clue".

 

[Alamar]

So now that I'm thinking of using the "rebate" as if it were found money then what would you guys do:

1. Use all 1200$ towards a great subwoofer [think SVS PB-13 or similar]

OR

2. Use ~1000$ for a couple of subs-of-the-month which should do a good job[think dual AV123 MFW-15]

OR

3. Use ~1000$ for a single AV123 MFW-15 and some misc. BD player.

NOTE: I have an HD set / no HD sources / [basically] no subwoofer [totally ineffective POS]

 

[MUDSHARK]

I think a great sub-woofer adds more to enjoyment that the Hd source. I have always felt that DVD quality was pretty darn good. The Hd-DVD players and PS3 I merely consider toys but the Outlaw sub is a necessity. SVS would be a great choice. The difference to me between DVD and HD is minor. Now the difference between SD television and HD television is huge.

 

[kzook19]

I've been putting off a surger protector/power cleaner, so I'm definitely getting one of those. I'll earmark the rest for an entry-level sub...