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May 24
2009
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I am just a little curious what you all think.....Posted by: Jesse Lee in Business on May 24, 2009 Tagged in: Antelope Valley
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I am a commuter, like many Antelope Valley residents. I travel to make money but travel back because the cost of living is much more affordable. There is less smog, less traffic and less violence. And in these economically hard times, I also try my hardest to cut corners. Both Palmdale and Lancaster are currently offering programs to help promote commerce here by rewarding local spenders. I am extremely willing to spend my money here. I am fully aware of the fact that the money helps support local police and fire fighters. But I've heard a couple rumors that I find a little discouraging. If anyone could help explain them to me I would greatly appreciate it.
Palmdale's website says that the second phase of their BEST program started on May 12th. In theory, the thought of getting a free $30 gift card sounds pretty cool. But why does the $300 you spend only need to be on taxable items? Why are “rent, mortgage, medical bills, dentist bills and similar services” exempt? Shouldn't all businesses be allowed to benefit from the program, not just the ones that may benefit the city of Palmdale? I am really intrigued by this! And then, to top it off, the $30 “gift card” (a term I use loosely) can only be spent in Palmdale. Why? Isn't it a Visa card? I am really baffled by that and I can't imagine that being 100% legal.
Lancaster, on the other hand, rewards any $300 being spent in their city. It doesn't say anywhere on their website that it must be on taxable items. They also reward you with $30 gift cards. And instead of giving Visa cards that you have to pledge will be spent locally, you receive a gift card that can be spent at participating businesses. For me, that's the best part. Businesses are encouraged to sing up for the program. Local spenders and businesses are encouraged to work together for the greater good.
Now, I live in Palmdale and I haven't been keeping track of my receipts. Honestly, I don't think I'm going to. I also shop in Lancaster and the prospect of being rewarded for all the money I spend sounds worth it. And the participating places that will accept my $30 gift cards are businesses I would gladly spend my money at.
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written by amy, May 26, 2009
i didn't know about the gift card programs. i'm actually going to look into them now because any little bit helps rt now. thx
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written by Steve Hofbauer, June 23, 2009
The rationale behind the taxable sales qualification is really quite simple. The city, which is supplying the card, gets a cut of the sales tax, and uses those funds to bankroll the BEST cards through the Economic Development Department. Our VISA can be used at any store, not just those that are registered. BTW, you are right, you actually could use it outside Palmdale, but why would you!
Steve
Steve
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written by Jesse Lee, June 25, 2009
True, it can be used at any store. But if it is only on taxable items, not every store can be involved. Lancaster on the other hand allowed any business to be involved. By letting the business sign up to the program, it helped guarantee the money would be spent locally and didn't restrict the items that could be bought.
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written by Steve Hofbauer, June 25, 2009
Yes, they allowed any business to participate by registering, but there was a somewhat slow and mediocre response from the business community. With their requiremement to buy/use only at pre-registerd businesses, your choices were actually more restricted. In addition, you had to wait week to get their card, as they weren't ready when the program was rolled out.
We wanted to make it as broad as possible, and as somple an seamless for the shopper, but ensure a return to the city on the expenditure thru the sales tax. There was quite a bit of discussion and we felt we learned from Lancasters experience and improved on it, and the residents have been thrilled to get them. The VISA card was more secure, less prone to fraud, and allowed the economic development department to track where the cards were spent to determine local leakage. It really worked out excellant, and all the cards were distributed as of a couple weeks ago.
Steve
We wanted to make it as broad as possible, and as somple an seamless for the shopper, but ensure a return to the city on the expenditure thru the sales tax. There was quite a bit of discussion and we felt we learned from Lancasters experience and improved on it, and the residents have been thrilled to get them. The VISA card was more secure, less prone to fraud, and allowed the economic development department to track where the cards were spent to determine local leakage. It really worked out excellant, and all the cards were distributed as of a couple weeks ago.
Steve
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written by Carlden, July 29, 2009
The entire purpose is to support local businesses. Paying your rent, medical bills, etc is supporting yourself. Yes, money goes to people, but typically for something for yourself. Supporting local businesses goes a long way & a $30 gift card is a great incentive. People who are looking to spend money on their mortgages are missing the point of the program and are trying to get rewarded for living instead of supporting local businesses.
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written by Art, August 01, 2009
What are your thoughts on the cash for clunkers program? I think it's a joke personally that taxpayers are helping people buy cars. I heard it best from a representative in another state who said "What's next? Cash for cluckers? A program to help people buy more chicken?!" I know this is off topic, but you raise a good point regarding people living off of stimulus moneys.
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written by Jesse Lee, August 02, 2009
I think the plan was stupid and wasteful. I realize in theory it is supposed to stimulate the economy but it's a double edged sword. Hording and saving money doesn't help but spending it to simply get rid of products that were over produced just doesn't make sense. We've all learned valuable lessons here. I feel the same way about the whole housing market. I do not think people deserve to be bailed out of their mortgages. If you didn't know what "adjustable" meant, well, too bad. We need to learn to not live beyond our means. As a whole this country has abused the richness of opportunity with selfishness. Thank you for the feedback everyone! I really appreciate all of this. It is a very important topic that must be addressed.
Stimulus money would be better spent improving what we do have instead of providing us with what we don't need!
Stimulus money would be better spent improving what we do have instead of providing us with what we don't need!
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