On Wednesday 13 February, President George W. Bush signed the Economic Stimulus Act of 2008, adding an estimated $152 billion to this year's deficit, mostly by giving out one-time tax rebates that are typically $300 to $600 per person. The amount added to this year's deficit is about $500 per person or about $2,000 for a family of four.
On Wednesday 26 March, citizen Martin L. Buchanan walked into a post office in Denver, Colorado. He mailed a check for $600 to the United States Treasury, returning his rebate. Buchanan made this statement to the press:
"Total federal government liabilities are now more than $52 trillion.
Every dollar of these tax rebates is borrowed, often borrowed from foreign governments.
Each borrowed dollar today and its compounded interest tomorrow
becomes many dollars to be repaid by our grandchildren.
Getting us all deeper into debt stimulates nothing and fixes nothing.
We have to stop stealing from our grandchildren.
That is why I'm sending $600 to the U.S. Treasury to repay my rebate,
so our grandchildren do not have to."
Buchanan has set up GiveBackTheRebate.org, a web site to encourage other citizens to return their rebates if they can afford it.
This simple web site suggests that other Americans may also want to return their rebates to the government. It links to relevant government information, books, and organizations of interest. This site does not carry any paid advertising or solicit any donations.
Please do not give back your rebate if you really need it! Tens of millions of Americans are struggling financially. If you are behind on your bills or struggling to make ends meet, I'm not suggesting that you give back your rebate. If you can afford it and agree that we should not put our grandchildren deeper into debt, then you may want to give back your rebate as well.
You can verify this information at http://fms.treas.gov/faq/moretopics_gifts.html.
Send a check or money order payable to United States Treasury to:
Gifts to the United States
U.S. Department of the Treasury
Credit Accounting Branch
3700 East-West Highway, Room 6D17
Hyattsville, MD 20782
For an authoritative description of the rebates, see the Economic Stimulus Payments Information Center maintained by the IRS.
An individual with $3,000 or more in taxable income and AGI (adjusted gross income) of up to $75,000 in 2007 will receive $600 if their tax liability is at least $600, the amount of their tax liability if their tax liability is at least $300, and $300 even if their tax liability is less.
A couple filing jointly with $3,000 or more in taxable income and AGI (adjusted gross income) of up to $150,000 in 2007 will receive $1,200 if their tax liability is at least $1,200, the amount of their tax liability if their tax liability is at least $600, and $600 even if their tax liability is less.
For each child claimed on your tax return you receive an additional $300 rebate.
The rebates are phased out for high-income taxpayers, above $75,000 for an individual or $150,000 for a couple filing jointly, reducing rebates by five cents for each dollar of AGI over those levels.
There are special rebate provisions for Social Security recipients, disabled veterans, Railroad Retirement recipients, and some low-wage workers.
Rebates are calculated by the IRS using information on your 2007 tax return. You need to file a 2007 tax return to get your rebate. Some people who normally don't file tax returns should file returns for 2007 so that they can get their rebates.
Text of the Economic Stimulus Act of 2008, the legislation creating the rebates (economic stimulus payments).
Government Accountability Office (GAO) projections of future federal spending vs. revenue assuming that current federal policies continue and showing runaway federal deficits in our future.
Budget of the United States Government Fiscal Year 2009 provides online access to all major federal budget documents, as large PDF files, so only recommended if you have a fast Internet connection and a strong desire for details.
The Coming Generational Storm: What You Need to Know About America's Economic Future (2005) provides demographic and economic details about how the retirement of the baby boom generation will push the federal budget over a cliff.
Running on Empty: How the Democratic and Republican Parties are Bankrupting Our Future and What Americans Can Do About It (2004) describes how both major political parties have contributed to our federal budget crisis.
To Save America: How to Prevent Our Coming Federal Bankruptcy (2007) describes the federal budget crisis in an easy to read format and describes how to permanently solve that crisis.
The Cato Institute is a well established national think tank that has analyzed every aspect of federal spending and how to reduce that spending.
Citizens Against Government Waste works to expose and reduce wasteful government spending.
The Concord Coalition is a nationwide grassroots organization advocating responsible fiscal policy.
Martin L. Buchanan is the author of To Save America: How to Prevent Our Coming Federal Bankruptcy. He is a U.S. Army and Army National Guard veteran, a professional writer and software developer, and has lived in Denver, Colorado since 2004. Buchanan is the Libertarian Party's 2008 candidate for U.S. Congress in Colorado's First Congressional District. Send email to Martin L. Buchanan.
Give Back the Rebate was the cover story, "Return to Sender" by Peter Marcus, in The Denver Daily News for Thursday 27 March 2008. This story is no longer on their web site.