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$2T fiscal stimulus - How does it affect you

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  • #46
    Will receive it but feel guilty and don't need it. Probably will just use it to support local businesses.

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    • #47
      haven't followed it closely.
      it seems like a pretty terrible result of bitter squabbling.
      also seems like the goal was about 25% try to stabilize economy and 75% give money to people each pol already wanted to give money to.

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      • #48
        I don’t think this is a serious fiscal solution to the problem.

        One part of me wonders why the Fed went all in on this and so early. Powell is very different to Yellen who I think understood the market better.

        My interpretation : the Fed has played 80% of its hand. If there is marked worsening of the situation, there is the possibility that weird things happen like inflation spikes in certain areas or law and order break down. In that case there is a chance people will not trust having their money in bonds. At that stage, the feds efforts to backstop will be questioned. In the last crisis, people questioned who would backstop the Fed if things got worse, but it was never tested. It will be interesting if this ever occurs.

        Strategically, I think it may prove suboptimal for the Fed to have gone all in on this half baked fiscal response.

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        • #49
          Originally posted by Lithium View Post
          Interesting. So I guess someone scaling back who had a high income in 2019 could claim a credit on their 2020 taxes even if they didn't get a check?
          I hope this is true since I have fully retired and anticipate some dropping dividend income. My 2020 will be significantly lower than 2019. $1200 will not affect my lifestyle at all.

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          • #50
            Originally posted by Antares View Post
            I’ll suffer from increased taxes, mitigated, I hope, by the lower tax bracket I’ll be in when I retire in a few years.
            Somehow I have a feeling that at retirement I will be paying the same amount in taxes since they will raise the tax brackets so that you pay higher taxes for lower amount of income. Got to recover all that money handed out now.

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            • #51
              Isn't this the best time to borrow money though? The yield on Treasuries is negative. So, in a sense, investors are paying the US govt to keep their cash safe.

              Seems like prime opportunity to spend on programs. However, indiscriminate corporate bailouts with no strings attached is not the best way to use it. 2008 redux, ugh.

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              • #52
                Won’t get anything personally but hoping my hospital gets enough to pull it back from the knife-edge.

                oh, and a crippling deficit. There’s that.

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                • #53
                  The stimulus is frustrating but most economist suggest that being overly generous with your subsidies is better then being stingy in the long run. That's one of the things that people think that the government did wrong in 2008, there was too much concern that people who were sloppy or irresponsible would be mortgage subsidies so in the end, very people got mortgage subsidies. Economist think that actually made things worse for everyone by depression the housing market more then it need to be. I understand that theory, I just wish that these stupid lawmakers would stop using these spending packages to add on little favors for their constituents or push their unrelated agenda. It also would have obviously been better if the government were in better fiscal standing prior to the crisis (running a surplus or balanced budget). Economic downturns are not the time to try to limit government spending though. I think that history has shown that when governments try to do that, they end up in a much worse position. It makes sense, if you have more taxpayers that are out of work for a longer period of time because you were trying to limit government spending, you end up with a smaller economy and lower government revenue in the long term.

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                  • #54
                    We have an interesting situation as it relates to the personal refunds in the stimulus package and I can’t seem to find an answer anywhere yet. We filed our taxes MFJ in 2018 and are filing MFS in 2019 (for student loan IDR / PSLF purposed) - we filed one 2019 personal return since it had a refund and are waiting until the deadline to file the other since it has a tax owed. Anyone know if the system is sophisticated enough to sort through this? I would think that the most fair way would be to obviously get one stimulus refund for the 2019 MFS return that we’ve already filed and then use the 2018 MFJ for the other SSN and then maybe cut that refund figure in half for the other SSN. I recognize that this will essentially be trued up when filing 2020 returns but reading a lot about not paying back the refundable credit that is being paid early so just curious how our situation might be treated / calculated? TIA!

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                    • #55
                      Originally posted by xraygoggles View Post
                      Isn't this the best time to borrow money though? The yield on Treasuries is negative. So, in a sense, investors are paying the US govt to keep their cash safe.

                      Seems like prime opportunity to spend on programs. However, indiscriminate corporate bailouts with no strings attached is not the best way to use it. 2008 redux, ugh.
                      What part is indiscriminate bailouts? Just curious.

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                      • #56
                        Originally posted by Tim View Post

                        What part is indiscriminate bailouts? Just curious.
                        Not sure yet since it hasn't been disbursed, but there's probably a good chance Wall Street will make out like a bandit.

                        Anyways, my point was this is the best time to spend money due to Treasury yields.

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