That’s the richest damn plumber I’ve ever seen….

It’s something I’ve made mention of on more than a few occations here.  The economy sucks.  In a big way.

And it’s not getting better, it’s getting worse.  Increases in cost of imported good, Decreases in the value of the dollar, Continued massive spending in Iraq, our country’s debt grows at an astronomical rate. 

Unemployment continues to grow as jobs are outsourced to other countries and businesses cut employees (or just their number of hours spent working) to save money (not seeming to decrease the bonuses their CEOs recieve at the end of the day… but that’s another rant for another time).

So which of the two Candidates proposes a better way for us to get out of it?

Here’s the tax plan each Candidate is proposing (note that just because they’re proposing these plans doesn’t mean they’ll happen, every plan would have to be voted upon by Congress)

The tax plans                                                   Obama                           McCain
$227,000 – a year – plus                                $23,000 more               $15,000 less
$112,000 – $227,000 (15% of population)  $2,300 less                    $3,200 less
$66,000 – $112,000 (20% of population)   $1,290 less                     $1,009 less
$38,000 – $66,000 (20% of population)     $1,042 less                     $319 less
$19,000 – $38,000 (20% of population)     $892 less                        $113 less
$0 – $19,000 (20% of population)               $567 less                         $19 less
Impact of tax changes on federal budget:   Returns $700 billion     Costs $600 billion
Source: Urban-Brookings Tax Policy Center. Numbers are estimates and averages.

So there you have it, McCain gives big breaks to the top 1%, and smaller breaks to the middle class and below- basically keeping the Bush tax cuts intact, Obama aims to give the middle class and below a bigger break- but make up the difference by taking it out of the top 1%.

Under McCain’s plan the deficit will continue to grow.  Of course, neither of these plans take into account the spending that could be occuring in our various overseas endeavors (ie: continued occupations in Middle East countries and picking fights with others) so it’s quite likely that neither candidate’s plan will rectify the cash bleed as it stands.

Anyone scared yet?  Well don’t even think of trying to run for the border, while we’re fighting to keep the illegals out of the country, there’s a new provision that was added to the Heroes Act of 2008 which was primarily touted as the bill that increased benefits for veterans- if you want to leave the country, you will be taxed on all of your assets as though you were selling them.  Think of it as a moving tax.  Everything you own will cost you.

So with the deficit rocketing towards a record $400 billion for the year, $9 trillion total, we’re all tied in to this wonderfully sinking ship.  One thing is clear, it’s not going to matter what Candidate takes the wheel- it’s not going to be a matter of steering to change the course, it’s going to be a matter of fixing the hole in the bottom.  Something that’s going to require an overhaul in how we as a nation do business.

I’m not a smart enough man to have the answers, but I think it’s time we stop looking for soundbites and flag pins, and start looking for the folks who might actually have the knowledge to apply to fixing the problems we face.

Two weeks ago Cindy McCain swore she would never release her tax return even if her husband became President.

Reneging their words must be a McCain family trait. She’s decided to release them anyway.

Cindy McCain 2006 Federal Tax Return 1040 PDF Part 1 and Part 2

Also enjoy Senator McCain’s 2006 and 2007 returns.

John McCain 2007 Federal Tax Return 1040 PDF here.

John McCain 2006 Federal Tax Return 1040 PDF here.

I’ve had a few questions and been made aware of concerns over not receiving an economic stimulus check yet during the last two days. According to the IRS payment time table, the final direct deposit date was on May 16th. Even if you haven’t gotten your direct deposit yet, it doesn’t necessarily mean there’s a problem with your tax return.

Whether you agree or don’t agree with the governments decision to kick-start the economy in this way, here’s the main reasons you may not have gotten your check on time:

1. If you filed with a tax service such as Jackson Hewitt or H&R block, your stimulus payment may be on a later time table. More likely than not, you agreed to have their tax service fee directly taken out of your tax return. By doing that, your return didn’t come directly from the IRS. It was actually paid to you by the tax service company. To the IRS, this means that you’ll receive your payment by check and not by electronic deposit. The time schedule for the check payments are listed here.

2. Perhaps it’s too obvious to mention, but it’s possible there was an error with the tax return that was filed. In this case, the IRS will contact you to advise of the problem. Once the issue is remedied, the stimulus payment will be sent or direct deposited.

Also from the IRS website:

A small percentage of tax returns will require additional time to process and to compute a stimulus payment amount. For these returns, stimulus payments may not be issued in accordance with the schedule above, even if the tax return was processed by April 15.

Lastly, when in doubt, ask the IRS! If you still haven’t received your refund within 28 days from the original IRS mailing date, you can start a refund trace online here!!

The government’s got your stimulus check in the mail or electronic deposit en route. They’re hoping we can collectively take our inebriated economy by the boot straps and pull it back into action with such a large influx of cash. But this all depends on how we spend it.

With most citizens receiving $600 per single tax payer and $1200 per family, that’s a nice chunk of change to put towards…. something.

The Feds want you to go buy the stereo system you’ve been eying for the last six months. Or, maybe throw it down on a new bedroom set to spruce up the look of your home.  But don’t forget about all that credit card debt we already have. There’s also the rising gas cost or vacation time that’s coming in July.

In national surveys, most people indicate they’re planning to pay down their debt. But something tells me they may change their mind once that lump of cash is sitting in bank accounts.

What will you do with your check?

Come and get it.

The Official Economic Stimulus Tax Rebate Payment Schedule – (for Federal Tax Returns Received and Processed by April 15, 2008):

Still haven’t received your stimulus payment!? Look here!

Yee haw!!! I’m gonna get me some economic stimulus!

Watch your mail boxes. Those $600 checks (for singles) are en route. Before you receive your checks, you’ll get a payment notice in the mail heralding it’s arrival.

It’ll say something like:

Knock knock.
Who’s there?
Stimulus.
Stimulus who?
Oh, just spend the damn money when it shows up.

The PDF version of the letter is here.

EDIT Sunday, 3/16/08 at 6:15 PM

The notices being mailed to tax payers advising them of a pending stimulus check has cost $42 million. That amount doesn’t include the next wave of letters that’ll be sent to those who still haven’t filed their taxes yet.

Dear sweet baby Jesus. Waste of time/waste of money anyone??

Here are the top questions asked:

1. When will I get my check?

The exact system and timetable has not been worked out, but it likely will be based on Social Security numbers and geography, not on the order tax returns were filled or alphabetically.

UPDATE: March 17th, 2008: IRS press release details payment time table here!

2. What are the requirements to get my check?

You must have filed a 2007 tax return and reported at least $3,000 but not more than $75,000 ($150,000 joint income). Plus if you have dependent children, expect to cash in an additional $300 each. (Toys-R-Us here we come!)

3. Why is the government doing this?

Because the economy is shit and our government has devised this quick fix to try and entice us into buying that sofa, Dior sweater, or make a decent payment on our credit cards. The theory being that by pumping this collective clump of money back into our economy, we will boost (or stimulate?) our economy that isn’t floundering (says Dubya).

The birth of this decision as reported on Patriot Missive is here which includes my (not so) veiled opinion on the matter.

Alright people, be sure to spend it all in one place!

Soure: Linda Stiff, acting IRS commissioner.
(Perhaps it’s just me but isn’t it amusing the IRS commissioner’s last name is “stiff”? Just sayin’.)

Still haven’t received your stimulus payment!? Look here!