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Another Economic Stimulus Package? Second Round of Checks Coming Up

Written by Nickel - 63 Comments

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 - 63 Comments
Filed under: Economy, Taxes

About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

63 Responses to “Another Economic Stimulus Package? Second Round of Checks Coming Up”

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1
NCN Says:
July 22nd, 2008 at 6:01 pm
Why don’t they simply cut taxes, instead of sending out these stimulus checks? Fewer letters for them to mail, less headache…
Oh, 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
2
Andy Says:
July 22nd, 2008 at 6:30 pm
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.
3
Kim Says:
July 22nd, 2008 at 7:47 pm
Andy, excellent points! I agree with you.
4
NCN Says:
July 22nd, 2008 at 8:21 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?
why should we have to wait for the govt to dole out checks? it’s our money… silly really
5
kitty Says:
July 22nd, 2008 at 8:55 pm
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.
6
Blaine Moore Says:
July 22nd, 2008 at 10:06 pm
The 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.
7
Andy Says:
July 23rd, 2008 at 12:21 am
NCN – 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!
8
moneyconversationsguy Says:
July 23rd, 2008 at 9:34 am
I 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.
9
Frugal Dad Says:
July 23rd, 2008 at 9:59 am
I’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.
10
gm Says:
July 23rd, 2008 at 11:14 am
Election gimmick. So is the government going to borrow more to fund this round of payments?
11
spaces Says:
July 23rd, 2008 at 7:01 pm
NCN: 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.
12
DivaJean Says:
July 24th, 2008 at 11:09 am
I 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.
13
Danielle Says:
July 24th, 2008 at 10:24 pm
I love the descriptive word they used over and over… good legislation of course!

Specifics man I want specifics!
14
Melissa Says:
July 25th, 2008 at 2:50 pm
I 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!!!!!!!!!!!!!!!!!!!!!!!!
15
Zombie Money Says:
July 26th, 2008 at 12:40 am
Even 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.
16
Surveillance Bill Says:
July 26th, 2008 at 2:27 am
Of all that is written, I love only what a person has written with his own blood.FriedrichWilhelmNietzscheFriedrich Wilhelm Nietzsche
17
mz Says:
July 26th, 2008 at 12:02 pm
There’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.
18
SPP Says:
July 26th, 2008 at 1:37 pm
It is an illusion that youth is happy, an illusion of those who have lost it.W.SomersetMaughamW. Somerset Maugham
19
deb Says:
July 30th, 2008 at 11:51 am
Does 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.
20
Bruce Says:
August 7th, 2008 at 9:34 pm
I 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!!!
21
kel Says:
August 10th, 2008 at 5:10 pm
There 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.
22
CONCETTA LOMBARDI Says:
August 15th, 2008 at 2:10 pm
i 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
23
amanda Says:
August 18th, 2008 at 8:09 pm
I 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!
24
April Parker Says:
August 20th, 2008 at 10:56 am
I 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.
25
Justin Says:
September 5th, 2008 at 6:53 pm
I 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!!
26
Vannessa Says:
September 8th, 2008 at 11:32 am
I 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.
27
Rose Says:
September 11th, 2008 at 8:03 pm
I 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…..
28
celia crawford Says:
September 28th, 2008 at 5:16 pm
i hope that we will get another stimulus check. i have
worked 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.
29
Staci Says:
October 4th, 2008 at 12:26 pm
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?
30
mz Says:
October 4th, 2008 at 1:03 pm
Staci,

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.
31
nickel Says:
October 4th, 2008 at 9:39 pm
Staci: 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.
32
Jenny Says:
October 16th, 2008 at 3:07 pm
OK…In response and reflection on Kel and a few others… When credit cards were first made available to people, most of us were not taught how to use them. From companies who prowled on college campuses to tables set up in stores and TV ads and flyers…we have all had the wool pulled over our eyes! They were brought about by greedy money mongers and now everyone from upper to lower class is paying the price! How did they expect the economy would end up when companies offered people who would normally have to save up money for a year to buy a TV and give them easy money, thousands they can use TODAY. Its unbelievable that the credit card companies did not think about all the people that would have to evetually file bankruptcy in record numbers…so they don’t get their money anyways! THe government needs to make it mandatory before people get credit cards that they are educated (for free) on how they are meant to be used. For the avereage person, a 10,000 balance or even 1000 balance is absolutely ridiculous when they are expected to pay it off , usually in 1 month, before the next bill is due and finance charges are applied! You don’t do it “right” and your credit score suffers! Well what the?!?! And how ludacris is that we haevt o PAY for our Credit Score when every thing we do is based on it. That should be something provided to us at all times, FOR FREE. It practically decides our lives! The upper class and uber-wealthy are the only ones who can drop that much money onto a card at one time! There needs to be a movement created that starts in highschool with money management, banking and credit cards. Educated our children so they are not to make the same mistakes we did!
33
Pamela Moore Says:
October 23rd, 2008 at 11:29 am
All i have to say is leave everything in GODS HANDS man has control of nothing.
34
Marisol Rosado Says:
October 26th, 2008 at 2:52 pm
I work weekly to pay tax, ss, and health insurance. I look forward when is time to file tax, because at least I know I would have extra change for me and my kids. Not everyone live in high economic standards. If I receive a good income tax check is because I earned it. If you have to pay back tax is because your annual income can pay me and others a salary. I’m not one of the fortunate to make $50,000 a year. So, yes it would be very nice if the Democrats work together to assist us who are in need depending on weekly checks to be responsible and pay for weekly bills.
35
Brenda Says:
October 31st, 2008 at 4:18 pm
Even though I could really use another stimulus payment, being a single mom of 3, I would much rather have my job back. I was recently laid off from a decent paying job, a union job. I worked my butt off. But the company decided to send our work to Mexico and China. Not to mention some of the connectors we built are for the military! Anyways, maybe if we STOPPED fair trade and brought BACK our jobs to the United States, unemployment would go down conciderably AND people wouldn’t need stimulus payments, and neither would the economy. People would be able to pay their mortages, and bills. This last lay off they had has effected the community drastically. It is a big company, in a small town. Small businesses are closing down.
I am also tired of hearing about how “poor people” shouldn’t get the money because they’re lazy and need to get a job. Do you think we asked to have our jobs sent else where? PLEASE. And I can’t even find a job for as much as I make on unemployment. I would have to take a cut of pay by 50%. So… all you people out there who think you are secure in a job after working 20 to 30 years there, beware, you too could lose your job and need a little help.
36
James Martin Says:
November 2nd, 2008 at 2:51 pm
Parents who co-signed for Student Loans should be able to deduct the interest on the front page of the 1040 if they have taken over the payments for the defunct student who may be incarcerated or because such student has not or can not make the payment. Private Loans obtained through Sallee Mae have extremely high interest rates. Without a co-signer some Loans would not be granted. This puts parents in a position of denying their son or daughter an education even though co-signing is undesirable. Interest daduction would help regardless of the child’s age.
37
Gloria Stacker Says:
November 3rd, 2008 at 5:25 pm
I writing i’M i GOING TO GET MY SECOND STIMULAS CHECK YES OR NO?
38
Gloria Stacker Says:
November 3rd, 2008 at 5:27 pm
I’m I going to get my second stimulas check yes or no?
39
Sandra Says:
November 4th, 2008 at 9:30 am
We need another stimulous check!!! I am a mother of 3 and the first one was terrific, but not enoght with all the bills and me working full time and also having a disabled son and the bills going up up up [gas electric phone gas for car etc.. And also being told by public aid i make too much money to get help. I just wanted help until January, income tax time. I as a working mother my whole life and never asking for help from the goverment, like some people that dont need it, but they know how too work the system, I am insultedl!!!! The goverment needs to make something for a mother like me who dont want help all the time, but sometimes we need it. Make a program to reward single mothers who dont ask for help{even thogh they can get it but try too do it alone}.THANK YOU FOR READING THIS
40
Jeff Spalding Says:
November 6th, 2008 at 5:29 pm
I am all for it. The first check went to pay for my kids daycare, and clothes. We are a hard working 2 income family, but we barley make it month to month. We have good jobs and make enough to live with no extras. Mac and cheese dinners, hamburger helper, and $.99 totino’s pizza’s….thats all we can afford. We bought our house, and its a small 1200 sq. ft. house, and well within our means.

But 4 years ago I got seriously ill, and was in the ICU for over a month, out of work for 6 months, and had 4 surgurys removing about 12″ of my colon, then they had to replace a repair patch in my stomach which was recalled by the government, because It was causing internal bleeding, all at my expense. While out of work, I couldnt collect unemployment, because I was unable to work, was not eligible for social security, and didnt qualify for disability, because I was on my current job for less then a year, so I had no income. We have dual health insurance from both my job and my wife’s job. But since Bush got in office he changed the way dual insurance works, so the secondary insurance was worthless.

So now after all the surgury’s and hosipital bills, I had no choice but to file chapter 13 BK to save our house. We pay $2400 a month to the courts just on doctor bills, plus living expenses, daycare, gas, car payments, insurance, and food. So for a family of 4, making right at 100k a year, we only have about $1700 a month to live on. So thank you G.W., for changing the health insurance laws, and bankruptcy laws. You really hurt hard working family’s like mine. We have never had credit card debt, or excessive debt, never collected un-employment, welfare, or food stamps. But when needed, we were not eligable for anything and within a week of becoming homeless when we filed for chapter 13 protection (which we barley qualified, with the new laws). So all I can say please send the checks…. we desperitly need them. And its not for un-needed luxuries…its for the little things like keeping the power on, paying our car payment, and the water bill. Please help us… America’s forgotten, the lower and middle class.
41
niki Says:
November 9th, 2008 at 11:17 am
ok ncn when they send your stimulus check, just go ahead and return to sender.
42
niki Says:
November 9th, 2008 at 11:26 am
deb when they send yours just return to sender
43
niki Says:
November 9th, 2008 at 11:30 am
money conversation, that was an ignorant comment, most people used it to pay rent to keep our families from being homeless or foodless. if you used it for a vacation, then obviously you should not be recieving one. just return to sender.
44
niki Says:
November 9th, 2008 at 11:33 am
kitty, cut down a tree or feed and clothe families. give me a break! our concerns need to be people, cut down some more trees and build fire places in every home to keep people warm during cold season.
45
niki Says:
November 9th, 2008 at 11:37 am
if you have a problem with recieving another check just return to sender so that it can be given to someone that needs it. hopefully those that are complaining about the last stimulus check didnt spend it or they are stupid ass hypocrits!
46
mz Says:
November 9th, 2008 at 5:54 pm
Doesn’t anybody realize that the government isn’t just this abstract entity that can create wealth out of thin air (money yes, by printing more of it – but wealth NO). Another stimulus check would be nothing more than taking your own money away from you (in the form of taxes and inflation) and then handing it right back to you for political gain.

I would certainly love another stimulus check if it were free and clear money, but it isn’t. Somebody has to pay for it – and that somebody is “us.” They simply shouldn’t take it from me in the first place.

If this is a concept you cannot understand, you shouldn’t be voting.
47
eunicia Says:
November 14th, 2008 at 4:05 am
when will we be receiving our second stimulus checks in the mail. hopefully before christmas cuz some of us middle xlass people will like to be able to give our kids a decent christmas. with these gas prices its been seeming almost impossible.i hold 2 degreea one in computer information systems and ptt license and its so small where im from theres not many jobs but far away and with gas prices thats another big bill. ive worked hard all my life and i feel if i had the chance i would go back to school to make more money cuz now you need almost a bachelors degree to be able to make it today.
48
Cassandra Says:
November 17th, 2008 at 10:36 am
I think another check would be so great right about now because christmas is coming up and everybody dont have a job to buy their kids anything for christmas and it wouldnt hurt to take them food stamps up either.I hope the check come sooner cause i have some billls i need to get down.But i thank god we got somebody in the white house that is gone look out for us poor people THANK YOU GOD.
49
STEPHANIE LEWIS Says:
December 23rd, 2008 at 2:39 pm
Exactly when will Obama stimulous checks be sent out? Do you know how much he’ll give to the parents and how much for each kid?
50
rosetta Says:
January 2nd, 2009 at 10:17 pm
are we gething a second stimulouse checks soon

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