Tax Cut 2008

Will the government really stimulate the economy by issuing these rebates? The government is going to give an extra rebate of $600 if you are single or $1200 if you are married, plus an extra $300 per child. In this article it says that the rebate is just going to be a 2008 rebate that are received on the 2007 tax return. This seems to me like the government is looking for a quick fix, and if the people who get this extra rebate spend their money the stimulus package will have a postitve effect.


William said...

I agree with you and think that this is just a quick fix and feel that in the end it can actually be something that can hurt our economy. I just read an article stating that many times when the government tries to keep us from going into a recession and tries to stimulate the economy they actually do the opposite. This was seen in the late 70's. I do not believe that this is best for our current economy. Throwing money at something won't make it better.

Dr. Tufte said...

Unfortunately, that's kind of the Keynesian prescription: throw money at the economy when there is a problem.