Yielding Wealth | Personal Finance

The Recession, Tax Rebate Time and Personal Finances

by miranda on April 28th, 2008

I’ve been thinking a lot about “economic stimulus” and the tax rebate. The tax rebate, especially, was brought to my attention on Friday when the announcement was made that direct deposit tax rebate payments will start today — ahead of schedule. Tax rebate time will continue through July, depending on when you filed your tax return, what your last name is and whether you are getting your tax rebate via direct deposit or check.

And whether or not we’re in a recession (which is debatable) it is important to keep in mind that with food prices inflation and increasing oil prices, this tax rebate isn’t likely to do much for the economy. Indeed, a lot of people will probably us the money to buy increasingly expensive necessities. After all, it’s really about personal finances and priorities. It’s not longer about the economy. Indeed, one commenter made a very good point about all this recession talk:

I don’t care what you call it. Six houses in my neighborhood are in foreclosure. Three of my neighbors have been laid off. The people in the house next door have walked away and the house is now abandoned. And I live in Fairfax County, Virginia, which is supposed to be one of the wealthiest counties in the US. I’ve been around more than 70 years and have never seen anything like this in my lifetime.

All this talk about “economic stimulus” and recession and what to do with the tax rebate doesn’t really speak to the individual level of personal finances that you need to consider. At this point, you need to do what’s right for you.

image credit: sxc.hu

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POSTED IN: Economy, Family finances, News, Personal Finance, Taxes