ObamaMania: how much is 1000$ exactly?

[KrazyHorse]

I wonder whether that is more true at the lower wage levels than at the mid to higher , or the other way around. For example, a retail store is going to pay say $6.50 an hour no matter what (affected by minimum wage, basically, in this state) but it will limit hours based on what it can afford; in a good climate it might spend as many hours as it can reasonably use (and thus FICA isn't affecting employees significantly), but in a bad climate it will reduce hours drastically, based on the cost to the company being higher than the return investment, meaning FICA is being passed to the employee basically in the form of reduced hours.

The avergae retail employees' total compensation is nowhere near at minimum wage. Only very new hires will be paid minimum wage. I also don't have any idea what the **** you mean by saying "thus FICA isn't affecting employees significantly".

Or the other way around, for all I know (but, from my retail background, I believe it is more likely the former - in a good climate they do not focus on hours significantly).

???

[Naked Gents Rut]

What's your verdict on the stimulus package, KH? I have little to no hope that it will do anything besides increase my taxes in the future.

[KrazyHorse]

a) It is good from a deflationary perspective
b) Since the US is nearing deflation such a program is money-financed, not real debt-financed. In this sense it is a bit of a free lunch.
c) I have my doubts that it will do anything at all in terms of breaking a recessionary spiral, as I have yet to see evidence of similar programs working. Even vigorous proponents of it are claiming that the fiscal multiplier is near 1
d) I might not have to pay for it at all, so I'm all in favour of it.

[Naked Gents Rut]

d) I might not have to pay for it at all, so I'm all in favour of it.

I hate you.

[KrazyHorse]

Tax regime arbitrage. Ha ha.

[KrazyHorse]

I can't wait to file my 2008 taxes. My wife and I both became US residents for tax purposes on Jan. 1 2008, so we still haven't gotten our 1200$ stimulus rebate (but will upon filing).

:stiffiesmilie:

[KrazyHorse]

I haven't seen our W2s yet, but at a guess we're getting a total of ~4000$ back.

[Naked Gents Rut]

I wonder how much of this tax cut is going to be dumped directly in bank deposits. Should be interesting to see how many Ricardian actors there are out there.

[KrazyHorse]

There's no reason for me to be Ricardian (again, tax arbitrage haha) but I am carrying a credit card balance right now and will be happy to pay it off with my tax refund (no risk return of 11% per annum) after buying a Wii and an Ideapad S10

[Naked Gents Rut]

I have every reason to be Ricardian, but no income with which to save (or buy a Wii). ****.

[KrazyHorse]

Intertemporally substitute income. Drop out of school.

[Naked Gents Rut]

Drop out of school.

Very tempting, but I only have one semester left. Might as well stick it out.