The 2001 Tax Rebates Did Not Help Much

[Toro]

So Washington is going to send us a tax rebate check. Awesome. Mine's going into the bank.

In 2001, many households received rebate checks as advanced payments of the benefit of the new, 10 percent federal income tax bracket. A survey conducted at the time the rebates were mailed finds that few households said that the rebate led them mostly to increase spending. A follow-up survey in 2002, as well as a similar survey conducted after the attacks of 9/11, also indicates low spending rates.

http://www.nber.org/papers/w9308.pdf

Its good political theater, but sending rebate checks to Americans did not help the economy much in 2001. When he was Treasury Secretary, Paul O'Neil said rebates would not help since they tried it when he was in the Ford administration and had little effect.

 

[Paulie]

Yeah I read something similar to this the other day about O'neill's feelings from 2001.

Tell me something...this money comes from either printing it, or borrowing it, because we don't even HAVE any money in the budget. So how does that help the economy?

We're either burying ourselves more in debt to probably China, or we're inflating the supply another Billion or so...They expect the dollar's value to INCREASE????

Who's the fucking moron(s) that's allowing this all to happen? Makes you wonder why the Dem's were so quick to approve it.

This is ridiculous. Keep your god damn fake money, and quit spending so much! Those Bush tax cuts would have worked GREAT, if they'd have stopped all the runaway spending ALONG with it. He proposes the cuts, and then he offers No Child Left Behind, and 2 new wars. And no one in congress GAVE A FUCK!

This economy is going nowhere but down. 2 Trillion dollars a year on Defense and Entitlements, and we only bring in 1 Triliion in taxes.

And they want to just get money they don't even have, and give it to the least responsible spenders on the planet...the AMERICAN CITIZENS.

And some of you wonder why I like Ron Paul's message...

 

[bush lover]

The haters of our President and our Country and our Troops will of course dismiss our President's brilliant tax rebate plan. Even if we have to pay back the rebates with next year's taxes, our President is putting our tax money back in our pockets, where it belongs. I am going to buy a bigger plasma TV with mine, but I think I'll get the model made in Korea this time because the one we got that was made in China has kind of faded in the color. I will do my duty to help our economy. If you want to put yours in the bank, I think you are a Bush-hater.

 

[eots]

I Already Have Two Plasma Tvs So I'm Going To Just Donate Mine Directly To Chinas Nuclear Defense Program And Cut Out The Middle Man

 

[Shattered]

The haters of our President and our Country and our Troops will of course dismiss our President's brilliant tax rebate plan. Even if we have to pay back the rebates with next year's taxes, our President is putting our tax money back in our pockets, where it belongs. I am going to buy a bigger plasma TV with mine, but I think I'll get the model made in Korea this time because the one we got that was made in China has kind of faded in the color. I will do my duty to help our economy. If you want to put yours in the bank, I think you are a Bush-hater.

Mine's going in the bank, and I'm not exactly a Bush "hater". Just financially responsible.

 

[Diuretic]

Banking the money is exactly what the rulers of the economy don't want but it makes sense to me. If it were happening in our economy here I'd bank it too.

 

[rayboyusmc]

I bet that most of those who get their money won't remember that they will have to pay it back in the next tax cycle just like last time.

Unless you have a really good tax lawyer and a lot of money.

 

[Paulie]

I bet that most of those who get their money won't remember that they will have to pay it back in the next tax cycle just like last time.

Unless you have a really good tax lawyer and a lot of money.

Yeah, the only problem is, instead of it going into reducing the budget deficit that is being more than DOUBLED this year because of this "stimulus package", it will only be used for more WAR. More borrowing, more printing, more spending.

I say buy gold with this money. But that's just my opinion. Those dollars ain't going to be worth much pretty soon.