As you may have read elsewhere, the President and Congress/Senate have finalized the Economic Stimulus Package for us hard-working Americans.

This package aims to put more money into the hands of Americans in hopes of having those people go out and spend like crazy. Which in turn, will stimulate the economy?!??

The Stimulus Package goes like this;

The Economic Stimulus Package

The Economic Stimulus Package is a ~$160 Billion dollar Early Tax Rebate to American families. It is based on your 2007 Adjusted Gross Income, as reported on your tax return and will begin to be disbursed in May 2008. It breaks down to;

• $600 per person (making < $75k/year AGI) or $1200 per family (making < $150l/year)
• Each Child adds an additional $300/family.
• Senior Citizens and Disabled Americans making at least $3000/year qualify as well.

The amount is gradually phased out for those making more than the maximums at the rate of 5% of any overage. (i.e. Joe Sixpack makes $165k/year, he would have his rebate reduced by $750)

$165,000 – $150,000 = $15,000

$15,000 * 5% = $750

Fool Me Once, Shame on Me,..

Now, I’ve seen other ’stimulus’ packages in the past, and I don’t remember a lot coming from any of them. There was Bush Sr.’s 1993 Tax Rebate (went to bills), and Bush Jr.’s 2001 Tax Rebate (also went to bills), and I can’t find hardly an article anywhere that shows the positive benefits of these injections of money into our society, long-term. As for the short-term benefits, it depends GREATLY who you talk to as to the impact they made.

Admittedly, it was nice to have a little scratch to pay more bills with, but it didn’t make a huge difference in my life.

Let’s break this down into useable figures.

So why do this?? I believe it’s a gut-reaction to the problems with the recent Stock Market rollercoaster, caused by many of the Subprime issues still percolating. In the space of a few weeks, we got BOTH a significant Federal Prime Interest Rate decrease (two actually) AND a stimulus package from the President. By the time that it actually ends up in the hands of the people it’s supposed to help, I’m betting that most of the reasons for the package will no longer be valid.

Fool me,.. You Can’t Get Fooled Again

I think this is another of those feel-good gestures to gain popularity for a President and cabinet that has been sorely lacking such in the last couple of years. A less-than-stellar economy for the last 7 years hasn’t helped to endear our leaders in congress to the common folk. Maybe this’ll do it?!??

To make the best of this though, consider how to get the most bang-for-the-buck out of your return.

What would change your lifestyle MOST (long-term and immediate) with how you use your stimulus check??

Some long-term ideas;

• Pay off a bill (or two)
• Start a college fund (or add to an existing one)
• Contribute to a retirement fund
• Invest the money

Some short-term ideas;

• Use it for put-off medical (Lasik surgery comes to mind)
• Make needed household repairs/improvements (increases the value of your home)
• Donate some to a church or favorite charity

Whatever you do with your stimulus check, try to remember that it’s supposed to be something that will IMPROVE your life.

Do you have ideas on what to spend the upcoming Stimulus Checks on?? We’d love to hear about them.