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Jan
Economic Stimulus Plan Announced
The White House and House of Representatives announced an “Economic Stimulus” package today. Here is a quick overview from the WSJ.
-Tax rebates: Checks of at least $300 for almost everyone earning a paycheck, including low-income earners who make too little to pay income taxes, so long as they earned at least $3,000 in 2007. Families with children would receive an additional $300 per child, while those paying income taxes could receive higher rebates. The full rebate would be limited to individuals earning $75,000 or less and couples with incomes of $150,000 or less, but a partial rebate would go to individuals earning up to $87,000 and couples earning up to $174,000.
-Business tax write-offs:Spurring business investments with so-called bonus depreciation and more generous expensing rules.
-Housing rescue: Raising the limit on Federal Housing Administration loans and boosting the cap on loans that Fannie Mae and Freddie Mac
Regardless of the fact of whether this will work or not, overall it is a decent compromise. Still, people that don’t pay taxes get a rebate (but it is less than the full one). However, those that are making decent money are penalized, as the rebate drops off at $75,000 ($150,000 per couple) and completely is eliminated at $87,000 ($174,000 for couples). Once again, those that sacrificed early for high paying careers are penalized for being “rich.” At least they were able to remove the unemployment and food stamp bonuses.
The rapid negotiations were unusual in a city that last year was gridlocked with partisan bickering. Both sides agreed to drop items they were pushing: Democrats agreed to exclude food stamps and unemployment insurance; Republicans agreed the rebates could go to people who didn’t pay income taxes.
What amazes me is that those against tax cuts agree that rebates and tax decreases are helpful to the economy when we have an economic slowdown. So why in the world do they not think tax cuts help a good economy?
[...] The Roundtable- Regardless of the fact of whether this will work or not, overall it is a decent compromise. Still, people that don’t pay taxes get a rebate (but it is less than the full one). [...]
January 24th, 2008 at 7:39 pm[...] many of you are aware, Congress is debating rebates to “stimulate” the economy. While this may have a minor effect, I do not think it will do much good. However, THIS is [...]
February 3rd, 2008 at 12:38 pm