Are We Getting Another Economic Stimulus Check - Roundup of Opinions

People need to know - “will I get another check?”

If the amount of search traffic coming to this blog is any indication, people NEED to know if there is going to be another stimulus check coming their way in the coming months. My guess is probably not. In the next year? Maybe.

photo credit: JOE M500

Indications are from the Obama campaign that they would like to give us another stimulus check which is paid for by “windfall profits” from big oil. Other infrastructure improvements (including rebuilding roads, repairing bridges, and repairing schools) included in the plan don’t have a clear funding source, but somewhere taxes will probably have to be raised. The question is - on who? To download a copy of his “Emergency Economic Plan”, click the link below for the .pdf.

Obama’s Emergency Economic Plan (48.14 KB)

The McCain campaign on the other hand hasn’t committed to any type of a stimulus check, saying that it won’t solve the problems we’re facing:

“The problems facing this economy are pretty easy to identify, energy prices are high and rising. Writing checks doesn’t do anything to solve that problem.”

So don’t expect to see another check if McCain is elected. Tax cuts? Maybe.

5.2 Million Checks From First Rebate Still Not Claimed

The IRS announced last week that 5.2 Million Americans haven’t claimed their first stimulus check. These are generally people who have not yet filed their 2007 tax return, which is necessary to file before receiving a check. If you are one of those people, you have until October 15, 2008 to file the Form 1040A. Get your form at www.IRS.gov. You don’t want to miss out now do you? So go fill out your 1040A!

Roundup of Stimulus Check Links

Here is a roundup of the opinions and news I’ve been reading around the web in regards to another stimulus check:

What is your opinion on a second stimulus check? Will it help or hurt the economy? Would you rather see tax cuts or a stimulus check?

August 21, 2008 · Filed Under Commentary, Links, Post Roundup, Taxes, rebate, refund, tips

17 Comments

A second stimulus check: Is it on the way, and is it even a good idea?

The second stimulus package popular among many in Washington

The idea of a second round of economic stimulus checks being sent out sometime this fall or next spring has been gaining steam in the hallowed halls of Congress. It has been mentioned by a number of Democrats including House speaker Nancy Pelosi, as well as other prominent politicians from both sides of the aisle. Pelosi talked about the first rebate, and the possibility of a second just last week:

“The rebates had “a positive effect,” Pelosi added, “except they have been offset, as has been said by our experts, by the rising costs in other necessities for the American people. So while they may have saved the second quarter from a technical definition of a recession, the fact is that we are into a third quarter and we need to have another stimulus package.“

photo credit: Will Palmer

For the politicians a second round of stimulus payments are a no brainer. In an election year like this the pols are looking for just about any way they can to sway the voters. Giving their constituents money seems to be a great way to do that.

Even if a second round of checks is passed, it sounds like it probably won’t happen until fall at the earliest:

Harry Reid of Nevada, said it would be “really hard” to get a package put together before the August recess, indicating that the issue was unlikely to gain momentum before the fall.

Today Barack Obama continued his pledge for a second round of stimulus payments if he is elected:

Obama said the economy needs both short- and long-term fixes, including another round of “stimulus” measures from Congress to revive the economy and a longer-term focus on renewable energy to curb high gas prices and on universal health care to trim costs. He said he would move “rapidly and vigorously” to respond.

So even if we get a second check, it probably isn’t going to happen for a while. So don’t count on that extra income in your budget! Check out my article for some ways to create your own “stimulus income“.

First check - just not enough? Will a second stimulus be more effective?

The first check doesn’t seem to have had enough of an effect, and any positive effects that they did have seem to have been offset by rising gas prices, food prices and prices of other essentials.

From what I’ve read around the blogosphere it also seems that a lot of people didn’t spend their first rebates. A creditcards.com poll conducted March 7-9 by GfK Roper Public Affairs and Media found:

half of Americans don’t have spending in mind, with 26 percent saying they’ll pay off some debt, and 24 percent planning to save it.

So a quarter said that they planned to save their stimulus payment, and another quarter said they would use it to pay off debt. Not exactly the outcome that the government had hoped for.

Would people be more likely to spend a second round of stimulus checks? My guess is that more people probably would spend it. The fact that they’ve already used one payment to pay off debt or save means that a lot of people will feel like they “deserve” to spend their second check. I think you would see much higher numbers of people actually spending their stimulus checks the second time around.

Is a second round of checks a good idea?

Is it a good idea to continue doling out checks until the economy picks back up? Or would it be better to just let the market correct itself, even if it means a bit of pain in the short term? I’d love to hear your feedback on the topic.

Personally I’m of the opinion that the stimulus checks are more smoke and mirrors than actual solid economic policy. I can’t see these checks having an appreciable effect. I’d rather see a cut in taxes, help for those that are creating jobs, and progress on new drilling for oil to help reduce gas prices. An increased focus on other sources of renewable energy would be a good step as well.

What would you do with a second economic stimulus check?

If a second stimulus package does materialize this fall, what will you do with your check? Will you:

Spend it (like they want you to)?
Save it
Use it to pay down debt?
Donate the money?

Let us know what action you’ll take if you get a second check - in the comments below!

July 30, 2008 · Filed Under Commentary, Taxes, refund

32 Comments

Another stimulus check? Maybe, but why not just create your own?

photo credit: NickStarr

A second stimulus check?

Over the past few days we’ve been hearing renewed calls for a second stimulus check. Just yesterday House Speaker Nancy Pelosi said:

We will be proceeding with another stimulus package, and we once again hope we will work in a bipartisan way

It seems that Democrats believe the first tax rebate hasn’t done enough for the economy, so they’re considering sending us another one. President Bush is taking on more of a wait and see approach. He contends that we haven’t yet seen the full effects of the first rebate, and we need to see how that pans out first. Federal Reserve Chairman Ben S. Bernanke, testified to the Senate Banking Committee yesterday about this as well. He said:

On a second stimulus package, my own sense is that we are still trying to assess the effects of the first round, It appears that it does seem to be helping, but it might be yet a bit more time before we fully understand the extent to which additional stimulus may or may not be needed.

I’m not against getting another check, after all that first one came in mighty handy to pay off some of my wife’s medical bills. At the same time I don’t think I’ll be getting my hopes up sitting around waiting for another check in the mail. It is an election year after all, and promises of tax cuts, rebates and stimulus checks are a dime a dozen.

So instead of waiting around for my check, and in the spirit of being proactive, here are a few ways to create your own stimulus check!

10 ways to create your own stimulus check

Get a better insurance rate: Shop around to find a better rate on your health insurance, homeowner’s and auto insurance. Just by switching companies you can end up saving a few hundred dollars a year, to thousands. I know because I switched my insurance providers earlier this year and ended up saving over $1000 a year!
Sell things online: Find things around the house that you no longer need or use, and sell them online at websites like ebay.com, half.com, craigslist.com and others. I’ve done this on occasion and end up making hundreds of dollars a year. People will buy just about anything on ebay!
Get a part time job: Find a job where you can work on the weekends, or other odd hours. Get a paper route, work at UPS, or elsewhere. Even if you don’t stick to it for very long, it can be a good way to make a bit of cash.
Watch how you drive, carpool or walk: Find ways to cut back on driving, like riding in a carpool to work. I do this, and it saves me upwards of $100 a month! Also change the way you drive to cut back on your gas consumption. If you live close to the places you need to go, try walking or riding a bike!
Cut back on your food spending: In the past couple of months my wife and I have cut back on the amount we spend on dining out, and groceries. Just by doing simple things like packing our own lunches, not eating out more than 1-2 times per week, and using coupons, you can save a ton!
Cut out unnecessary spending: Cut the cable TV, the huge cell phone bill and the super fast internet! There are always cheaper alternatives to a lot of the services out there. Either cut back on what you’re paying, or cut the services altogether. My wife and I have never paid for cable tv, and we don’t miss it!
Use a cash rewards credit card to pay your bills: This isn’t something I’d suggest if you’re undisciplined with money. If you are disciplined enough to do it, and pay the card off every month, I’d suggest getting one of the good cash rewards credit cards, and paying your bills with it. Many of the cards will also give you extra cash back for things such as gas and groceries. Compare some of the cash rewards cards here.
Start a blog (or other online income): Start a blog online and write about a topic that you’re passionate about, or one that you have inside knowledge about. Become an online authority, and place advertising on your site. If you do it right you can make a nice side income doing that. Other ideas for online income include filling out surveys, designing t-shirts for a cafepress.com store, or finding something you’re good at, and offering your services online.
Pay cash and ask for a discount: This one may seem obvious, but many people don’t do it. If you’re buying something, offer to pay cash, and see if they’ll give you a discount because you’re paying in cash up front. Often you can get a huge discount. If you don’t ask, you’ll never know if you could have had it for less!

Links:
Are we going to get another tax stimulus rebate check?
7 positive ways to use your economic stimulus rebate
How to give yourself a second stimulus check
Democrats Are Weighing More Tax Rebates, Pelosi Says
Pelosi Statement on Today’s Economic Forum

July 16, 2008 · Filed Under Taxes, money, rebate, refund, tips

21 Comments

Are we going to get another stimulus rebate check?

For those of you searching for news about a second economic stimulus check, thanks for stopping by. You can find more recent news about the possibility of a second check - and ways to create your own payout without relying on the government - at this link.

I was reading the news this morning when I came across this little news item talking about some of Barack Obama’s campaign promises he made yesterday:

Barack Obama spoke directly to pocketbook issues in this capital city Monday, hitting Republican John McCain hard as he outlined an economic plan that would include a second stimulus check, tax breaks for seniors and the middle class, and debt relief for students.

Now I’m not one to turn down a check if they’re going to be sending it my way anyway, but where exactly is this money coming from? Could it be that in addition to a second stimulus rebate check we’ll also be receiving higher taxes?

Another article in Time magazine talks further about Obama’s plans:

he and his advisers are reciting the details of his three big short-term priorities: a new $50 billion stimulus program, much of it routed into extending unemployment insurance beyond the current 26-week limit and helping struggling state governments; a more aggressive foreclosure-prevention effort, with $10 billion in funding; and a tax cut for Americans making less than $150,000 a year — to be financed with tax increases on those making more than $150,000 a year.

Personally I’d rather just see a cut in my taxes, and just keep some more of the money that I earn from the outset.

What’s your opinion of a second round of stimulus rebate checks?

LINKS:
Another stimulus check? Maybe, but why not create your own?
What Is Obama’s Economic Plan?
Obama’s plan: Tax breaks, another stimulus check

June 10, 2008 · Filed Under Commentary, Taxes, rebate, refund

5 Comments

Economic Stimulus Rebate Update: I got my money!

I logged into my online personal finance manager today at mint.com and found that I have finally received my $1200 enonomic stimulus rebate! If you haven’t received yours yet, click here to find out when you’ll be getting it.

I received it exactly on the day that the government said I would, but nonetheless I was getting impatient. Who wouldn’t when you have that much money coming your way?

So now that I have my money, I know exactly what we’ll be spending it on. Hospital bills!

tax rebate

For those of you who have been subscribed for a while, you know that my wife was hospitalized for 3 weeks after she suffered a complete blockage and clot in her left leg. If she hadn’t gone in to see the doctor that fateful day over a month ago, she probably would have died. Luckily they caught it and were able to stabilize the clots so that none of them broke off and moved to her lung, heart or brain.

We’re very thankful for all the thoughts and prayers everyone have been sending our way, and we know that they work!

So, if you don’t have hospital bills to pay like we do, what are some things you can do with your rebate? Click here for some suggestions.

To find out what some other people are posting in regards to the rebate, check out these great reads: