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March 23, 2004

Econopunditry

Instapundit has a very interesting reader-involved post going about the Bush tax cuts and their stimulative effect on the economy. Readers are telling their own stories of how the Bush tax cuts are changing their finances for the better. The tax cuts are stimulating folks to support President Bush. And Instapundit's post is bound to have a stimulative effect on one of HobbsOnline's key sponsors...

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Comments

Interesting, but I noticed that those with happy stories to tell gave little indication of what kind of earnings levels or occupations they are in. I suspect that they are generally in what we could call well-off situations. Buffy and Skip weigh in with the good news.

Those with less favorable experiences seem to have no problem characterizing their economic status. For them, a lowering of two or three hundred dollars doesn't really confer much economic advantage, and can easily be offset by other increases in costs for school tuition, local services, etc. I know, I know--they don't pay much, so they don't deserve to get much back.

Also, talking only about refunds can be misleading. I can't count how many times I have heard lower income folks (working poor?) brag about how big a refund they got, when in fact they had been grossly overwithholding.

Posted by: SemiPundit at March 23, 2004 02:54 PM

Were they only grossly overwithholding, or did EITC also play a part????

Posted by: Sandy P. at March 23, 2004 10:28 PM

I should have been clearer. The people I was referring to are young singles or young couples who both work and earn enough to be ineligible for the credit.

I only meant to make a point that there are a lot of people out there who have no idea how taxation works (or doesn't).

I'd still like to know what Buffy and Skip do for a living, though.

Posted by: SemiPundit at March 24, 2004 12:10 AM

I was one of the people that commented on the unexpectedly high refund on InstaPundit.

I am a software engineer ( Database Administrator). My wife does not work outside of the house as she cares for our children. I earn a pretty good living but with a mortgage, car payment...I would say we a firmly entrenched in the middle class.

As far as the Buffy and Skip reference, I work very hard for the money I earn. I work many hours and weekends. I guess the implication is that because I earn X amount I am a yuppy undeserving of a tax break…which is crap.

Posted by: Joseph O'Brien at March 24, 2004 11:57 AM
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