Thursday, January 24, 2008

A rebate is for those who paid in the first place

Pronunciation: \ˈrē-ˌbāt\
Function: noun
Date: 1656
Definition: a return of a part of a payment

To rebate something to someone who did not pay in the first place is not, by definition, a rebate. I am all for cutting taxes. However, a tax rebate is for those who pay taxes. Those who do not pay taxes should NOT get a "rebate". It becomes a hand out and a form of welfare or entitlement at the expense of all others who do pay taxes.

Here is the full article. And the relevant quote:
House Speaker Nancy Pelosi and Republican Leader John Boehner scheduled a news conference for 1:30 p.m. EST to announce the $150 billion package, hammered out in a week of intense negotiations with Treasury Secretary Henry Paulson.

"We are pleased that the negotiators have been able to reach an agreement on an economic growth package," White House press secretary Dana Perino said Thursday afternoon. She said Bush would make a statement about the deal later in the day.

Congressional aides, speaking on condition of anonymity because the deal had not yet been announced, said they hope the checks could go out as early as June.

Individuals who pay income taxes would get up to $600, working couples $1,200 and those couples with children an additional $300 per child under the agreement. Workers who make at least $3,000 but don't pay taxes would get $300 rebates.

The rebate part of the plan would cost about $100 billion, aides said. The package also includes close to $50 billion in business tax cuts.

It is my understanding that the "rebate" for those who do not pay taxes was a concession made by Republicans in order to get the tax rebate/tax cut. Though I am all for the tax cut and find it appropriate, the idea of yet another entitlement is repugnant.

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