[Flafurs] Economic Stimulus checks and what the government may not want you to know about them.

[Harik]

Wow there's so much misinformation here it isn't even funny.

Let's try explaining this:

This year, you owe $2000 in federal taxes.
If the bill isn't signed, next year you owe $2000 in federal taxes.

If the bill _IS_ signed, next year you owe $1400 in federal taxes - but
they give you the $600 difference RIGHT NOW.   You get $600 now, and pay
the SAME $2000 next year.  Not $2000 + $600.

If you don't accept the check - you pay $1400 next year.  That's SIX
HUNDRED DOLLARS LESS then this year.

I know math is hard, but look at the 1040 from the last time and run the
numbers yourself.   No matter how you look at it, it's a tax CUT.  It's
not that you owe the government more - they give you your own money back
  NOW instead of waiting a year.

Will it work?  Who knows.  I don't think $600 per taxpayer will make up
for the loss of the home equity ATM that was driving our economy.  What
probably WILL help is the capital expense writeoffs - big business
buying big things is still somewhat an American market, as opposed to
people buying chinese products from walmart.   The budget deficit isn't
as big a deal right now - of course it will grow in a recession -
government spending isn't very flexible.  When the economy expands you
can bump taxes back up and use that to pay it down some - or just use
the new higher tax revenue from a larger economy.

TL;DR:  They're cutting taxes.  You can get it now or next April.