2008 Stimulus Payment Calculator

Below is a calculator from News Hour Business Desk on PBS to estimate the tax rebate one would receive under the 2008 economic stimulus plan.

It will be interesting to see if this plan will do anything to stimulate the economy and if it does work how long it will keep the economy stimulated. I would venture to guess that the money will either flow off-shore to the export economies (China) or go towards consumer or non-durable goods (how many more flat screen TVs do we need?). Very little of the stimulus money will end up in bank accounts, investment accounts or going towards the purchase of capital goods, all of which would help the economy in the long run.

Another point of the stimulus package that is not often discussed is that it will increase the size of the National Debt. These days the size of the National Debt doesn't seem to be as big of an issue with the electorate. They are probably more worried about their own debt issues. Speaking of an election year, the stimulus plan seems more likely to stimulate re-election campaigns than the economy.

The current problem with the economy seems to be firmly rooted in the credit market and the effects of extending credit without regard to risk. Until the credit market becomes more comfortable with lending money and the risks involved, the economy will stay in the holding pattern it has been in for the past 6 months. But hey, I will take my money back from the IRS.

What will you do with your stimulus payment?