THE economic stimulus thread

[Zkribbler]

Originally posted by Drogue

Someone who inherited $10m would be making at least $500k in interest. If you count entire after-tax income, you probably get a good proxy of how rich someone is.

Except he would have it invested, and dividends and capital gains are taxed at a lower rate than salaries or interest.

[pchang]

That would not

affect the calculus of whether or not the person was rich.

[Arrian]

Well I made like a good little consumer yesterday and bought a new computer. Huzzah.

In other news, the Fed cut rates again, to 3%.

-Arrian

[Kidlicious]

Well, don't start spending your rebate yet. It isn't one at all. It's a front on your 2008 return. In other words you have to pay it back. Now that's ****ing stupid. This will do nothing for the economy.

On top of that I have to explain this to people.

America, don't blow this rebate

To produce this cash, Congress created a one-time tax credit to reduce taxable income for most taxpayers this year.


Normally, you wouldn’t see that cash until the spring of 2009, when you filed your 2008 return. But Congress wants to speed that money to you now, so checks will start going out in May.

[Whoha]

Way to stick it to the next President Mr Bush.

[snoopy369]

I was wondering about that...

Does a credit modify your AGI - ie, does it cause you to fall into a lower tax bracket if you are on the cusp? Or is it post-AGI?

[Kidlicious]

Originally posted by snoopy369
I was wondering about that...

Does a credit modify your AGI - ie, does it cause you to fall into a lower tax bracket if you are on the cusp? Or is it post-AGI?

A credit is suppose to reduce your tax directly. So I'm thinking that they will put it on a line somewhere after the tax next year.

[Kidlicious]

I don't get how they reduce taxable income this year though.

[snoopy369]

Yeah, that didn't compute for me. That article got something wrong, just a question of what...

[Kidlicious]

I think I was wrong actually. They will probably put it in "other taxes" next year by advanced earned income credit.

[snoopy369]

e.g. increase your tax burden by $600 per capita?

[Kidlicious]

Originally posted by snoopy369
e.g. increase your tax burden by $600 per capita?

That would be the simple way, but then it says people without any tax burden wouldn't have to pay it. So I'm confused right now.

Maybe there will be a negative credit.