Posted on 02/13/2008 2:53:59 PM PST by BradtotheBone
WASHINGTON — President Bush signed legislation today to send $300 to $1,200 rebate checks to millions of Americans as a "booster shot" for the economy.
Rebates are to go out beginning in May to taxpayers and low-income people, including seniors living off of Social Security and veterans who depend on disability checks. Businesses would get tax breaks for investing in new plants and equipment.
"I know a lot of Americans are concerned about our economic future," Bush said. "Our overall economy has grown for six straight years, but that growth has clearly slowed."
Several dozen members of Congress, including House Speaker Nancy Pelosi, stood on the stage behind Bush as he signed a bill to fend off a possible recession. He said the stimulus package was achieved after he talked with leaders of Congress in January about "whether or not we could come together to provide a booster shot for our economy — a package that is robust, temporary, and puts money back into the hands of American workers and businesses."
Most taxpayers will receive a check of up to $600 for individuals and $1,200 for couples from the Internal Revenue Service, with an additional $300 per child. People earning at least $3,000 and those who owe little or no taxes would get $300 for singles, $600 for couples. Those making more than $75,000 and couples with income exceeding $150,000 are to get smaller rebates — $50 less per $1,000 they make over those thresholds.
"Americans struggling with the high cost of energy, groceries and health care will soon receive relief, and our economy will get a timely, targeted, and temporary boost — thanks to our bipartisan stimulus package," Pelosi said. "This package gets money into the hands of Americans struggling to make ends meet, helps families with children, cuts taxes for small businesses that will create new jobs and stimulates our slowing economy."
Economic analysts generally believe the $168 billion package Bush signed will help prevent the current downturn from ballooning into a crisis. But if the rebates don't spur a consumer spending spree strong enough to cure what ails the economy, Congress is ready to throw more money at the problem. Bush said the measure was "large enough to have an impact."
Democrats and Republicans who put aside deep differences to craft the plan and rush it to enactment joined the president at the White House for the signing ceremony in the East Room. The package is designed in part to inoculate lawmakers from voter blame should the economy continue to lag as the November elections bear down.
Congressional leaders already are considering more economic rescue measures that could include transportation spending, unemployment aid and measures to address the housing crunch that's at the root of the current economic doldrums.
In the meantime, economists are debating how effective the rebates will be, with critics arguing that debt-burdened consumers will use the money to pay bills rather than spending the checks and spurring growth.
An Associated Press-Ipsos poll found that only 19 percent of those surveyed said they planned to spend their rebate checks. Forty-five percent said they would pay bills, while 32 percent said they planned to invest the money.
The last time the government sent out rebates, in 2003, recipients spent a little less than a third in the first six months, and about two-thirds within the first year, according to findings by the University of Michigan Survey of Consumers, cited by congressional tax analysts. After rebates were sent out in 2001, just 22 percent said they would mostly spend them — rather than saving the money or using it to pay off debt — and only one-third of the rebate was spent in the short run, according to the same study.
I would much rather just get a break on my income taxes. If I receive the $600 election-year bribe, I figure that it will pay less than 25% of my property taxes for 2008. Take it out of one pocket, put it into the other, then take it out again to pay a different set of bureaucrats. Looks like lose/lose to me. And, has anybody asked if we have to pay taxes on it next year?
Sorry for multiple posts. my posting page is giving me a “Proxy Server Error” message. sigh...
According to the WSJ, no. The article was in the Personal Finance section today. The IRS plans to post info soon.
Depends on what city you are in. 150k in NYC is definitately middle class. 150k here in NC is pushing the upper class. That said, it’s silly that people paying the most in taxes do not get their fair share of rebate money as well especially since some 30 million people are getting a rebate that paid nothing.
For the majority of those effected (around 90 million), it is a tax cut for 1 year. For a large minority (around 30 million), it is simply re-distribution of wealth. We have 1 socialist party in America—1 branch is just more socialist than the other.
That includes couples which would limit you to 75k each.
The original bill Bush wanted was just a “prebate” 1 year tax cut on the first $8k of income made per person for people who paid taxes. Unfortunately, it was deluted into a rebate for anyone except the upper middle class and the upper class.
If you actually made money, it IS a tax cut. THe “rebate” is really a prebate on a 1 year tax cut on the first $6k ($12k for couples) of income a person/couple makes. If you are elder and retired or made too little to pay federal income taxes, it is just a pure rebate. No you don’t have to pay taxes on it next year as it is a tax cut for people who make money and a ‘free’ rebate to those who don’t.
I was just using your example but yes.
What a bunch of incompetent boobs!
“Stimulate” the economy by handouts. And once again, soak the “rich” by reducing rebates for those making over $75-$150K. Idiots!!
Cut taxes, that’s the only thing that will really stimulate the economy.
Great idea! Who couldn’t use another 1911A1?
Well, my wife wants a divorce, so my half of this Chinese financed rebate WILL come in handy. And I might want to buy a couple cases of nice red wine. Might need that, ya know. ;-)
Unfreaking real.
I will buy another gun with my “rebate”.
Uh...would have saved a ton of money if you’d just let us keep what was OURS in the first place.
Has anyone been able to determine if this is pulling ahead the “refund” for 2007 tax year or is this just a “temporary tax reduction” that will not be tax due in early 2008? For the longest time I was reading that this is a prebate on next years filing, however that terminology seems to have vanished without a word of clarification.
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