Following up on my post from earlier in the week, I’m curious to know who you think should get the tax rebates (assuming that they’re really happening, which is a pretty good assumption). So, today’s Fix the Tax Code Friday question is:
Should every taxpayer who pays income tax be entitled to the rebate, or should the rebate extend to people who pay Social Security (payroll) tax but not income tax?
Technorati Tags:
1040, economy, income tax, tax, tax rebate
Similar Posts:
- None Found
{ 8 comments… read them below or add one }
I don’t have a problem with it being extended to people who don’t pay income tax (as long as they pay social security) but I don’t think there should be an income maximum on the “rebate”. It’s a slap in the face to those of us who pay the most taxes in the nation.
I say only income tax – as currently structured, SS is a separate tax structure, now matter how much congress confuses the two. They’re right that it’s regressive (and a ponzi scheme that will ultimately screw all of us younger then the boomers).
I’d also rather see them adjust withholdings for the remainder of the year instead of wasting the time and money on checks.
To determine who should get the rebates, I think that we need to consider the purpose of the tax rebates. If the rebates are part of a package that is intended to stimulate the economy…the rebates should be sent to people that will spend the money in the economy (regardless of whether they have paid tax or not).
Conversely, if the rebates are intended to be an additional refund of income taxes paid, then they should only be sent to those that have paid income tax. (Same goes for FICA).
In this analysis we should consider why it is being called “an economic stimulus package.”
My question is….who pays for the rebates if it does go through? There’s no free lunch, much as some people think there is. Someone has to pay. Will our taxes go up to do it? Why have a handout at all? Of course, it’s Presidential Election Year. Buy the votes!!
Just as I am not entitled to a rebate on a car I did not buy, no one should get a rebate on taxes they did not pay.
No one should get a tax rebate like this.
Instead the Government needs to simplify the tax code; lower spending, and permenatly reduce taxes.
Mike Sylvester, CPA
I’m with Mike. CPA. I don’t like this economic stimulus rebate idea. I’m telling my tax clients to save their checks or pay down debt. Neither will stimulate the economy like spending. Our Uncle Sam is teaching us the wrong behaviors!
Carol, CPA
Carol, I agree. It’s disturbing that the cry is spend, spend, spend. That’s part of why we’re in this pickle to begin with.