Perusing my online banking statement recently, I was surprised to see a line item I have never seen before: US TREASURY 220 TAX REFUND. Not only that, but whoever US TREASURY 220 TAX REFUND is, they happily credited US$600 into my account!
Thanks to the Economic Stimulus Act of 2008, this was, in fact, the doing of our federal government, essentially returning to the American people what is already theirs, but returned with the expectation that we might go shopping!
The theory goes, that by providing targeted individual tax rebates to Americans, we will then spend this money on flat screen TVs and Sea Doos, thus, jump starting our slowing, yet not officially recessionary, economy through mass consumer spending. Brilliant! Give us back our hard earned money that has been assumed through taxation, so that we can spend our way out of a sluggish economy that has ironically been brought on by belligerent overspending by a debt-ridden middle class in the first place.
To the careful observer, the apparent components of a healthy economy are now evident in what the US government is trying to temporarily achieve by the passing of this Act: 1) reduce taxes in the first place, so the people, and not the government, can drive spending, and 2) for crying out loud, if you must spend, spend wisely, and only spend what you have. The duo of increasing consumer debt and overly burdensome taxes have brought us to this juncture, and the solution so many cannot see is the need for a conservative fiscal policy, in both the halls of Congress and in homes across America.
Spend wisely!
Nice writing style. I look forward to reading more in the future.
As happy as individuals are business should be smiling also. While you are are checking out the Economic Stimulus Act Of 2008 InterDyn BMI has some good ideas how businesses can leverage it to their benefit.