It looks like we're gonna get it

[Ed62]

What are you going to buy with your tax refund? Someone wrote a letter to our local newspaper, suggesting that the refund should come in a voucher to buy only products made in the U. S. Not a bad idea if you want to help the economy.

FWIW, this is a bi-partisan thing, so let's not make it political. What are you buying?

Ed

[JoeyGee]

I assume you are referring to the tax rebate as bestowed upon us by our fine Federal Government?

I will be purchasing a new PC and getting a head start on grad school. Real exciting stuff, I know.

[leehljp]

I don't get one!

[atgcpaul]

Although I don't particularly want the refund, I have a feeling it is going into our
outdoor patio fund.

[Hellrazor]

I think I am going to throw it into a CD and let it ride for a while for future use.

[LCHIEN]

you're supposed to spend it although going into a CD I guess makes it available for someone else to spend, if they borrow from a bank.

I hope we don't all buy chinese made tools at harbor freight

[final_t]

It's not a voucher, it's a rebate like they did 5-6 years ago - you'll pay it back the following tax year. (if you think about it, a voucher program is hugely expensive to operate, and they are already complaining about this cost).
Either use it to pay down your mortgage or invest it. You don't need more stuff unless it's replacing something that's broken.

[Hellrazor]

you're supposed to spend it although going into a CD I guess makes it available for someone else to spend, if they borrow from a bank.

I hope we don't all buy chinese made tools at harbor freight

Loring,

With the economy all screwed up, I bet a lot of people will stick the money in the bank. I plan to roll both my refund and rebate checks into short term cds. I'll buy a new toy err tool sometime down the road when a nice sale hits.

[Black wallnut]

My non-political answer: From a purely economic view: world trade benefits both sides. Please keep in mind the global nature of our forum. I think we should all use it to buy expensive Canadian dovetail jigs!

[LCHIEN]

Well, there's an interesting multiplier effect in economics. It says that every dollar injected into the economy as a stimulus gets spent, in part, over and over. E.g. you buy something for $100.
$50 goes to the manufacturer
of that $50, $20 goes to the steel mills and other raw materials, 20 to the laborers and 10 to the manufacturers stockholders
$50 goes to the retailer
of which $20 goes to the store rent, utilities, 20 to the store clerks and managers and $10 to the store owners.

So you can see, most of that money will get spent again... the clerks and laborers will buy things with their overtime and bonuses, the manufacturer will pay bills, have materials delivered, re-invest in new equipment etc.

I can't seem to find the figure, but economists know that $100 given to a person as a reverse tax can have a effect of like $500 in gross national product as it gets spent over and over. It doesn't go on forever and ever since eventually some will be leaked off for savings and investment. And some will be used for buying foreign goods and part of the purchase will then be diverted from improving the national gros product.

OTOH, it theoretically takes $100 of government spending out of the economy, although in practice, they never have a balanced budget and in the case of the current rebate discussions, I haven't heard where they plan to get the money (like not spending for defense, space, social security or upkeep of government buildings and infrastructure).

[Mr__Bill]

Hmmm wonder how many will use it to pay taxes come April?

[LinuxRandal]

It is probably going in savings for a while, unless I find time to get my kitchen project started (down on the list this year). Then some wood and plywood of course.

[JR]

Hmmm wonder how many will use it to pay taxes come April?

It's supposed to be a rebate against your 2007 taxes. I think they keep saying it will come in May.

It is probably going in savings for a while, unless I find time to get my kitchen project started (down on the list this year). Then some wood and plywood of course.

As Loring has pointed out, we're "supposed" to spend it. Not that it's a bad thing to add to savings! But sepending it is what stimulates the economy.

JR

[DonHo]

"OTOH, it theoretically takes $100 of government spending out of the economy,"

This is a good thing, we do a better job of spending than the government. I don't have a single $500 hammer or $1200 coffee pot in the house


DonHo

[SARGE..g-47]

And after putting in an esrow saving account.. our $1200 will be spent indeed next August to pay land taxes as my home is paid off. I had my accountant do my taxes yesterday so.. that $3 K return goes to the same account as it pays all auto and home-owners insurance for the year in lieu of it sneaking up on you and what do I do now syndrome?