Comments on: Stupid Rebates in “Stimulus” Plan Discourage Work, Economic Activity

By: Bailouts Incite More Demands for Handouts | OpenMarket.org

Bailouts Incite More Demands for Handouts | OpenMarket.org — Wed, 20 Aug 2008 15:37:46 +0000

[...] package” passed by Congress as a precedent for demands for still more welfare (the “stimulus package” gave a rebate even to people who do little work, while denying a ta… in high-living-cost areas whose income exceeds an arbitrary level, effectively producing an [...]

By: Not Gonna Work Any More

Not Gonna Work Any More — Fri, 11 Apr 2008 14:14:35 +0000

I’m happy I read this thoughtful post. I’m going to stop working when my income reaches $150000. I really don’t want the other $24000 I anticipate earning so I can get that check for $600. But isn’t it a mute point since the rebate is based on my last years income. What a dirty trick, I’ve already harmed my huge rebate check. I’m no fool

By: mike brown

mike brown — Sat, 22 Mar 2008 05:42:38 +0000

This economic stimulus package is just a mere coverup
meant to draw your attention away from the economic downfall this country is heading for.The guidelines are
a crock of rubbish that encourages people of higher incomes to make less money. And only allows for people
to get credit 2 kids when there is alot of families with more than 4 people,but i guess the kids dont matter.
For people that dont recieve public assistance, that
work hard for their family with more than 2 children this
package is pretty much telling them the other children
dont matter. I am not rich. I dont even make 25,000 thousand a year and take care of 5 children without public assistance. I believe this plant to be biased
against “well to do” folks”. What should be good for
one should be good for others.

By: Deficit-Expanding “Stimulus” Package Grows | OpenMarket.org

Deficit-Expanding “Stimulus” Package Grows | OpenMarket.org — Tue, 29 Jan 2008 18:43:50 +0000

[...] the economy; and how the income limits on rebates in an earlier version of the stimulus plan would deny rebates to middle class people in high-living-cost areas, even as they would allow rebates to go to some rich people who receive unearned income and avoid [...]

By: Larding Up the Bloated “Stimulus” Plan With More Welfare | OpenMarket.org

Mon, 28 Jan 2008 16:04:33 +0000

[...] “stimulus” plan will give greatly expanded lending authority to Fannie Mae, the government-backed mortgage giant that engaged in Enron-style accounting fraud and helped [...]

By: Gerry Shuller

Gerry Shuller — Sat, 26 Jan 2008 01:13:32 +0000

Stupid (Congress) is as stupid (Congress) does.

By: Bipartisanship: A Marriage of Evil and Stupidity | OpenMarket.org

Bipartisanship: A Marriage of Evil and Stupidity | OpenMarket.org — Fri, 25 Jan 2008 21:16:23 +0000

[...] criticized the plan earlier, for giving “rebates” to people who do little work and pay no taxes (including a few rich people who benefit from major loopholes in the tax code), while denying [...]

By: Marwan Nusair

Marwan Nusair — Fri, 25 Jan 2008 18:52:48 +0000

Apart from incentives and disincentives, isn’t this a bit like pumping water from one part of the ocean and dumping it in another, in an attempt to raise the water level? The rebates presumeably come from the same economy to which they will now go. I assume the main impact is psychological, which is probably as crucial as any other (real) factor.

By: Michelle Malkin » Stimulicious stupidity

Michelle Malkin » Stimulicious stupidity — Fri, 25 Jan 2008 18:27:03 +0000

[...] Hans Bader continues ripping Washington’s stimulicious stupidity. He explains how the vaunted tax rebates discourage work and economic activity: Under the “stimulus” plan proposed by House leaders and the White House, you get a “rebate” — even if you work so little that you pay no taxes — but not if you work so much that your income exceeds a certain level. That’s a disincentive to work. Yet they have the audacity to call it an economic “stimulus”! (Rebates did not revive the economy in past recessions.) It’s just another form of welfare that will drive up the deficit. [...]

By: Hans Bader

Hans Bader — Fri, 25 Jan 2008 17:25:32 +0000

Note that the rebates will only discourage work (as opposed to punishing past work) if they are sent out in 2009, not just in 2008.

If they are just mailed out this year (2008), based on income earned in the preceding year (2007), it won’t have much of an effect on work, because people can’t change how much they worked in the past, or how much they earned in the past.

There’s no guarantee that any recession will last into 2009, or that refunds will be sent out in 2009 as well, and I should have acknowledged that in my post.

The uncertainty about whether the refunds will be renewed reduces the disincentive effect.