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Rebate? Oh really!

 Monday, February 11, 2008

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With the U.S. economy in "trouble," according to the national media, the president and Congress both think that a tax rebate is a sound way to stimulate the economy. So as I am awaiting my check (due in June), here are a few thoughts that have come to mind.

According to Webster's online dictionary, a "rebate" is a noun defined as "a return of a part of a payment." (www.m-w.com). The president proposed a tax rebate to those who have actually paid federal income taxes, not paid Social Security (FICA) taxes. This would have been truly a rebate. The government would have taken a portion of my money that I paid in and returned it to me. This sounds really good, right?

When Congress took up debate on the rebate plan, something happened to what started out sounding like a really good idea. While the president wanted the rebate to only go to those who actually paid taxes, the Congress decided that his plan wasn't "fair." The Congress feels that it is unfair to return money just to those who have paid it in. They believe fairness dictates that they take my tax money and send it out to someone who hasn't paid in 1 cent of federal income tax. Does this sound fair to you? No, what this sounds like is socialism at its finest -- the redistribution of wealth.

Let's look at it another way for a moment. Have you ever bought something from say Best Buy or Office Depot and it came with a rebate slip to mail in? Sure most of us have done that a time or two. To get that rebate you had to mail in a receipt to prove that you spent money on a product and in return the manufacturer is going to send part of that money back to you in the form of a rebate. Again, very simple stuff -- and fair. You spent money, you get money back.

Now would that same company just hand out rebate slips at Best Buy to anyone who wanted to mail one in for free money? Of course not. These companies aren't stupid and, by the way, they aren't running for re-election either.

I leave you with these thoughts. When you get your long-awaited "rebate" check, don't run out to Wal-Mart and send your money to China. Take that money and pay down some debt or put it into your savings. If the government can't spend money wisely, at least we can do our part. And finally, consider this: Is the rebate really a rebate or just a down payment on your vote in November?

-- Chris Sweatman, Bowman

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