TAX REBATES
Families are getting government checks in the mail. In most years this is bad (the tax payer gave the government too much money; the government had it instead of the individuals). 2009, however was bad for most of us. The worst recession in decades made money extremely tight.
The government sent out checks and increased tax deductions to help ease the pain a bit. Many are paying outstanding bills or putting the money in the bank. While this seems like a good thing to do, consider the impact on the economy if every refund dollar went to debt or bank accounts: there would be less demand for goods and services, therefore companies would not hire workers, prolonging unemployment.
Think through what you will do with your refund: pay over-due bills, put some in the bank, and buy something that needs replacement. After all, the bargain prices won't last forever.
(In our case, the dishwasher suffered cardiac arrest so we got a new one.)
The government sent out checks and increased tax deductions to help ease the pain a bit. Many are paying outstanding bills or putting the money in the bank. While this seems like a good thing to do, consider the impact on the economy if every refund dollar went to debt or bank accounts: there would be less demand for goods and services, therefore companies would not hire workers, prolonging unemployment.
Think through what you will do with your refund: pay over-due bills, put some in the bank, and buy something that needs replacement. After all, the bargain prices won't last forever.
(In our case, the dishwasher suffered cardiac arrest so we got a new one.)
Labels: Tax Rebates
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