What plans do you have for your "stimulus"rebate checks?

This past Thursday Congress approved a $168 billion dollar stimulus package as outlined by New York Times writer David M. Herszenhorn.

“The plan will provide tax rebates of up to $600 for individuals and up to $1,200 for couples filing jointly, with an additional payment for families of $300 a child, and a minimum payment of $300 for individuals who pay less than that in income taxes.

Payments will be reduced for individuals with adjusted gross incomes above $75,000 and couples with incomes above $150,000, with the wealthiest taxpayers receiving nothing. The Treasury Department said checks would be distributed beginning in early May, after the crush of the tax filing season.

The rebates and the business incentives, including a doubling to $250,000 from $125,000 in the amount of expenses businesses can immediately write off, are intended to jolt the slowing economy with new spending. “

On Meet the Press today Rev. Jesse Jackson told Tim Russert that his recommendation for jump starting our economy would be to follow FDR and create jobs by investing in our aging infrastructure such as bridges that are falling down. He added that sending taxpayers the above referenced money would be used to purchase goods made in China which would result in that rebate check ending up in China rather than going into our local economy.

Personal note. While I agree that there is a need to address our aging infrastructure for which money should have been set aside for deferred maintenance, we no longer have major rolling mills in this country. The days of Carnegie and U.S. Steel are found in history books. Many years ago my son in law worked in the construction of the San Jose, CA Convention Center. Believe it or not, the major steel structure for that project was shipped to CA by barge from South Korea. My point being that too many of our manufacturing jobs have been outsourced and sadly will not be returning.

While Jesse Jackson’s guess is as good as anyone else’s the imported goods still arrive at our docks, are unloaded, placed on trucks, sent to warehouses and distributed to local stores which hire workers to put the merchandise on the empty shelves. Therefore, many rebate recipients will take advantage of the lower cost goods creating a positive outcome. Every one of the people involved in the chain as described above eat, fill-up at gas stations, and eventually pay taxes. Just some rambling thoughts on this Sunday afternoon.

Juice drinkers.

What plans do you have for your rebate?

About Larry Gilbert