President Bush and leaders of the House of Representatives agreed yesterday-January 24- to deliver tax rebate checks to tens of millions of low-wage and middle-income households within weeks. The purpose is for struggling families to be encouraged to spend the money quickly to stimulate the nation’s economy.
The plan was unveiled Friday, January 18. It was introduced as individuals receiving one-time checks for $800 and couples would receive $1600 to boost consumer spending.
“10’s of millions of Americans will have a check in the mail; they really will,” said Nancy Pelosi, Speaker of the House-Democrat.
Its official, the famous “$150 Billion Economic Stimulus Package,” has been the ‘break room’ conversation, since early as Wednesday morning. This plan came together with great speed in just days under intense negotiations between House leaders and the Treasury Secretary. After these negotiations, Congress revised the rebate - individuals would receive $600, $1200 for working couples, plus $300 per child of individuals and couples without limits. Full rebate would be limited to individuals who make less than $75,000 and couples who make less than $150,000. Individuals who earned at least $3,000 in 2007 would receive $300. Partial rebates would go to individuals earning up to $87,000 and couples earning up to $174,000; for those with children, the caps would be higher If all goes well in Congress, the distribution would begin as early as May 2008.
For businesses, there are tax breaks to encourage job creation. New regulations are intended to make it easier for homeowners to refinance to make conventional mortgages more available. This is to address the Subprime Mortgage problem. House leaders are planning to pass the legislation as early as next week, however, it still has to go to the Senate. Some Senate democrats are pressing for a bigger package which could slow up this process.
This act is not precedented. Following the September 11 attack, Bush’s stimulus plan included rebate checks of either $300 or $600. This plan saw that recipients spent two-thirds of their refund within six months according to a study quoted in an Associated Press Article.
Those are the basic facts, but here are the opinions:
“Too Little, Too Late?” Many are expressing that this plan is not enough to actually put a ‘dent’ in the economic boost. The national deficit is a parallel to the financial state of the average low-and middle class household. IN DEBT. Over 50% of Americans will use the money to pay bills! And how can an individual with no children decrease debt with $600.
An article by Glenn Curtis explains that due to the housing market being in such a slump, gas, and milk prices being so high this TAX RELIEF may not have such an impact.
...And what those who owe on taxes? Will they receive a rebate check?
You know the facts that have developed so far, now express yourself-How will you spend your rebate?