Quote Originally Posted by Ginevive View Post
I don't see why people think that it is such a dismal thing to pay off debt.
The main reason is because debt payments don't do anything to stimulate the economy (in fact, much of this money will head directly out of the US economy), and that's supposedly the whole point. It's the responsible thing to do, but it's of the day-late dollar-short variety, in that we wouldn't need stimulation if we were all being responsible in the first place.

Quote Originally Posted by Ginevive View Post
But what is this about it having to be paid back next year? if so, I will send it right back.
You won't have to pay anything back next year, since this money is technically an overpayment you've already made.

How this incentive thing works is as follows:

1) Congress critters decide they want to see more spending to stimulate the economy, so they lower the tax rate on the lower tax brackets.

2) The lower tax rate is then pro-rated based on how much has been paid in this year already. People who are below the bracket get nothing, those in the bracket get a % based on their payments this year, those in higher brackets get the full amount of the adjustment (those in the highest brackets are a wash, since their tax liability is not going to be drastically effected enough to matter).

You can, of course, send your check right back and give the government an interest-free loan, if you like, but it makes more sense for you to invest that money, get some return on it (or pay debt and avoid the associated negative-returns).

So, as for the "it won't effect your refund next year"...lies with numbers...always lies with numbers.