My Annual Tax Rant
April 17th, 2008
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I’m going to have to switch my bracelet to do this, but I have to complain about taxes, as I do every year. What’s up with these income tax rebates?
The last time we got rebates to stimulate the economy, the IRS spent a lot of money to send the checks out. I’m not talking about the value of the checks; I’m talking about the cost of mailing the envelopes. I forget exactly how much it cost, but it was at least $100 million.
Not a lot of money for a big country, you say? With a $9.5 trillion debt, I don’t think we can afford to throw away pennies. Besides, isn’t there some program that could use the money for better things than paper, ink, stamps, envelopes, stamp lickers, and envelope sealers?
I don’t remember how they handled the rebates last time, but here’s what they’re doing now. First, they sent out letters to everyone, telling them they might get a rebate. Next, they’re going to send out letters to the people that qualify, telling them that their check is coming. Then they’re going to actually send the checks. How much is this going to cost? Why not just reduce the tax rates and not send any letters?
And another thing, the government wants us to spend the rebates. How is that supposed to stimulate the economy? I don’t see how we can spend our way into this mess, and also spend our way out of it. But it is what it is. I don’t work for the IRS, I just have to deal with them. So I’m off my soapbox…until next April.
Note: I’m away on vacation right now. I’ll respond to comments when I return.
April 17th, 2008 at 9:06 am
Yaron Brook, writing for Forbes, agrees with you. So do many others.
“The focus of today’s stimulus packages on consumer spending is therefore completely backward. Consumption is a consequence of production. This fact is ignored by the Bush plan, which attempts to achieve prosperity through $100 billion in deficit-spending.”
To stimulate the economy, liberate it
Vered - MomGrind’s last blog post..Public Speaking is More Painful Than a Root Canal
April 17th, 2008 at 11:29 am
Hi Hunter,
That is very true. An extraordinary amount of money is being spent on the processing of the rebates…not to mention the labor to handle all of this additional paperwork.
As much as I believe we need some type of stimulus, like you, I wonder if this is the best choice.
For those who spend their checks (vs saving them), it would help the economy if the money is spent on products made in the USA. However, I’m guessing many will be using them to pay down debt.
Barbara Swafford’s last blog post..Blogging - Year One - Lesson 3
April 17th, 2008 at 7:37 pm
a simple humble question…
(let me be clear…i am no tax enthusiast!)
did you plan your trip away so you could write it off? :-)))))
Harmony’s last blog post..The ABC’s of Golden Zen
April 26th, 2008 at 5:35 am
@ Vered, that was an interesting Forbes article. Good to know that I’m not alone in thinking that!
@ Barbara, unfortunately I’ve spoken to some people who are planning to use their rebate to increase their debt by buying foreign products mainly on credit!
@ Harmony, nope, no writeoff for me there! However, I’m sure people will try to cheat on their taxes that way by making up a fake business meeting, only to get caught and have to pay fines.