Last week the President proposed a new economic stimulus package. It would be similar to the checks that were sent to taxpayers in 2001 to stimulate the economy.
Details from CNN include:
- $600 for individuals and $1200 to joint filers who paid income tax.
- Cut in half if no income tax was paid but earned more than $3,000.
- Possible additional amounts of around $300 per child.
If that bill passed in the proposed form, it would likely mean $1,800 for our household. Unfortunately, I don’t see running out and spending any of it. A windfall like that would go straight to our investments. We finished 2007 just shy of our goals, so giving our dollar plan a little boost would be my primary goal.
The intent of these checks are to get people to spend more money. I wonder how many savers there are out there that wouldn’t be using the checks.
What would you spend your check on if the bill passes?
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I’ll probably end up saving our $1200 it at first, but chances are we will use the money to pay for some future expense we are planning on incurring within the next year - like having a baby or getting a car once one of them breaks down. We may even give a portion of it away.
StewardJanuary 25th, 2008 at 5:38 pm
You’d still be helping the economy. If you put money into a savings account, you’re giving banks more deposits to lend out. This can help small businesses find funding. If you put money into the stock market, then some company out there will have more capital, enabling them to grow. It may not have as big of an impact as consumption, but saving/investing does more than zilch.
LilyJanuary 25th, 2008 at 5:56 pm
I’ll be spending anything on debt! No new purchases!
AmandaJanuary 25th, 2008 at 8:01 pm
Yeah, I’ll pay off some debt. I’m glad to get it, but I’d be just as happy if they were paying our govt debt with it.
PT from Prime Time MoneyJanuary 25th, 2008 at 9:45 pm
Any money I get from this plan will go straight toward my debt. I don’t like the plan, but if I’m going to get the money, I’m certainly not going to waste it. Looks like we are all ‘bad’ for the economy!
EdenJanuary 26th, 2008 at 7:08 am
I would either save it or use it to pay on one of our loans. I’d love to knock that thing out!
MrsMoneyJanuary 26th, 2008 at 3:46 pm
It would go straight to one of my wife’s credit cards.
FlaimeJanuary 29th, 2008 at 10:53 am
It’d go straight to my investments too!
Rule One InvestingJanuary 29th, 2008 at 9:53 pm
It would probably go back to taxes, as I do not make enough to have federal or state taken out. I usually end up owing state at the end of every tax year.
HopeApril 30th, 2008 at 11:17 am