How Much will $600 or $1200 Mean To You

I read with interest the breaking news today that to stimulate the economy, there is a proposal to rebate $600 to every single taxpayer and $1200 to every married taxpayer filing a joint return. There is talk also of $300 for each dependent child in the household. According to the news report, these checks could be in your mailbox by June of this year. People who did not pay federal income taxes but who had earned income of more than $3,000 would get checks of $300 per individual or $600 per couple. Those who earn up to $75,000 individually or up to $150,000 as a couple will be eligible for the payments according to the report.

So, as a single taxpayer, I would receive a check for $600 and thought about what I would do with this "windfall". Unfortunately, it's not going to pay for a new car, or my dream vacation, so I would probably just deposit the amount into my checking account and it would disappear into the world of bill paying and normal living expenses as do most checks I deposit here. I might just deposit this amount into my savings, after all I hadn't planned on having it and I probably don't make as many deposits into this account as I should.

But what about the rest of my fellow taxpayers who receive this payment? I am sure that to many, this will come as a blessing and pay for something they sorely need and for that I am all in favor.

I do wonder how this will affect the budget deficit and the amount of taxes I will be paying down the road to make up for any shortfalls - this was not mentioned in any of the articles I have so far read. That will be interesting. For now, however, we'll see how this plays out, how the "short term fix" as well as any long term fixes that are yet to come, will be reflected in the economy in general and the hard-hit housing market in specific.

So, my loyal readers, I'd love to hear just how you would spend this unexpected "gift" from Uncle Sam - or if you think it is a good idea or not, too much, too little - whatever, email me!

Remember BE INFORMED and CHECK BACK HERE OFTEN