Another Economic Stimulus Package? Second Round of Checks Coming Up
While the dust is just settling after the first round of economic stimulus payments, we’re already hearing rumblings from Congress about a (possible) second round of checks. I first wrote about the possibility of a second stimulus payment in the context of a campaign speech delivered by Barack Obama.
It now appears that the idea is gaining steam, with Speaker of the House Nancy Pelosi saying “We will be proceeding with another stimulus package.” According to an AP Report, a new bill could include: additional tax rebates, heating and air conditioning subsidies for the poor, infrastructure projects, higher food stamp payments and aid to the states.
Pelosi went on to say that she “would hope that (tax rebates) would be part of any package.” Senate Majority Leader Harry Reid was less enthusiastic, saying:
“The first thing we need to look at before we look at tax rebates is, what can we do to stimulate the economy? And that’s infrastructure development. That’s bridges, highways, dams, and to put massive amounts of money into an infrastructure for renewable energy.”
For their part, Republicans are proceeding with caution. For example, House GOP whip Roy Blunt said:
“To my Democratic colleagues who want this Congress take up a massive, taxpayer-funded ’stimulus’ package, I offer them this piece of simple advice: the best way to stimulate our economy would be to take meaningful steps to reduce the price at the pump.”
And President Bush argued:
“Let’s see how this stimulus package works and let us deal with the housing market with a good piece of housing legislation, and the energy issue with good energy legislation, and the trade issue with good trade legislation.”
Either way, it’s unlikely that we’ll see anything in the way of new legislation until September when Congress returns from their summer vacation.
Published on July 22nd, 2008 - 31 Comments
Filed under: Economy, Taxes
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Why don’t they simply cut taxes, instead of sending out these stimulus checks? Fewer letters for them to mail, less headache…
Comment by NCN — Jul 22nd 2008 @ 6:01 pmOh, yeah, that makes to much sense…
What was I thinking?
And, if you cut taxes, you only reward folks who actually earn money and contribute to the economy…
NCN
NCN -
A lot of people make tons of money without earning it. And there are a lot of people who work hard and earn little money.
Comment by Andy — Jul 22nd 2008 @ 6:30 pmAndy, excellent points! I agree with you.
Comment by Kim — Jul 22nd 2008 @ 7:47 pm@ Andy Umm… the tax cuts would help everyone keep more of what they make, including those you mentioned… and, how do you make tons of money without earning it? perhaps you meant that they HAVE lots of money, but they didn’t earn it?
Comment by NCN — Jul 22nd 2008 @ 8:21 pmwhy should we have to wait for the govt to dole out checks? it’s our money… silly really
I agree with NCN. I for one am sick of them spending my taxpayer money to give rebates to others. I am even more sick of total waste of money sending all the letters. How is spending 50-something million just to tell people “you may get a rebate” is helping the poor? I understand that for the government 50-something milllion is pocket change, but if so, maybe they should just give it to us. 50 million here, 50 milllion there, and all this wasted money adds up. Just like Starbucks on a much smaller scale. Not to mention how many trees they killed just to print these letters. Sure helps the environment.
Yes, and recent earnings from Google, eBay, Yahoo, American Express, etc., sure showed how much the previous rebates stimulated the economy. NOT.
NCN - you are right, what you say makes way too much sense.
Comment by kitty — Jul 22nd 2008 @ 8:55 pmThe only thing I could think of when reading that was, “Man, they used the word legislation way too much in that last quote…”
I completely forgot about the whole bit on tax rebates until I got to reading comments.
Comment by Blaine Moore — Jul 22nd 2008 @ 10:06 pmNCN - Consider the dynamic effects of tax cuts. When taxes are cut, do unskilled workers keep more of their money or less of their money? Remember, think dynamically, not statically. I’m not sure how much more tax cutting I can afford!
Comment by Andy — Jul 23rd 2008 @ 12:21 amI think sinking tons of money into alternative energy projects like Dams or Wind projects makes the most sense. It will give the United States as a whole an economic advantage in the long term. That’s much better than helping the average American take a summer vacation.
Comment by moneyconversationsguy — Jul 23rd 2008 @ 9:34 amI’m not a fan of a second round of economic stimulus checks, and wasn’t particularly happy with the first (and the wasteful notices that were mailed out twice letting us know the checks were coming). However, with an election right around the corner I wouldn’t be surprised to see another announcement pushed through the House.
Comment by Frugal Dad — Jul 23rd 2008 @ 9:59 amElection gimmick. So is the government going to borrow more to fund this round of payments?
Comment by gm — Jul 23rd 2008 @ 11:14 amNCN: First, inherit a bunch of cash. You could stop here. Or you could invest in tax-exempt securities. Waa-lah, lots of income, no tax paid.
You could also invest in taxable securities and more ordinary things and avoid that annoying 15.3% tax that teachers, janitors and the like have to pay.
Comment by spaces — Jul 23rd 2008 @ 7:01 pmI would rather have all the money go towards infrastructure than get a few hundred again. Here’s why- roads, bridges, dams, etc all seem to be in terrible repair and I have seen multiple reports where these types of structures have 30 year life expectations. Most were dealt with back with the CCC, then in the Eisenhower years- and have sat since. Getting the engineers, road crews, carpenters, etc needed for this huge project would move money all over the place- but the government seems so afraid of becoming “socialist” by having all these jobs generated. It seems to me a better thing than having to just plain give out the money with no real return on investment.
Comment by DivaJean — Jul 24th 2008 @ 11:09 amI love the descriptive word they used over and over… good legislation of course!
Specifics man I want specifics!
Comment by Danielle — Jul 24th 2008 @ 10:24 pmI feel if they will send another stimulus check, let them. School is right around the corner. Some people like me middle class don’t have enough money for uniforms and school supplies, and most important enough money for gas. LET IT HAPPEN CERTAIN PEOPLE NEED IT!!!!!!!!!!!!!!!!!!!!!!!!
Comment by Melissa — Jul 25th 2008 @ 2:50 pmEven if this does get passed I read it wouldn’t happen until up to spring of next year. There are both pros and cons to another stimulus check.
Comment by Zombie Money — Jul 26th 2008 @ 12:40 amOf all that is written, I love only what a person has written with his own blood.FriedrichWilhelmNietzscheFriedrich Wilhelm Nietzsche
Comment by Surveillance Bill — Jul 26th 2008 @ 2:27 amThere’s nothing wrong with getting more of my tax money refunded. However, the rapidly increasing national debt is troublesome.
It’s morally wrong to have an unbalanced budget. The generations before me have had the benefit of all that government spending, but yet are going to stick me with the debt and no benefit.
Let this be a lesson, do not vote for any politician that is in favor of increasing that national debt….or you could and then just stick it to the generation after you.
Comment by Mike Zoril — Jul 26th 2008 @ 12:02 pmIt is an illusion that youth is happy, an illusion of those who have lost it.W.SomersetMaughamW. Somerset Maugham
Comment by SPP — Jul 26th 2008 @ 1:37 pmDoes anyone else wonder why it is so critically important to explore outer space and be part of a space station and spend billions of dollars on equipment, fuel and materials, (that we are not able to reclaim and recycle by the way), to do so? How about exploring our oceans for renewable resources, drilling for oil right here or in Alaska, investing in solar energy, wind power, and water power, spending money to research and build cars that do not run on petrolium products.
I am not fond of the government having borrowed large sums of money and thinking about doing so again in hopes that we will buy a wide screen TV or other totally unnecessary item. I, and most people I talked to, paid bills accrued over the winter from EXCESSIVE oil and gas prices with mine.
I am also not in favor of the governmet borrowing more money, that we taxpayers have no say in but will be required to pay back for them, just so they “appear” to be concerned about us. Liars! They’ve got us right where they want us. Hampsters running on their wheel so they can do as they wish not as we need.
Comment by deb — Jul 30th 2008 @ 11:51 amI heard from another source, vamp the package up to a sensible level…$2500 for single taxpayers, $5000 for married couples, and $600 for each exemption. You want the economy to come back to life, give it a reason for a comeback. God Bless America!!!
Comment by Bruce — Aug 7th 2008 @ 9:34 pmThere are alot of people who work there asses off out here who need help . Putting alittle in there pocket by cutting payroll taxes will not help them . Give them a check that amounts to something so they can pay something off, so they will have alittle more money for other bills . The working class citizen is use to being in debt, thats been the way of life for us since time . But like idiots 6 years ago we bought stuff used are freakin cards and got ourselves in a hell of a mess thanks to our wonder leaders who led us down bankrupt hill . This is not our fault its theirs , so let them get us out they helped get us in it.
Comment by kel — Aug 10th 2008 @ 5:10 pmi think another Econmic Stimulus Rebate check is a great idea.the first one ready helped out a lot of people.includeing myself.I know the Mr.Barack Obama is going to make one of the best President we have had in many years. Go Obama / Concetta Lombardi
Comment by CONCETTA LOMBARDI — Aug 15th 2008 @ 2:10 pmI know that for a person like me that was a single mom with 2 kids and that works my butt off, it really helped. I do not live off the welfare system and I work to provide for my family, but at 10 dollars an hour,and the way EVERYTHING is going up in price..it isnt nearly enough. And find another job you say?…Good luck there, jobs are laying off around here not hiring. So this last check did help me to catch up on bills and to have a bit to get my kids clothes and do something for them that I can not do on a normal basis. To all of you that make a descent earning and live in your fancy houses and drive your hummers like gas is just pennies a gallon and shop at high class stores, I guess you wouldn’t understand where us that barely make enough to pay the bills are comming from. ANd when your nose is that high in the air, i guess you cant see what is going on down here with us “little” people!
Comment by amanda — Aug 18th 2008 @ 8:09 pmI for one do believe that another stimulus check is nothing but wonderful for my family. We are a single income family, raising a seven year old child. Although my husband of ten years makes a decent living, we still struggle. Prices on everything is outrageous. For the first time ever, I am worried about this winter, and especially Christmas for my child. We have started stockpiling dry goods and canned food, as well as stocking two chest freezers with meats. I am positive we are not the only Americans doing this. My whole side of my family is because all is uncertain. Whether or not another check payment is politacally driven, or not, I say give the American people more help because we need it. The last check was good for us, we paid some bills and went on a small vacation. Plus, I think increasing the amounts that we would recieve would be great. We plan on using it wisely.
Comment by April Parker — Aug 20th 2008 @ 10:56 amI think the idea of another stimulus check is a GREAT idea!! I am single working 30 hours a week, can’t find another job, cuz there isn’t any. I used the $600 i got in may to catch up on my electric bill and gas bill, and the rest went into the economy!! Since then i’ve seen the price of gas lower and think that the economy needs another jolt like this, but better this time!! Like 2500 for single and 5000 for the married!! Let’s see what that will do….I bet we will see lots of decreases in prices!!
Comment by Justin — Sep 5th 2008 @ 6:53 pmI think this article was interresting however I think that if congress wanted to stimulate the economy they should have sent the round of checks in time for the Christmas Holidays. I believe it would have benefited more so families would not have to debate between buying gifts or buying gas. This is just my thought I know that what I think does not matter.
Comment by Vannessa — Sep 8th 2008 @ 11:32 amI would like to say that the goverment needs to quit helping the rich get richer and the poor get poorer. I think if they are going to give a second stimulas check, veterans and people on social security deserve it to…..
Comment by Rose — Sep 11th 2008 @ 8:03 pmi hope that we will get another stimulus check. i have
Comment by celia crawford — Sep 28th 2008 @ 5:16 pmworked all my life and now that i am unable to work
due to health problems, i would welcome the help.
the poor deserve to be helped more than anyone else.
the elderly need help and they sure don’t get enough
to live on. so why not give a second round to the
needy. i went to walmart oneday and a elderly woman
in her 80’s with tears in her eyes told me that she was
gonna stack up on the necessaties that she needed
and couldn’t always buy.
for once let stop thinking about yourselves and think
on the poor.
Everbody knows the stimulus check was done for political purposes only. That’s why the amount was only large enough to pay on all our bills not pay them off. The government has the power and the means to actually get each and every one of Americans out of debt and on our feet. Hey I would accept just send the money to my mortgage company pay off our home for us, or send it to the credit companies and relinquish Americans credit card debt. (YEAH RIGHT) Helping the economy is about bringing us out and up. Would you begin saving a starving puppy by giving them crumbs?
Comment by Staci — Oct 4th 2008 @ 12:26 pmStaci,
What a stupid comment. The government doesn’t have the power to get Americans out of debt. They don’t even have the power to get themselves out of debt. The national debt is swelling and there’s no plan in sight on how to pay it off.
Who do you think is going to be the person to lend the federal government some money in order to get you out of debt? Who would be stupid enough to do that? Nobody.
Comment by Mike Zoril — Oct 4th 2008 @ 1:03 pmStaci: Seriously? Even if the government had the means, why should they pay off your mortgage and/or credit card debt? You (and I and everyone else) willingly borrowed that money, and should rightfully pay it back.