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Question by GoinNuckingFuts: Who do you think is paying for U.S. tax rebate checks?
Politician’s standard answer is “we’re just giving the taxpayers money back to the taxpayers to jolt the economy”. But given we’re in a deficit economy, aren’t countries like China and Saudi Arabia the ones actually financing these checks? Isn’t the government gonna have to issue treasury debt (bought in large part by foreign governments) in order to get this money out?
If the headline read “U.S. Government begs Saudi Arabia & China to mail $ 600 to every taxpayer in the US for ‘feel-good’ spending; US grandchildren to pay it back with interest”, we would have a better idea of how our leaders are managing our country’s wealth.
Best answer:
Answer by Miso Honey
Our grandchildren
What do you think? Answer below!
The largest “tresury debt” is owed to SS that has been borrowed. The Rabte is a joke they should just lower the tax rates some more
The troops and veterans are paying for the Republican rebates. The troops still don`t have the body and Humvee armor they need and the veterans administration still are underfunded and the troops families still have not been reimbursed for the body armor they sent their kids.
Your theory is probably correct, or its our money sitting in the treasury, making this redistribution a giant socialist program (way to go Bush!).
What I don’t understand is, if we’re supposed to spend this money to stimulate the economy, then stimulating the economy means giving retailers money. More than half of respondents polled say they plan to pay off bills, or save the money (now that’s a first! The average American saves -$ 0.05 for every dollar they earn!). So it seems this will be a whopping failure, why not just give the money to the retailers if this solves the problem? Perhaps they are giving themselves leeway to blame this plan’s failure on us for not spending it right.
It’s just paper, the fed. reserve can print out as much as they want, after all there is no gold standard, so it’s just paper, and worth a little less every day.
Oh no, WE are paying for it. For everything that we get taxed on, plus our income gets taxed we have paid mre than enough money into the system to get these check back to stimulate the economy……THAT’S WHY WE HAVE TO CLAIM THEM ON OUR 2008 RETURN!!!! So we get screwed next year.