Show-me Account Talk

[GGal]

OK, if it is a advance and I get $1200 "rebate". Will that amount be reduced from my 2008 refund? Example I should ge a $1200 refund for my 2008 income taxes but the $1200 rebate nulls that out so I get zero.

The answer is: no, your refund calculated on your 2008 return will not be reduced by the refund you get this summer.

That said, if they did not send out the early "advances" on the rate cut for 2008, but instead waited and let you get the rate cut when you file the 2008 return, your refund would be larger on your 2008 return.

But that's not even up for discussion, because this is an economic stimulus plan. They are doing a one time lowest bracket rate cut for 2008, and giving you the money up front this summer because they want you to spend it now, not when you file the 2008 return.

You won't even know about the effect on you 2008 return, because the way its handled is, they just don't change the tax rate tables for 2008, and instead give you the tax rate cut this summer.

 

[hessian]

Anyone notice,
During the the last big Bush/Federal Tax cuts, how in the same year - your State taxes almost doubled?? This was the case in Maryland, my State, but I expect likely similar, with some variation among most States.
Anyway, my assessment is whatever Fed tax cuts we get, the States will just pounce - take it as opportunity to jump, increase their rates, and run us to the Cleaners [again]!

Sorry, but last time this happened, it pissed me off BIG time! Between Fed tax cut, and subsequent State increases (same year and continuing), I know I'm paying much more in taxes now!

We don't learn from history - so I expect we're doomed to relive it [again].

 

[Birchtree]

I have it on good authority that Show-me is only going to donate his rebate to Obama anyway.

 

[nnuut]

Anyone notice,
During the the last big Bush/Federal Tax cuts, how in the same year - your State taxes almost doubled?? This was the case in Maryland, my State, but I expect likely similar, with some variation among most States.
Anyway, my assessment is whatever Fed tax cuts we get, the States will just pounce - take it as opportunity to jump, increase their rates, and run us to the Cleaners [again]!

Sorry, but last time this happened, it pissed me off BIG time! Between Fed tax cut, and subsequent State increases (same year and continuing), I know I'm paying much more in taxes now!

We don't learn from history - so I expect we're doomed to relive it [again].

Why do you think the State raised taxes after the Bush tax cut? Where did Bush get the money for the tax cut? By cutting programs to the States? I think that is what happened, but just conjecture.

 

[hessian]

Why do you think the State raised taxes after the Bush tax cut? Where did Bush get the money for the tax cut? By cutting programs to the States? I think that is what happened, but just conjecture.

You may be right regarding the reason. All I know is the affect - I know I'm paying MORE now, year after year, sum-total, than before the Fed cuts! From taxpayer perspective, I gotta say, I think it all just bait-and-switch.
VR

 

[Show-me]

Stash It, Don't Cash It

by Suze Orman

Posted on Friday, February 8, 2008, 12:00AM
By now you've heard that the latest economic stimulus package has passed both houses of Congress, and is set to be signed by President Bush this week. If you're in line to get a sizable rebate check in the mail this spring, think twice about doing what the government wants you to do with it.
Stimulating Savings
That's because if you're planning to use your Washington mini-windfall at the mall or a car dealership, you're playing into the government's theory that your spending will stimulate the economy and all will be well. Or at least all will be better.
I don't agree with that approach on any level. The economy isn't floundering because we aren't spending enough; it's floundering because we're spending too much, largely on credit. So do the opposite of what the government is hoping for -- it's far more important for people to boost their savings, not their spending.

More here............

http://finance.yahoo.com/expert/article/moneymatters/65848;_ylt=AhBsxkDI5Q9ar_FjXgZ_h527YWsA

 

[Show-me]

I have it on good authority that Show-me is only going to donate his rebate to Obama anyway.

My money goes to my Roth if anything left over it goes to my wife and kids.

 

[Show-me]

I appreciate the discussion here today. I learned alot. Thank you!

 

[Show-me]

 

[Show-me]

 

[Show-me]

 

[dickster]

Why do you think the State raised taxes after the Bush tax cut? Where did Bush get the money for the tax cut? By cutting programs to the States? I think that is what happened, but just conjecture.

If you look carefully at this year's feeble attempt to stimulate the economy, you will see that all we are really doing is borrowing money from ourselves! This tax "rebate" is a loan on next years earned income credit. However, if you make less next year than you did this year you do get to keep the difference, and to that end, I intend to contribute as much as possible to TSP this year. I have already dedicated my pay raise to my TSP account and I will soon change my withholding to eliminate any excess (money that would have just gone to next years tax refund) and contribute that to TSP as well.

 

[nnuut]

If you look carefully at this year's feeble attempt to stimulate the economy, you will see that all we are really doing is borrowing money from ourselves! This tax "rebate" is a loan on next years earned income credit. However, if you make less next year than you did this year you do get to keep the difference, and to that end, I intend to contribute as much as possible to TSP this year. I have already dedicated my pay raise to my TSP account and I will soon change my withholding to eliminate any excess (money that would have just gone to next years tax refund) and contribute that to TSP as well.

Sounds like a plan to me Dickster. Taxes don't you just love them?:laugh:

 

[Silverbird]

State Taxes - Often supplemented with Real Estate Taxes.
Real Estate - Prices on properties dropping
States - Expected Real Estate to continue rising, now looking at deficits.
State deficit spending - not allowed
State raises taxes.
That's my theory

 

[kar_crazy]

State Taxes - Often supplemented with Real Estate Taxes.
Real Estate - Prices on properties dropping
States - Expected Real Estate to continue rising, now looking at deficits.
State deficit spending - not allowed
State raises taxes.
That's my theory

DONT FOOL AROUND TONIGHT

 

[dickster]

State Taxes - Often supplemented with Real Estate Taxes.
Real Estate - Prices on properties dropping
States - Expected Real Estate to continue rising, now looking at deficits.
State deficit spending - not allowed
State raises taxes.
That's my theory

Where have I heard this before?... Oh, that's right the last time there was an attempt to stimulate the economy!!!

 

[GGal]

Well, I agree.....I've advised my children to apply their rebate to debt.

Stash It, Don't Cash It

by Suze Orman

Posted on Friday, February 8, 2008, 12:00AM
By now you've heard that the latest economic stimulus package has passed both houses of Congress, and is set to be signed by President Bush this week. If you're in line to get a sizable rebate check in the mail this spring, think twice about doing what the government wants you to do with it.
Stimulating Savings
That's because if you're planning to use your Washington mini-windfall at the mall or a car dealership, you're playing into the government's theory that your spending will stimulate the economy and all will be well. Or at least all will be better.
I don't agree with that approach on any level. The economy isn't floundering because we aren't spending enough; it's floundering because we're spending too much, largely on credit. So do the opposite of what the government is hoping for -- it's far more important for people to boost their savings, not their spending.

More here............

http://finance.yahoo.com/expert/article/moneymatters/65848;_ylt=AhBsxkDI5Q9ar_FjXgZ_h527YWsA

 

[dickster]

I'm just a regular guy, but it seems to me that if we truly wish to stimulate OUR economy then we should stop illegal immigrants from coming across our borders to take advantage of our social services, taking what few jobs there are and sending the money back to Mexico, and then not bothering to pay taxes on the income.

Maybe we should make it a point to never buy anything from any company that claims to be an American company but can't employ Americans in this country to make it's products.

Maybe we should make it a point not to buy anything " Made in China".

After all, when it comes right down to it it's pretty hard to stimulate OUR economy when all of OUR dollars end up in China, or Japan, or Mexico, or India.

 

[ezmoney]

Amen from the hallelujah corner. My thougths exactly.

 

[Show-me]

Not a exact quote but Ross Perot said "when US wages come down to $6 a hour and Mexican wages come up to $6 a hour, problem solved."