I’ve written several times about the economic stimulus checks and even answered quite a few questions about it as well. One of the most common questions I have gotten recently is whether or not there will be a second economic stimulus check. Right now there is no definitive answer, but the Democratic party is leaning heavily on a 2nd stimulus check as part of their election campaign.
In June, Barack Obama proposed to spend $50 Billion on an emergency economic stimulus package to relieve pressures on the current economy. Not only have rising gas prices caused a lot of problems for the economy, but so have increases in food prices, home foreclosures, job cuts, and more. Obama’s proposal also includes tax relief for retirees, seniors, and the middle class, debt relief for students, extended unemployment benefits, and the establishment of a $10 billion foreclosure prevention fund.
How will the government pay for the proposed second stimulus check?
Obama proposes to place a “a windfall profits tax” to pay for the $1,000 emergency rebate checks to help consumers pay for $4 a gallon gas. The windfall profits tax would come from US oil companies, primarily Exxon Mobile.
It seems like Obama’s plan is to increase taxes on the oil companies because they were extremely profitable. But is that really fair? Yes, Exxon Mobil and other oil companies are obscenely profitable. Exxon posted a quarterly profit of $11.68 billion this quarter, which comes out to $1,485 per second. Insane! But that doesn’t mean the profits are going straight into a corporate bank account and sitting there. Exxon spent $7 billion dollars last quarter finding and producing more oil. I’m not defending big oil, but I think it’s too easy to make them a scapegoat.
Will a second stimulus check improve the economy?
Many Democrats were vocal opponents of the first economic stimulus check when it was announced. Now key leaders in the Democratic party, including Obama and Nancy Pelosi, are behind pushing an emergency stimulus package through. How much will it help? According to Barrack Obama, a second stimulus check will help people for 4 months.
“This rebate will be enough to offset the increased cost of gas for a working family over the next four months,” Obama said during a two-day campaign swing in Florida. “It will be enough to cover the entire increase in your heating bills. Or you could use the rebate for any of your other bills, or even to pay down your own debt.”
What happens after the 4 months are up? Will the economy have righted itself? Will a more permanent solution be in place? Is it really fair to require a company such as Exxon Mobil to subsidize the American lifestyle for 4 months?
Should the government support a second stimulus check?
By most accounts, the first stimulus check didn’t make a marked impact on the economy (in fact, many people still haven’t received their checks yet). The economy is still facing an uphill battle, much of which is caused by high oil prices and increasing costs for essentials such as food and housing. Personally, I don’t think a 2nd stimulus check is the answer. What do you think?
Read more detailed information about Obama’s Emergency Economic Stimulus Plan and Obama’s Road to Recovery – More Jobs, More Money in Your Pocket.
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YES I AGREE!!!!!!!!!!! I if I could buy a new car I would. Bailing wallstreet out and all the other companies out isn’t helping me any. What about us the ones that bust our butts, trying to get ahead and always get kicked to the wayside. What do we get? Who’s going to bail us out….as it sits NO ONE!
I think a second check would help. I would be able to pay off some of my bills. Its all right for the rich to get rich……its all pipe dreams here. The rate this economy is going I will never get caught up.
I agree on the second stimulus checks. My husband got laid off. We have 2 kids. A 3 year old and a 7 month old, with just my income its very hard. The $600 came in handy and I know the $1000 will come in handy also. Everyone has there reasons of need, so i feel like the rich shouldn’t even comment on whether we need a second stimulus check. They are benefited year round.
Any extra check will be great , however a $1000.00 is not enough to even cover general house-bills with every-thing going up we americans tax-payers all americans need tax credits to keep more of our money.
I think a second stimulus check would help the American people greatly, although I don’t think 1000 dollars is enough… I don’t know where the money comes from or have a philisophical response like most others have submitted, I’m just a regular average American who bought our first home last summer and trying to stay afloat in an expensive world. Us Regular folk are drowning out here trying to provide food to our children and pay our bills and have gas to get back and forth to work everyday. If we could get that second stimulus we could pay down some bills created by high gas prices and increasing food costs henceforth decreasing some burden off our shoulders long enough so we can get back in the game and stay on top of things. One thing is of utmost importance, there should be a fuel cap so prices cannot surge any higher or an immediate SUBSTANIAL pay raise for everyone across the board. Like I said before I don’t pretend to know how to make any of this happen or where to get it (the money) from to do all of this. I just want to extend again…… WE NEED HELP ASAP!!!!!! SOS SOS SOS SOS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Please agree if any of this sounds familiar to the rest of you…………..
Renee’ W. ~ Pikeville, Ky.
It’s strange how Obama has back flipped his campaign promises in that this stimulus check is now a tax rebate, rather than a direct cash payment. Still. I do think it is a better fiscal stimulus than straight checks.
This is my take on the stimulus check, Our economy is shot to threads and we have to do something to fix it. We are definitely not the nation that we once were when we were initially founded. My big question is for all of you who go this stimulus check the first time.Why are griping about getting a second one why? Did you not enjoy the money you got and I know have spent by now? I mean I enjoyed it. Whether it helped us or not I think we need to let Washington do its job and try and figure out a solution for this problem we are in. And in the mean time I think we as Americans need to pray that our country and economy gets fixed and quick before we are completely bankrupt and owned by another country.
Re PE Obama’s plan to give tax breaks of $500 (single) or $1000 (family), will it really make much of a difference to any individual or family?
Remember we will have to pay all that money back with interest. And not only will WE have to pay it, but so will our children and grandchildren.
I say skip that part of the recovery and invest in jobs only.
Just my humble opinion. Better we all take a good hard look at our expenses and cut back.
Imani: I don’t think it will make much of a difference to most people, especially because he is proposing that it is distributed in the form of a tax credit which would reduce the amount of taxes withdrawn from the first few paychecks of the year. This would not be a check like it was in 2008. Personally, I believe investing in jobs and infrastructure is a better investment.
I feel asthough we should get a stimulus check. I’m barely able to make it to my job by the end of the week without borrowing money. I think Obama will be fair to all people.
I would love to have the money too but if it’s not in the form of a check that we get all at once, it’s not going to do me much good. Yea I’ll have a few extra dollars in my check every 2 weeks but that doesn’t add up to much in the short term. Everyone against this has every reason to be but at the same time, everyone who is for it has reasons too. My husband and I are making due even though we can barely pay bills and buy food and gas, but we are making it work. I agree with those above who said that those who are complaining about the stimulus idea didn’t mind getting their checks when we got them the first time. Right? Whether we get something or not, there has got to be a better way to run things so that everyone can live comfortably, not necessarily be rich and all that, but be able to pay bills and stuff, with out screwing up everything. Taxing big companies such as oil companies might be a good idea but why not other companies that make billions too? I can’t think of anyone off the top of my head but there are more out there than just Exxon/Mobile that are making just as much money but we aren’t asking them to contribute.
Shell: Great comment. Many people are only for one side or the other, but it’s good to see people look at the situation objectively. I agree with you – a stimulus will be much more effective if it is given in a lump sum versus a small addition to a paycheck. Most people won’t notice a small bump in pay, and will go on as they were before. Or worse, they would become used to the additional money and begin a new spending pattern that relies on that additional income.
We have given billons to the people at the top of companys- oil,auto,banks and ect. and today no one can afford to buy what they offer. Give the money to the people who will pay for any(stimulis) If enough is given the foreclosers would stop and people would start buying.
End of problem!
Following along, I agree with mel tehee’s idea. Let US decide whom to bail out by splitting the billions in the President’s stimulus package to ordinary tax-paying Americans (and legal immigrants who pay taxes). Although, I also believe something should be allotted to those who don’t make enough to pay taxes, as well.
Those who need it to catch up on mortgage payments, utility bills, food, or medical bills will use it thusly. Those who don’t, can bank it and save for rainier days or maybe buy that new car or refrigerator.
I am just advocating a different distribution of the money President Obama wants to spend to kick start our economy. More for the people and less for banks and big business who just used the money to line the coffers and pay out big bonuses (not to mention office renovations to the tune of 1.2 million….really!
Thank you for this opportunity to express my views.
Imani
~I vote~
Why is it such an easy fast thing to release billions of dollars to the banking industry so they can redecorate their million dollar offices and give each other bonus pay plus buy other banks in other countries which none of those helps our economy in the least…. They don’t have to account for how they spent the money, they did whatever they wanted with it and stuck their hand out for more.
All this while still not opening the financial doors to let the economy move again by helping people get mortgages, which helps a long list of people in multiple fields? When people can’t get mortgages, Realtors, mortgage agents, insurance agents, appraisers, home stagers, etc etc don’t make money. They in turn can’t sped money to all the people who usually get it from them. I fit in that next category as a graphic designer, they can’t afford to hire me to design their advertising. In turn, I can’t spend money where I normally would… and it just continues down the road.
Until you get the banks to open the doors, our economy will continue right on down the road it is going.
In the mean time, last stimulus check didn’t work because people didn’t get the money they were supposed to get. I am a single mom of two kids and was supposed to get $600.00 and only received half of that. I jut claimed it on my taxes to still get it. I wasn’t the only one that was told I would get one amount and received another.
A second stimulus check would help me get out of the hole and survive as I try to keep my head above water until everyone else is making enough money for us to get back to business as it should be. Right now I battle every day to keep the power on and the phone etc and not have my family evicted for paying the rent late yet again.
The stimulus check is a life line to hang on until the banks open the freaking doors again. Until they lend money gain instead of stuffing it in their own greedy little pockets, we stay the way we are. Do we have to give them money, sadly yes, just put conditions on it this time like they should have done before. It amazes me the stupidity with which that was handled, no conditions! What were they thinking???
We could already be on a better path if conditions had been set. “Here’s the money as long as it is used for these items and nothing else”…. here’s your sign.
As to some of the comments up top i agree with the stimulus 2nd check. I mean do you people HONESTLY think Obama and the GOVERNMENT don’t know what there doing and getting there self into with that much money.. Obama has got to do something drastic and fast because BUSH did his DRASTIC, SLOWWWWWW over 8 years. Now that Obama is in the house he doesnt have 8 years to get it back on track he has to make a move to get it going that way and act fast but hes not going to be able to make it complete in 8 years.
I also dont see nothing wrong with charging the rich more, charge them. Your well off you got everything you want and got millions in the bank. I mean commmon, so die with millions in the bank. Thats whats wrong with AMERICAN people they are Selfish and Greedy to the fullest. You only live once and if it wernt for God you wouldnt have it no way. Just think for all those filled with RICH if GOD were like that and never wanted to give to the poor and middle class and didnt care for them this WORLD would be Something. Words cant even explain it.
P.S. It is not “Obama”, it is President Obama! Show the man the respect he is due.
Thank you for this opportunity to express my view.
Sincerely,
Imani
~I vote~
You are out of your mind, the stimulus check is a fantastic idea and is well needed for people who are in the lower-middle class bracket. Helps pay off bills, feed faces, buy plane tickets for students to go see their family, and so on and so on. Our money is taken from our hard earned paychecks by the goverment and you know damn well they take too much! To get a measly $600 back of our hard earned money, it is a blessing. We slave everyday to work so we can live.
Some of us hardly work, in which I don’t think they should receive as much back as $600, perhaps the stimulus should be based on amount of hours people work a week. Cause as you all know, the more you work, specially if you are hourly, the more get’s taken out of your pay. So why lose money when you are busting your tail???
Long Live the Stimulus! I think it should be twice a year…
C
PS.
Sharon, GREAT POINT!!!!
Hope all get’s better for you and your family.
C
CHris G: you do realize this money is not free money, but an advance on your 2008 tax return? Had you not received the stimulus check you would have received a larger tax return this year.
And the government doesn’t take taxes based on how much you work, but on how much you earn – regardless of how many hours you put in.
@CHris G.
I’m in no position to judge you or anyone else. BTW, I am also in the lower middle class, raised two sons with much lower than legal payments from their father, sent them to private universities because they worked their butts off for their grades. They have loans and I paid every single dollar I could, making many sacrifices, including nothing more than 60 degrees in my home during winter, eating beans and rice, etc.
Almost lost my home twice. Bankrupted my 401k, paid the penalty and the taxes. Somehow, I pulled it off with the grace of God. I have not one single dollar of debt other than my mortgage and I never took a single dollar out of my equity.
Still, I would gladly give up the $500 reduced taxes if it means saving my sons and all our children a much BIGGER tax in the future. If you give up cable tele, you could easily save that and more. I did. As for what I did with the $600 of this year’s rebate, I immediately socked it away in my newly established ING account.
Could I have used underpants that aren’t stretched out and falling apart? Sure, but I am opting to save so I don’t have to hold out my hand to the government or anybody else when things really get ugly.
Again, I don’t want to start flame wars here or anywhere. Just that I worry about the long term ramifications of this stimulus package.
Maybe it would be an idea to offer Americans the option to not take it. In that way, those who must have it can, and those who can survive without can offer it back to the government/job creation. Seems a good compromise to me. Let me be the first to give it back.
Anyway, CHris, I hope things will get better for you and your family. Really, I do. Times are tough for all of us.
PS, I supported President Obama from the start and still do. Still the dollar amount of this stimulus is something that scares me, not for me, but for our children/grandchildren.
Thank you for the opportunity to express my views.
Imani
~I vote~
Stimulus 2009:
I am 23 years old with 2 kids and a wife…the economy is in a struggle and losing fastly…we are not the fault for this but an error that occured over time and now it falls on us as we struggle with the layoffs and no jobs…its a sad thing when you look at your wife and kids everyday and are too proud to tell them you are negative in the bank or dont have enough money to buy a rose on your anniversary…a stimulus check is needed and not needed…the bad thing is i am LOW class…most people who say they dont want it have either never been where sum of us are or are not low class citizens…you tell me how 15000 a year is supposed to pay 10k in bills alone (rent/land/electric/natural gas/phone/water/sewer) That my friends is not including gas for your car/FOOD/diapers/formula…so when saying no to a stimulus think about those that are 1 paycheck behind…a stimulus check would help put that 1 paycheck behind to 1 paycheck ahead if used right and enough was funded…on the other hand a stimulus check is not needed but a RAISE in hourly rates…i cant find a job right now for over 7 hour…minimum wage is $6.55 LOL wtf is that?? that is for high school kids and part time college kids…when a person has a family they cant make it off that and thats why a lot turn to illegal means…i tough my situation out day-to-day and tell my family we will make it…the government has bigger issues overall…1 being Border Security as a lot of the jobs down in the south are ran by mexicans and cut the american workforce down which raises unemployment…there are a lot of issues on the table for Obama but HE WILL HELP!!
last and all i will say again the stimulus check is a good and bad idea but the way times are even though the longer effects i have to say i really need a stimulus check as we enter a possibly neverending depression/recession
for a stimulus check to work $300 per person is not enough even in my situation…$300 x 4 = $1200 which is not even enough to pay 1 month of my bills unfortunately and with the layoff it would go towards food and my families needs before my bills…
Josh
Josh,
You are not low class. You may earn a low wage, but that surely doesn’t make you low class. You seem to be a man of great integrity. Maybe some help is just around the corner….
~Imani~
I pray for your and your family.
Josh: You are NOT a low class citizen, and don’t let anyone make you think otherwise. Having a low income is not the same as being low class. By your comment you are a hard worker and a loving family man. While you may not make a lot of money, you have that much going for you and that is more important than anything.
I don’t have answers for you though. I can’t give you a job or tell you one is around the corner. But I can pray for you and your family, and I will. I wish you and your family the best, Josh. God Bless.
Thanx for the support as me and my family pray to all those that are in need…and both of u are right…i just got upset seeing some of the blatent comments not thinking how the economy struggles effect everyone whether they may realize it or not…god bless all
Now we just have to hope they fix the stimulus plan in the senate because as it stands only 20% goes out in 2009 and most of the bill has nothing to do with stimulating the economy.
I’ve noticed that the dem are trying to make it look like the republicans are trying to stop the bill for foolish reasons and that isn’t the case. The republicans are the ones trying to cut the crap pork bills out and concentrate on making the stimulus package actually do as it is supposed to do.
Do a Google NEWS search for “stimulus pork” and sort it by date.
I agree, Sharon, there is no room for pork spending in a bill like this.
I’ve often heard/seen about how the bad old oil companies are getting these tax breaks/govt subsidies and we should just stop letting them because they are getting rich ripping us off….Get real people, oil companies get no more tax breaks than any other business that I have been able to find out, if you can name one that is specific to oil companies only, please post it. The only business that I can say with relative certainty gets “more than their fair share” in govt. incentives is the country’s railroads..but they have to keep those rail’s in good repair in case the govt. needs them, so it’s a trade off.
Anyone here commenting that the stimulus check is as dumb as the firs tone, I agree. The only advise I can give is to get used to stupid decisions because that is all we are going to have for the next 4 years.
Look people… politics and philosophical fairness aside, a check like this could put food in a child’s mouth and a roof over their head for another month or so. Long enough for their parent(s) to find a new job if they have lost one. That counts a little bit more than kissing Exxon’s behind for now. Poor Exxon. Right. Kthx.
I THINK THAT PEOPLE WITH ALOT OF CHILDREN 1 OR TWO OR MORE CHILDREN SHOULD GET ATLEAST $900.00 IN CASH.
THANK YOU,ASHLEY ATWOOD
what’s killing me is all these promises we have been getting about tax breaks an jobs coming. what about the feloners such as myself that has done our time,paid our fines an has not been in any trouble for years.. i have four children two disable an i cant get an job anywhere cause of the felony. I’ve gotten my nursing license an still cant get an job. don’t feloners deserve an sec chance? especially ones’ like myself who is trying very hard to do the right thing.four kids’ and single it’s very hard. forgiven never said forgotten just guide me I’ll lead myself the rest of the way.help single mothers’ plea.
Katrina: I don’t have an answer other than to say keep your head held high and do the best you can. I know you mentioned you have training as a nurse, but see if there are any other work force or training programs you may be eligible for. If you qualify for it, a little extra training may help you secure something. In the mean time, the only thing I can offer is moral support. Best of luck to you and God Bless.
I think Obama should have gone to people like Bill Gates and Donald Trump, and their ilk, for advice. Matt Romney too, anyone who successfully ran a business without bailouts. These people in the House of Representatives, what kind of experience have most of them had, to the point that they can figure out how to run the country economically.
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The stimulus plan has passed, which can be read about in the following articles:
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