The Bush Tax Rebate Plan

Bush Tax Rebate Plan White Paper  <- Click to see your rebate

There’s a lot of anticipation and speculation about the tax rebate plan effective the upcoming filing period. Washington should be complemented for an effort to to throw a lifeline to the sinking economy but I’m not so sure this will breathe life back into the existing state of the economy alone. The idea is that rebate receivers will go out spend the additional funds, thus boosting the economy. Some will, some will never see it, some will simply invest it or sit on it.

The ones that won’t see it are the ones that have IRS balances, or will have. I don’t think the IRS is going give money to taxpayers that owe them. That’s something they are not known for, even if they were, most people would still simply send it back to pay off tax balances.

Then consider the large number of homeowners and investers hit with a huge loss of home equity in the last  year,  credit card debt, inflation, and the uncertainty of the economy, and its a sure bet a large chunk of these rebates will ever find their way out of the bank and into the retail arena. But then, the administration didn’t plan to it for this segment,  quote “Proposed stimulus measures linked to housing and mortgages are no longer a top priority after being discussed in White House talks that began in late November”, the official said. ( http://www.freedom4um.com/cgi-bin/readart.cgi?ArtNum=70628 )  Most households will use the rebate to pay down debt or boost savings and investments. The key words here are pay down. Being able to pay off would benefit the taxpayer and the economy.  

Depending upon the size of one’s debt, and the amount of the rebate, this may or may not have an impact on the debt or the economy. Don’t get me wrong, with the state the economy has fallen into, every little bit is welcomed by all affected, but I don’t think this is going to pull a lot of people out of foreclosure or boost the job market. Eight hundred dollars is a stretch to acquire that computer and necessary trimmings for that home based business start up that could realistically contribute to the economy. This is fast money designed to be spent faster. And that’s pretty much going to be the way this pans out.

The recipients that can afford to spend it will do just that, splurge, and close the case. Where and how they spend it would determine the impact and outcome of the plan. Something Washington can’t control, and I feel is the flaw.

Be sure to click the link at the top of this post for a breakout and view of your proposed rebate. It would be interesting to hear  diverse input on this.

Have Good Weekends Instead of a Couple of Days Off

For those of the working population fortunate enough to have the traditional weekend days off after five days of work, kids, commutes, bills, and depressing TV news, you should take a different approach to the two days that bring closure to the week gone by.

I feel safe in saying a large number of the worldly population has sort of fallen into the routine of letting the weekends come and go for the most part. Yes, it’s a geared down transition from the preceding week for most and we get a chance to maybe catch a few breaths and spend a little more time with family and friends. But are we really making the most of this time?

If the mindset is “it’s a couple of days off” you’re probably not getting the best return on these two days because you investment is minimum. Here is what I propose………….

• Plan an unusual activity for say, Saturday, something you wouldn’t normally do, something different. Step away from the norm for a change. Early morning Bread & Breakfast with the significant other, take the kids on a mid day tour someplace interesting, or treat yourself to a spa pampering, or helicopter (yes) ride. Have coffee at a quaint out of the way small subtly lit coffee shop with just coffee, newspaper, and a small notebook.
• Get out of the house and away from anything work related ( leave the Blackberry /Treo devices at home). You’ll be amazed at how liberating it feels to be without them for a day. I’ve always said, if someone is managing or running a company or business that cannot survive without contacting them for one day, well it’s not being ran very well.
• Give yourself a break from the home chores. Attempt to get them done if possible during the work week for a change by using clever cleaning schedules, and downward delegation to other members of the household and pets ( yes get the pets in on it, they should at least pick up their toys) I wouldn’t look forward to time off either if in reality I still have to work.
• See a play instead of a movie (you’re going to buy the DVD anyway. And take a cab, let someone else drive you for a change. Watch a live band perform. Go to a college or high school sports activity, it’s amazing the passion people that aren’t getting millions to play put into a game or contest.

Where this is going is start enjoying your time away from work by breaking out your “routine” I’m not advocating abandoning your basic responsibilities and commitments but I am suggesting spicing up your free time with different activities. You’ll advance socially, learn something new, and approach Monday morning with a brand new attitude.