Question On Govt Checks

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Queston on Govt Checks

With apologies toTF’s non US members. The Govt Checks is a US thing.

The far bigger question is what will you do with your Govt Check?

Politics aside. The corona virus / covid-19 response and outfall could prove to be an over reaction or a correct reaction that prevented massive deaths. The economic result could be devastating or just another speed bump on first world economies. We won’t know until we can see it in the rear view mirror if ever. But for some, right now, it’s tough going. Really tough going.

One thing that is clear to me is that we are either “in this together” or “each out for himself”. I without doubt fall into the we’re in this together category. So, my govt check if and when I receive it will be donated to those who actually need it. Like all of us here I either have a boat or am seriously considering owning a boat. It’s a toy. Nothing more than an expensive toy. Yes I take it seriously, the responsible operation, the safety of all aboard, the maintenance. But I don’t make a living with it. Been there, done that, got the T-shirt. You can have the damned stained worn out T-shirt. Running a work boat is work. Hard work. My current boat is a toy. That means I have disposable income to chose to spend on my toy.

So the gov’t check is not critical to me. Lest any of you think I’m wealthy, I’m not. Lower to mid level middle class. My boat is older and needs a lot of TLC. It’s a stretch for my budget. But, I don’t NEED it.

As soon as my check arrives it will go out the door to those truly in need. Maybe the local food bank. Maybe the charity that is supporting medical first responders in need of PPE or simply meals as they work double shift 7 days a week. Maybe massive tips to those just scratching by. I mean the servers who used to hustle to put my meal and drinks on the table but now are doing curb side take out at a much reduced level. Maybe kids graduating this June into a job market with near zero opportunities.

That check, at most $1200, and at today’s local diesel price of $1.23 would buy me 975 gal of diesel. Oh how I’d love to get that in my tanks. But, really? If I can’t afford 975 gal of fuel at 3 X that price the boat should be put up for sale. Can my barber, an independent shop owner, who’s been out of work for 5.5 weeks and looking at another 4+ weeks survive? I doubt it.

We’re either all in this together or we’re selfish. I know which path I choose. Which path do you choose?
 
I don't have to chose. :)

Seriously, I wonder how many of those getting the check realize that those not getting the money due to income levels have put more into the system that is giving them the money than they have?

What a great system!
 
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It was never meant to have no inequities, just quick, dirty, and effective. Oversights were anticipated and ignored for speed and expediency. For example, it was known beforehand that some dead folks would be getting money. Sure, not a desired outcome but a grain of sand on a beach. Preventing that would have meant a significant delay getting the money out the door. Big deal.
I don't have to chose. :)

Seriously, I wonder how many of those getting the check realize that those not getting the money due to income levels have put more into the system that is giving them the money than they have?

What a great system!
 
It was never meant to have no inequities, just quick, dirty, and effective. Oversights were anticipated and ignored for speed and expediency. For example, it was known beforehand that some dead folks would be getting money. Sure, not a desired outcome but a grain of sand on a beach. Preventing that would have meant a significant delay getting the money out the door. Big deal.

I think the bigger issue is that the small business grants and loans were going to big business and national chains. Ran out of money very quickly. More oversight clearly required there.
 
And to fancy private elementary and high schools with large endowments.
I think the bigger issue is that the small business grants and loans were going to big business and national chains. Ran out of money very quickly. More oversight clearly required there.
 
"The nine most terrifying words in the English language are: I'm from the Government, and I'm here to help." - Ronald Reagan
 
Folks with COVID-19 might not agree with that statement; nor victims of hurricanes, tornados, and fires. Many have no use for government until they do. Calamities have no favorites.
"The nine most terrifying words in the English language are: I'm from the Government, and I'm here to help." - Ronald Reagan
 
As a follow up to this thread, I just got my "Economic Impact payment Card" in the mail on saturday.
Took me 30 minutes to go online and activate it.
Going to transfer the funds into my savings account today. (couldn't do it at the ATM)
 
IF only we had a consumption tax , there would be no IRS , and no goodies for congress to sell.

Sure it would be about 20%. but when Uncle Sam decides to pour credit into the economy , the tax reduction could start instantly and folks would be able to spend , same day.

No more records to keep, nothing to file , bribes , hookers drug dealers paying taxes ,a Utopia of sorts.
 
No IRS or other enforcement agency just because there is a consumption tax? And how would that work? No tax cheats? No cooking the books? All are honest? No under the table sales like we have now to the tune of over $300 billion of lost tax revenue by cheaters? As for no loopholes, how likely is that? Will drugs be taxed? Restaurant food, yes, groceries, no? Home rental? Twenty per cent add-on on home purchases? The list is endless. A consumption tax is not nearly as simple in practice as you seem to think it is.
IF only we had a consumption tax , there would be no IRS , and no goodies for congress to sell.

Sure it would be about 20%. but when Uncle Sam decides to pour credit into the economy , the tax reduction could start instantly and folks would be able to spend , same day.

No more records to keep, nothing to file , bribes , hookers drug dealers paying taxes ,a Utopia of sorts.
 
And those drug dealers and hookers, sure, they are going to file their consumption tax return and pay over that 20% they just charged you rather than just pocketing the money. And, no bookkeeping? You, sir, are incredibly naive. No matter what system of taxation is in place, dishonest folks will abound. In fact, a consumption tax would be easy to cheat.
IF only we had a consumption tax , there would be no IRS , and no goodies for congress to sell.

Sure it would be about 20%. but when Uncle Sam decides to pour credit into the economy , the tax reduction could start instantly and folks would be able to spend , same day.

No more records to keep, nothing to file , bribes , hookers drug dealers paying taxes ,a Utopia of sorts.
 
IF only we had a consumption tax , there would be no IRS , and no goodies for congress to sell.

Sure it would be about 20%. but when Uncle Sam decides to pour credit into the economy , the tax reduction could start instantly and folks would be able to spend , same day.

No more records to keep, nothing to file , bribes , hookers drug dealers paying taxes ,a Utopia of sorts.
Australia has a 10% consumption tax(GST- Goods & Services Tax). It misses some things,like fresh food,and we still have income tax.There is discussion about increasing it. The $ raised go directly to the States, though levied by the Federal Govt.
It has not stamped out "the cash economy". The shysters add on 10% GST and keep that too.
 
Most states have sales taxes and would collect the Fed tax , as they now do for their own treasuries.

The only reporting would be the State to the Feds. The State would get 1/2% of taxes collected

Everything new sold would be taxed at the final point of sale.

Excepting anything would give the politicos indulgences to sell, much ungood.
 
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So, how would the tax be collected in states that do not now have a sales tax? And did you know that States regularly audit sales tax returns because tax cheats UNDERREPORT their sales? Apparently you think everyone is going to magically become honest, like your drug dealers and hookers and not to mention all the folks who now work under the table. Not happening. A consumption tax brings with it just a different set of problems and the idea that some sort of enforcement agency would not be needed is preposterous. Oh, you would leave it to the 50 states. How's that working out with the national response to Covid? It would be utter chaos and massive inconsistent enforcement (unequal) if left to the 50 states. Now, I am not necessarily opposed to a consumption tax but, I can assure you, that the only way it might work is if done on a national level. And, in any case, it would not lessen the level of cheating.
Most states have sales taxes and would collect the Fed tax , as they now do for their own treasuries.

The only reporting would be the State to the Feds. The State would get 1/2% of taxes collected

Everything new sold would be taxed at the final point of sale.

Excepting anything would give the politicos indulgences to sell, much ungood.
 
So, how would the tax be collected in states that do not now have a sales tax? And did you know that States regularly audit sales tax returns because tax cheats UNDERREPORT their sales? Apparently you think everyone is going to magically become honest, like your drug dealers and hookers and not to mention all the folks who now work under the table. Not happening. A consumption tax brings with it just a different set of problems and the idea that some sort of enforcement agency would not be needed is preposterous. Oh, you would leave it to the 50 states. How's that working out with the national response to Covid? It would be utter chaos and massive inconsistent enforcement (unequal) if left to the 50 states. Now, I am not necessarily opposed to a consumption tax but, I can assure you, that the only way it might work is if done on a national level. And, in any case, it would not lessen the level of cheating.

Boy is this ever true and then some. It would have to be some sort of VAT like in Europe, collected at the wholesale level by the feds, like tariffs. As Jack says, the accounting, enforcement and audit burden would be as big as we have today. To think otherwise, or to think the same kinds of amendments and engineering of the tax codes like we have now wouldn't take place to accommodate various industries and interest groups, is the height of naivete.
 
Our GST was sold to us on the basis income tax would be lowered, it was, a bit...Another aim was to catch the crooks not paying income tax.
As to Govt payment mailouts during Covid, out Govt just made the second of 2 payments. Less people get the 2nd one after some fine tuning. It`s intended to deliver $ to those most likely to spend it asap, those who have to, to survive. Thus it helps those in need, and injects spending $ into the economy, which will be spent and not saved. It worked with the first tranche, should work with the second.
 
Still no sign of the fresh created debt.


Has anyone got the check ?
 
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