Fix the Economy

We have accepted the fact that in lieu of a stimulus check in the mail, we should be seeing more money in our paychecks.  And that is fine and good. In fact, rumors abound throughout this country that Obama will seek major tax cuts in his stimulus plan, and there are several tax breaks under consideration right now.  All this talk makes taxpayers feel like relief is finally on the way.  But what can we really expect?  One plan is to provide a tax credit that would allow companies to reduce the tax they withhold.  However, if that is only $500 for individuals and $1000 for a couple, as proposed on CNN.Money, I don’t see how that is going to impact the way I spend my money. If I break $500 down by 26 paychecks a year, I will only see an increase of about $19 per payday.  I do understand the economics behind this but it doesn’t make me feel any better. A mere $19  is not really enough money to increase a credit card payment and it’s not enough money to stash away in a savings account so I probably will spend it without thinking, which is exactly the intention of this tax cut.  The problem is, $19 every other week is not going to make me feel very hopeful that the economy is turning around and this feeling will probably lead me to continue living as frugally as possible.  I wonder how many others will feel the same way?  Read more »