6 May 2008
Unintended Consequences
The mainstream media coverage of the economic stimulus payments from China the US government has been abysmal. Reports give the impression that everyone who works will get $600, or $1200 for a couple. But what they leave out is that for people with a tax liability less than that, the payment will be as low as $300 for individuals and $600 for couples. The $300 per child is not affected.
Most people have not received their payments yet, but the media is all abuzz with articles on how to spend your money.
These articles give the impression to the casual observer that they will receive the maximum dollar amount. I have yet to read any explanation about the amount being less if you have a low tax burden. And the Free Press even had an article that stated the amount as $600/$1200, without the quantifier “up to.”
I took the time to read the IRS website about the stimulus payments, so I have known the exact dollar amount we would receive. But I have come across a number of people who expect the maximum amount, and won’t be getting it.
Most of these people are low income and not as well informed as the average news-junkie blogger. They get their information from MSM sound bites.
The MSM has let them down.
I worry about the people who have already spent their money, only to later find out that they were getting $300-$600 less than they expected.
I have a feeling that we are looking at another situation where the government, in its attempt to fix something, is making the situation worse. In more ways than one.
