The Democratic and Republican leaders in Congress leaders have completed a deal with George W on an economic stimulus package that would, damn it, provide for rebate checks that could be sent out as early as June.
It look like individuals who actually pay income taxes will be getting up to $600, working couples $1,200 and couples with children an additional $300 per child. Workers who make at least $3,000 but don't pay taxes would get $300 rebates. The rebates would be limited to individuals whose income is $75,000 or less and working couples with incomes $150,000 or less.
The cost of these damned rebate checks is estimated to be about $100 Million (plus, I expect, the costs the IRS incurs to actually issue and mail the checks).
It look like individuals who actually pay income taxes will be getting up to $600, working couples $1,200 and couples with children an additional $300 per child. Workers who make at least $3,000 but don't pay taxes would get $300 rebates. The rebates would be limited to individuals whose income is $75,000 or less and working couples with incomes $150,000 or less.
The cost of these damned rebate checks is estimated to be about $100 Million (plus, I expect, the costs the IRS incurs to actually issue and mail the checks).
10 comments:
Is the income level based on 06 taxes or 07's......
This is a $1200 question :)
Will we be able to get refund anticipation loans for the June rebate checks? That way we could get the money earlier - like H&R Block Emerald Advance?
any idea if dependents are eligible for a rebate? i'm a dependent college student who paid income tax for 2007. I made about $17,000.
I'm sure this will provide at least a short term stimulus to the economy (LT effects are less likely, in my opinion). Problem is, it does almost nothing to address the underlying problems our economy faces -- if a global "de-leveraging" continues, there will be no way to avoid a certain amount of pain.
The most likely outcome of a credit contraction would be a period of reduced consumer spending, which would undoubtedly cause a recession. As asset prices come down, this would almost certainly be a deflationary period.
But deflation is the absolute worst thing for people who are loaded with debt -- the real amount of the debt actually increases. The Fed and the US Gov't will do ANYTHING to prevent a deflationary slump. The best tool for this: destroy the value of the US Dollar. This latest stimulus package will literally be creating money out of thin air, since the money has to be borrowed by the Treasury.
Anon-
I certainly hope not!
RALs are bad!
TWTP
Elin-
I doubt it - as you parents my be getting an extra $300.00 for you.
Once the bill is signed and sealed I will post an analysis with all the details.
TWTP
The Cost would be 100 BILLION with a big capital B
Robert, when we got a "rebate check" in 2001 the money had to be paid back in the form of my tax refund being REDUCED by $600 that year. Basically, it was just a loan. Thankfully, I didn't owe money that year, or else I would have had to scramble to make up the deficit. My question is: Will the 2008 "rebate" be the same? Is this just a loan against my withholdings? If so, I'll just hang onto it until tax-time, because with that huge amount (my family stands to get about $2,500) it could really put me in a bind when it comes time to pay my taxes. Thanks!
Jerry G -
Oops - my bad! A "slip of the finger".
TWTP
Angela-
It appears that this new rebate will NOT be an "advance" against 2008 taxes, as the 2001 rebates were an advance against the 2001 "rate reduction".
My colleague THE TAX GIRL reports, "In the final version of the 2008 bill, approved by the House but not the Senate, the tax rebates will not act as tax credits. They are simply outright payments to taxpayers, not offsets. This means that money is coming out of the Treasury which will not be replaced."
Good news for you - but bad news for the country!
Oi vey!
TWTP
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