Here Comes the Tax Rebate Check! President Bush is Opening Up the Wallet to Americans

The check's in the mail. At least that is what President Bush and congress is telling the American people. According to reports, the stimulus plan is set to send $150 million out to Americans. The plan is slightly smaller than what President Bush initially proposed, but it will be putting $600 for individuals and $1,200 for couples back into your wallet.

The proposal is meant for mostly the middle class and poor though, so if you make over $80,000 as an individual or $150,000 as a couple, don't necessarily expect a check. There will also be extra $300 for each child. This was put together pretty quickly to hopefully get the checks in Americans hands as soon as possible. That ASAP will most likely mean May or June.

The biggest question on the table though is what effect, if any, will this have on the economy? Is this an election year stunt? Unfortunately, for most families that are struggling with home prices, rising interest rates, rising gas prices, and higher unemployment, $1,200 is not going to go very far. Especially, for those in high cost areas like Southern California where median home prices are still at $430,000 and gas prices are inching towards $4 a gallon. Even the price of milk is $4.

This stimulus seems to be a reactive decision rather than a proactive one. Although it will help make a dent in debt, will it really do anything for the long haul? No. That money is only a band-aid on a cut that needs stitches. It will cover the wound for a while, but sooner or later, it must be treated properly.

The number one thing that needs to be handled is the housing crisis. Why don't we focus on helping homeowners with their interest rates? The fall of the housing market is what has created all of this turmoil. How is $600 going to help pay a $2,000 mortgage? If we can address the housing crisis, this would free up a lot more money this year and years to come.

The falling interest rates will allow more people to afford cars, homes, and other big ticket items that drive this economy. The money from this stimulus will not encourage big ticket purchases. It will only encourage people to pay for groceries, fill their gas tanks, and survive for another few months. Until we get a handle on the housing crisis, don't expect any amount of stimulus to make more than a dent. In fact, it might just make people more frustrated because their "stimulus" will be more of a speed bump in their decent into debt.