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Schugg
01-25-2008, 09:05 PM
i really hope this goes through....that will be getting me an extra 1,500 dollars (married + 1 kid), ontop of the 4,250 dollars im getting back just on my taxes. right now my 4250 is all going towards the near 6000 i am in credit card and loan debt, which will leave me with 1750 in the hole. so by time i get the 1500 that will be more than enough to pay the left over off! i love paying off debt! and i dont plan on acquiring anymore...

Bush, House Agree On Tax Refund Plan

The deal provides for tax rebates of up to $600 for individuals and $1,200 for married couples along with tax breaks for business investment.
Thursday, January 24, 2008
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WASHINGTON (Reuters) - President George W. Bush and congressional leaders agreed on Thursday on a $150 billion package of family tax rebates and business incentives meant to ward off a recession in the world's largest economy.

The deal provides for tax rebates of up to $600 for individuals and $1,200 for married couples. Families with children would receive an additional $300 per child.

The deal marked a rare show of cooperation between Bush and the Democratic-led Congress who want to pump money into the softening economy in hopes of countering the blow from a mortgage crisis, credit crunch and a surge in oil prices.

"This agreement was the result of intensive discussions and many phone calls, late-night meetings and the kind of cooperation that some predicted was not possible here in Washington," Bush told reporters.

"This package has the right set of policies and is the right size," he added.

House of Representatives Speaker Nancy Pelosi, House Republican Leader John Boehner and Treasury Secretary Henry Paulson hammered it out after Bush returned from a Middle East trip a week ago and told lawmakers in a conference call he hoped to reach a bipartisan deal.

"It is timely, it is targeted and it is temporary and it was done in record time since our conversation with the president," Pelosi said.

But the California lawmaker suggested that Democrats might propose additional legislation if the stimulus package fails to spur the economy.

"I can't say that I'm totally pleased with the package," Pelosi said. "But ... I do know that it will help stimulate the economy, and if it does not then there will be more to come."

ONE PERCENT OF GDP

The proposal could undergo some changes when it reaches the Senate, where its price tag could climb even higher than the current $150 billion, which is about 1 percent of U.S. gross domestic product.

U.S. Senate Majority Leader Harry Reid said he hoped the plan could be sent to Bush's desk to be signed by mid-February.

But Reid held open the possibility of additions to the bill. "We're going to take another look at it when it comes here (to the Senate)," the Nevada Democrat said.

The plan also includes provisions aimed at shoring up the battered housing market by boosting the size of 'conforming mortgages' to nearly $730,000 that can be financed by housing giants Fannie Mae and Freddie Mac. This would lower the interest rates on these high-cost loans.

The rebate plan would phase out for higher income people -- individuals making more than $75,000 in adjusted gross income (AGI) and married couples making more than $150,000. Paulson said that for every $1,000 over those income levels, the rebates would be reduced by 5 percent.

One issue of contention was whether the rebates would be distributed to just those who paid income taxes or whether low-income people who do not earn enough to owe taxes would also receive cash. Democrats had sought to ensure that the rebates would be given to these workers as well.

Under the package, workers who reported income of at least $3,000 last year and paid no income taxes would be eligible for a check of $300 for individuals and up to $600 for married couples.

The package includes incentives for businesses to make new equipment purchases and other investments. Businesses would be able to immediately deduct 50 percent of the costs.

Furthermore, businesses would be able to write off more of their current losses against previous tax years.

Fears of a U.S. recession prompted a worldwide sell-off in financial markets this week. But expectations of a stimulus package and an emergency interest-rate cut of three-quarters of a percentage point by the Federal Reserve on Tuesday appear to have helped soothe financial markets. U.S. blue chip stocks rallied to close on Thursday nearly 110 points higher.

Tech5
01-25-2008, 09:19 PM
good post, yeah this would be good i think,,,,,,, More money is always good

umairejaz
01-25-2008, 09:29 PM
How would inflation fit into all of this?

Schugg
01-25-2008, 11:01 PM
How would inflation fit into all of this?

what do you mean? reason were getting it cause the economy did so good and we saved alot or something didnt really read into it

umairejaz
01-26-2008, 10:20 AM
what do you mean? reason were getting it cause the economy did so good and we saved alot or something didnt really read into it


the economy did so good, was I sleeping? :thinking:

calmnothing
01-26-2008, 10:33 AM
It's actually the complete opposite. We're broke and indebt. So by going further in debt, and giving people their money back, the thought is that we will spend the money and stimulate the economy.But what usually happens is that we use it to pay back bills, which does nothing for us as a whole.

umairejaz
01-26-2008, 10:36 AM
^depends on the person really but overall I guess you could say that. I know quite a few people on this forum that can teach us alot about the economy, I'm really not one of them. I'm not in any debt either but a full time student so I dont file taxes :(

Crazy Asian
01-26-2008, 11:00 AM
The thing is no one is spending. People arent strapped with cash so they're spending less.The reason why the Gov't is giving money out is to revivie the economy. You know spend a lil here and there that should help the economy. It's an odd thing that I dont get still.

Princess12
01-26-2008, 01:20 PM
I'm kind of confused about the whole refund plan. Is it an instant refund (like a check in the mail) with no catch as long as you fall into the bracket? I was under the impression that individuals making large purchases will receive the refund according to which bracket they fall into. To me, that makes more sense. I'm just like anyone else though... I could always use extra cash. However, I know that I will be putting it towards debts.

Clegger
01-26-2008, 01:24 PM
The deal provides for tax rebates of up to $600 for individuals and $1,200 for married couples. Families with children would receive an additional $300 per child.

^I like how they say OF UP TO $600, that doesn't mean they have to pay anybody $600. They might as well put of up to $1,000,000

Its like a funny sign I saw one time. It was at one of those street shows and the vender had a sign that said "EVERYTHING IS 0-15% OFF!!" I lol'ed and thought REALLY, YA DONT SAY?!? I THINK THAT SALE IS AT EVERY STORE!