CNN reported that 116 million tax payers will received rebates as early as June. It’s $600 per person or $1200 per couple.
So the question is, will you be spending your money on bicycle related products or are you going to pay off some debt, what about just stashing it into a savings account?
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pay off debt so I can use the credit to finance a new mountain bike. that was the plan even before the “rebate” was announced.
I’ve been contemplating a replacement for my errand bike. The Gary Fisher Simple City is coming out soon, but I’m not sure about it just yet. Hate to pre-order one without seeing it.
I think I might wait at the nearest gas station and help some poor fellow with an H2 fill up half of his gas tank.
Or tour the Washington Coast.
Paying off some bicycle debt.
What can I say? 0% interest, no payments until May 2009 on my Trek 1200. Was I going to turn that down? No way, Jose! I put about $300 down on it BUT, there’s still $700 or so left to pay. Might as well get that out of the way.
Before we all decide to ‘splurge’ or pay off debt with our so called rebate check, consider shaving off about 15% from your check. This is for the ordinary tax consumer. After all this rebate will be taxable on our 2008 filings.
As an accountant, I recommend taking the 15% and put it aside or immediately write the IRS a check so that you will not spend it.
I, personally, will not be stimulating the economy with my rebate. I will be paying debt. Although, I would like some gear for my bike. Spend wisely!!
Most people will be lining the banks pockets by paying down debt, or helping the Chinese Economy by buying more Made in China stuff.
Mine is going to buy new Chickens, a couple of Wald Baskets (made in USA) for my cruiser and grocery getter. 
I will be subsidizing offshore production by supporting a US company. I have a deposit on an IRO Rob Roy group buy frame, so a lot of that rebate money will be going toward building up that frame. Not sure which way I’m going with it yet. But really, the check will go into the same account I pay bills with, so where will that $600 actually go? Who knows. I was going to build the bike up anyway, without the rebate, so I could just as easily say that it’s going to pay off debt as well.
On the whole, though, I think a cash payout to the american people like this is a steaming pile of shit, basically a bribe so we don’t riot over the total economic mismanagement by the current administration. How long are we going to be paying for this loan of $150bil and how much interest are we going to have to pay on it?
Wahoonc, will the chickens ride in the Wald baskets?
I think we’ve started something here…everyone is hopping on the poor-man’s utility bike. That’s fantastic!!
Mike, I totally agree with your sentiments…I seem to recall GW’s approval rating skyrocket when the first round of tax rebate checks went out in his first term. Throw money at the “sheeple” and we’ll all quiet down!
I am going to put it towards my vacation fund which ironically will be spent mostly outside of this country….that is ….if the fund is large enough to get me out of here by this summer!
The only bike equipment I can possibly see myself buying would be some panniers or a better messenger bag to go with my redline 925. Also maybe one of those oh-so-sexy fluorescent windbreakers so I don’t get hit by a car. Living in a small apartment is not conducive to building up your bike collection.
I just thought of something I am definitely going to do with a small amount of my rebate – Overnight getaway with my wife.
I will ride her off her feet and put her on my handlebars and go away for a night. Dinner, romance…you know the outcome.
This political ploy is a complete waste of money to make people feel good and shows a complete lack of ecomonic leadership from everyone in government. All this money will be borrowed and has to be PAID BACK by us, and likely our kids (the interest). The best thing to do would be to buy a 6-month CD (Certificate of Deposit) with the money so that at least the tiny bit of interest will cover the tax bill that will come due next year for everyone.
This political ploy is a complete waste of money to make people feel good and shows a complete lack of economic leadership from everyone in government. All this money will be borrowed and has to be PAID BACK by us, and likely our kids (the interest). The best thing to do would be to buy a 6-month CD (Certificate of Deposit) with the money so that at least the tiny bit of interest will cover the tax bill that will come due next year for everyone.
At least Ben will get some other tax breaks if his overnight getaway results in a brand new baby!!!
Ben, don’t forget to save up for the ticket that you will get if you get caught for riding with your wife on the handlebars .
I’m not sure what long term benefits they could possibly expect from these rebate checks. It’s like offering a cool glass of water to man that is totally engulfed in flames. A little temporary relief perhaps.
But still, we must spend this money wisely. I’m thinking spinning hubcaps for my Hummer. That’ll put this country back on track!
The $300 to people who didn’t pay income tax is a joke. That’s just enough money for them to blow at WalMart on DVDs or cheap Chinese toys. It’s not going to help anyone.
Ben Castaneda must be a crummy accountant. Straight from the IRS website:
Q. Is my stimulus payment taxable?
A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment.
Q. If my stimulus payment is not going to affect my 2008 tax refund or increase the tax I owe next year, why is it I need to retain the letter that lists how much I received?
A. In the event you do not qualify for the full amount on your 2007 return but you do on your 2008 return, you will need to have the letter as a record of the amount you previously received. [New 4/11/08]
Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?
A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.
