2nd Stimulus Check

White House endorsed the 2nd Economic Stimulus Payment.

President Bush Echoes Federal Reserve Chairman’s request For New Government Assistance Plan. Momentum increased Monday, October 20th for a new economic stimulus tax rebate as Federal Reserve Chairman Ben Bernanke favors another stimulus package for Americans. Barack Obama has proposed checks of $1,000 each, paid for with a tax on oil company profits.

Poll Shows 90% Of American Support Second Rebate Check

5.2 Million Checks From First Rebate Still Unclaimed

The IRS announced last week that 5.2 Million Americans have still not claimed their first rebate check. These are generally people who have not yet filed their 2007 tax return, which is necessary to file before receiving a check.

The last day of filing for the next year’s stimulus check was last October 15, 2008 to file the Form 1040A. You can download this form at the IRS website.

If you haven’t received your 1st stimulus check, It is important that taxpayers who are qualified to receive stimulus check to update their present addresses with the IRS until Nov. 28, 2008. Economic stimulus checks must be sent out starting Dec. 31, 2008. The undeliverable economic stimulus checks average $583.

2nd Stimulus Checks (Son of Stimulus)

Son of Stimulus According to congressional Democrats, 2008 may provide a second stimulus aid package to Americans, similar to the $100 billion in economic stimulus checks that were mailed to citizens in spring of this year. These politicians say that they will proceed with their "Son of Stimulus" package this fall. Economists largely support the Stimulus 2 proposal, saying that more funds to taxpayers are needed to bolster already weak manufacturing and retail sectors.

However, the economists surveyed said that the first stimulus package will not wholly succeed because payment recipients put the money into savings, rather than spending it on luxury items or services. Economists point to weak home prices, inflation, and higher energy prices as contributing factors which make the Son of Stimulus package necessary.

While the Son of Stimulus would be popular with taxpayers, it is thought that President Bush would oppose such a package, preferring to wait longer to see the effects of the first stimulus package Early results suggest that about 20% of the recipients spent more after receiving their stimulus checks, but far more put the money into savings.

Some economists say that it will take a major event, such as a big bank or stock market collapse to warrant the second stimulus package in less than a year. The suggested amount of the Son of Stimulus package is 50 to 100 million dollars. Even if the package gets approved by Congress this fall, taxpayers would not likely be spending the extra money until spring of 2009.

What does the Son of Stimulus proposal mean for Americans? The government will be printing more money to fund the economic stimulus. That will further dilute the value of an already-sinking dollar. Since the government has already doled out billions of dollars to save failing financial institutions, the outlook for the dollar seems precarious at best. The real threat to America's prosperity lies not only in the sinking value of its currency, but the very real concern that it will be replaced as the main currency in the world markets. When that happens, expect a sharp decline in the dollar's buying power.