Do as I say, not as I do!

So the big, humongous government stimulus package plan has finally made it through the House and Senate and has been edited with compromises on both sides. A final version is expected to be on President Obama's desk by Monday morning for him to sign into law. I saw a few curious things that were cut from the final draft. The big tax cut stimulus money for everyday Americans was cut from $500 to $400 per person. Remember this money is not going to come to you in the form of a check (like last year's stimulus), but through payroll tax deductions. So now, instead of getting an extra $20 per week, you will get an extra $13. Enough to buy that 6-pack or maybe a combo meal for two at your local McDonald's! It is surely money that will be spent instead of saved, and that's why you will get your take this way instead of the $400 check. You see, the government learned, after last year, that only 17% of people who received their $600 check actually spent it on something to stimulate the economy. The rest used the money to pay down debt or put it in their savings accounts. Now the big question is, how much will these little $13 weekly spending sprees actually help the economy? I think it may help the fast food and quick trip business, perhaps Starbucks may get a few more takers. Only time will tell. Another item that didn't make the final draft was the new car purchase provision of allowing interest on new car payments to be deductible on your income taxes. They did allow for a sales tax exemption but that's it. Talk about throwing a bone to the auto industry. How many people will rush out to buy a new car on this news? It's all on the Big 3 (actually just GM and Chrysler) to sharpen their pencils and show their new business plans to President Obama by March 1st. The clock is ticking. Americans are buying things, although just not as much as before this recession started. I read where spending on Valentine's Day (future blog) is down an average of $20 or so from last year. So sweethearts across this land will still get flowers and chocolates, just not as nice as last year! The point today is this, the government wants us to spend money to help get us out of this recession, but they are going to give us less money to do it. And although it's good for you as an individual to spend less and save more, it's not good for all Americans to do the same! Hey that reminds me, I need to stop by Walgreen's and pick up a card for my wife today!