Top US house of representative lawmakers and President Bush agreed to proposed legislation today intended to stimulate the economy. According to the Wall Street Journal, the bill would provide about $100 billion in tax rebates to workers and $40 billion in tax breaks for businesses.
The rebates — which will most likely start at $300 and max out at $600 for individuals and $1200 for couples — reportedly exclude individuals earning at least $75,000 and couples earning $150,000 plus. The deal also includes an additional $300 rebate per child. As for businesses, they will see tax breaks for equipment investment, and in the case of small businesses, greater leeway in writing off expenses.
In exchange for a rebate broadly targeting lower-income Americans, republicans demanded no extra spending. Thus, congressional democrats conceded an increase in food stamps and unemployment benefits.
If the agreement holds up, and you see some unexpected cash, what will you do with it?
Source
Vanessa Bruno
travel — out of the country!
1Nothing ... I won't get one. I wouldn't get it even if I was married and my hubbie didn't work. Bummer for me I guess.
2Where should we go, colleenb?
3so do they go by your gross income or taxable income???
4travel!!!! Italy here I come.
5It will go straight into savings.
6Savings.
7definitely savings.
8I'd love to say I'll save it, but let's face it, I'm gonna shop with that cash
9seriously...gross income or taxable??? I am right on the cusp of being cut off from a rebate if it goes by gross income. I did read on yahoo news that the rebates would be less the more you make. ANybody know for sure?? This could REALLY come in handy for our IVF.
10Actually, I want to go to Sweden next year so I might put it towards that. Unless, I run off to France!
11Great! I'll be celebrating with a bottle of 2006 La Mission-Haut-Brion.
12Into my wedding account it goes!
13Well, you know me, I'm not about to go and buy anything I don't need or haven't already been saving up to buy. My check will go in to savings for a few months and will be put toward my honeymoon later this year!
14I'm hearing gross income, but the details are still being negotiated. I'll let you know if I hear otherwise!
15The whole point of the tax rebates are to stimulate the US economy by putting money back into the hands of US Citizens to put back into the US.
While traveling sounds nice, it takes more money out of the US.
Of course we are all free to do as we please, but if you care about your country, it economy and it's future: Spend it in the United States on something made in the United States.
When people of this country get back into using American made products, that's when we'll really see more jobs created and our economy do well.
Happy spending!
16i would be excited for the idea if i made just a little bit more - i'm RIGHT UNDER what the cut off point it - and it's upsetting. it's like i'm stuck in the middle cause i make too much to get aid - yet i don't make enough to reap the benefits
17ok i re read it all and for couples its something like $174,000 and at some point they start giving a "portion" of the rebate. So, the more you make the less you get and if couples make over $174,000 they get nothing. See, my income gets the maximum tax taken out every month...something like 25-28%, which takes quite a bit out of my actual income. Although I do get a pretty good refund usually...this extra would come in handy for our in vitro procedure..which insurance does not cover completely of course. Thats the only reason I was asking.
18and do they consider a child as under 18 or 17??? With the child tax credit its a child under 17.
19"if you care about your country, it economy and it's future: Spend it in the United States on something made in the United States"
I agree 100%!! This plan is for people to reinvest in the economy.
I will probably just put it towards bills and my credit cards. I don't like to spend "surprise money" on silly things. I feel like it is bad money karma!
20The highest federal income tax percentage is 35% ... not 25-28%.
21Savvy, what does this mean for single people without children. I read the article about this and watched CNN today but no one mentioned single people without children. Does that mean there is not money for the single and childless.
22I'll probably use 90 percent for paying down a credit card bill, and the other will be savings.
bellaressa - i'm a single person w/out a child, the way i understand is that if our salary is less than $75,000 (filing single only) then we will get a $600 rebate...an additional $300 is tacked on per kid i think. Couples receive up to $1200 if their income is less than $150,000 (or something close to that)
23I'll be paying off the car I bought!
24I'm not Savvy, bellaressa, and she might know better, but it's my understanding that kids just add bonuses to the rebate--I heard $300 for each, but the single and kid-free still get money too.
25We'll probably use the money to do some work on our house. There's always something that needs to be done to our home. That way, we won't waste the money, but it'll go back into the economy. Maybe it'll even increase the value of our home.
26help pay off our wedding credit card
27Poor Pelosi, her face is drooping again. Maybe those eyebrows will reach her hairline after the next face lift.
28Citizen, you're right on the money! I'll be doing a breakdown of the stimulus package next week to clear up any confusion.
29That would be amazing...
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