Understanding Your Economic Stimulus Payment

I received this nice letter from the IRS called “Understanding Your Economic Stimulus Payment”. I got out a calculator to arrive at my own understanding and, from what I can tell, my stimulus award was taxed at a rate of 92.17%, which is the percentage of the $1,800 total that was taken back because we make supposedly earned too much in 2007. That leaves us with a whopping $140.90 which which to stimulate the economy.

That’s fine, I don’t really care about the money, but what irks me is that politicians run around spouting the gross figures, as if it has been rebated to everyone. But those of us who worked too hard and contributed too much toward our nation’s tax base were not the only ones who got left out.

I did a bit of searching and came across a blog article from a self described “Crazy Old Lady” who, along with her dog and cat, is getting by in life on $573 per month SSI income. She didn’t get a stimulus rebate either.

Go figure. They could have given her my $149.10 and I’d be ok with that. Apparently if you made too much, or made too little, you are deemed by the US Government less worthy of receiving stimulus money than those who achieved something in the middle.

Nevertheless, in looking at the bright side, my tiny stimulus rebate caused me to go do a bit more learning about it which in turn cause me to find Wendy’s blog, which is a delightful blog full of enjoyable and interesting reading. If you have a chance, go check it out.

Posted by Steve
8 years ago
Steve

Steve is a Real Estate Blogger, Husband and Dad, UT Austin Grad, Runner, Real Estate Broker and owner of Crossland Team and Crossland Real Estate in Austin TX.

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peter - 8 years ago

Well, if you’re OK with the govt. giving this woman your $149, why don’t you hunt her down and send her a check? If not, you’re just all talk.

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Tim - 8 years ago

Economic stimulus checks are just attempts at buying votes, and not contributing to our debt can only be seen as a good thing.

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Craig - 8 years ago

We got the full $1800 undiluted…gee thanks, Uncle. Reasoning that this was a craven act of borrowing from our children, we chose to return it to our two sons in the form of college savings. If only opting out of Social Security and Medicare were so easy..

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Tom - 8 years ago

No Stimulus check for us at all!

What’s wrong with families where earners went through extensive education to land good jobs? Why were we left out when we pay so much in federal taxes? Punishment for being successful?

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Austin Flat Fee MLS - 8 years ago

There is nothing fair about the current tax system; it seems like everything is designed with a political motive rather than being based on principles. Because of phase-outs, increasing tax brackets, etc. those that make more money almost always pay a higher percentage of their income in taxes than those that make less, yet somehow politicians can argue that the rich aren’t paying their fair share, 2 Americas, etc.

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