Posted on 01/24/2008 7:22:15 AM PST by AbeKrieger
WASHINGTON (AP) - Democratic and Republican congressional leaders reached a tentative deal Thursday on tax rebates of $300 to $1,200 per family and business tax cuts to jolt the slumping economy. Congressional officials close to the negotiations said House Speaker Nancy Pelosi and Republican Leader John Boehner of Ohio reached agreement in principle in a telephone call Thursday morning.
The officials, speaking on condition of anonymity, said the two wanted key members of their parties to sign off on the accord before any announcement.
The accord came as the White House said Thursday an agreement was imminent.
Pelosi, D-Calif., agreed to drop increases in food stamp and unemployment benefits during a Wednesday meeting in exchange for gaining rebates of at least $300 for almost everyone earning a paycheck, including low-income earners who make too little to pay income taxes.
Families with children would receive an additional $300 per child, subject to an overall cap of perhaps $1,200, according to a senior House aide who outlined the deal on condition of anonymity in advance of formal adoption of the whole package. Rebates would go to people earning below a certain income cap, likely individuals earning $75,000 or less and couples with incomes of $150,000 or less.
Did I take a wrong turn on the ‘net? This month has been very wierd here.
Last week I heard people ——ing and moaning because Mitt proposed tax cuts - the article of course was the MSM usual way of talking about tax cuts as if they were government spending, and yes Mitt’s proposal had already been made by FRed earlier. But hey it was Mitt so everyone piled on to bash. (Note: I am/was a FRedhead, but a tax cut is a tax cut no matter who signs the thing).
Today the deal is: the 10% tax bracket is repealed for a majority of Americans for one year.
Yes, the Dims get their little socialism in there too, with the arbitrary stupid ‘cap’ on earnings and the giveaway of $0-$300 to the people who didn’t earn enough to pay $300 in fed tax.
That’s what happens when Dims get the majority. Maybe this year FReepers will not just stay home and let the Dims win.
However, it’s still a tax cut. As I asked in the other thread, we do still like tax cuts here, right?
I would imagine there would be a few who are trying to make their lives better. And I would be willing to bet that if Schumer, Clinton Inc., Rangle, Reid, and Pelosi knew who they were, they’d put a disqualifier in the legislation.
Q: When is a tax cut not a tax cut?
A: When it is an advance on your tax return.
Until I know that this is not the case, this is simply money I’ll need to repay in April of ‘09.
“I thought it was $800 too. What the hell happened????”
Democrats happened
How nice.
It might interest Congress to know I’m a legal assistant. Not a lawyer, a corporate executive, etc. An effing LEGAL ASSISTANT. And I’m placed in the same category with the single high power Wall Street types.
Thanks, Congress.
Pelosi may find herself in a little hot water over the ceiling for taxpayers. Many, many middle income people in her district make over $75,000/$150,000 because the cost of living is so high. She has effectively shut out many white collar workers in the San Francisco Bay Area.
I wonder if an email to Ellen (barf) Tauscher will mean anything.
There is only one good thing about this plan: it will take money away from government pork projects and put it back into the taxpayer’s pocket. That’s it.
On the minue side, the “bipartisan” plan is really a simple socialist wealth transfer from those of us who make $150k+ per year (barely middle class for a 2-income family in the SF area) to those at the bottom of the food chain.
What is really amazing is the support for a Keynesian stimulus plan. After Paul Volker, Alan Greenspan and Ronald Reagan (not to mention Robert Rubin) it appeared that Keynes had been so discredited that he was relegated to the dust heap of history. But apparently not.
This plan will do zero to stimulate the economy. People defaulting on subprime loans aren’t going to get out of trouble with a rebate that will at best assist with one mortgage payment. Most people are up to their ears in debt so the money will simply go from original taxpayers -> US treasury -> citizens (maybe illegals, too, if they paid taxes) -> banks.
Am I stale because I am not going to get a refund despite paying $30K+ in federal taxes last year? You bet.
How far we have come from RR, who believed that lowering the tax rate for everyone was the best way to stimulate the economy. Bush 2001 got it right; Bush 2008 caved to the socialists.
http://news.yahoo.com/s/ap/20080124/ap_on_go_co/economy_stimulus
Don’t do that. You may need it in the not-too-distant future.
On the plus side, at least we now know exactly what the federal government's definition of "rich" is.
Seriously, I'm holding off my order for the 460 until my 2nd contract funds. That should be next week. If it fails to fund, my salary is only 1/2 covered for the year. Investment in stainless steel S&W products has been pretty decent. The 4" 686+ purchased in 2000 for $437 street price sells in the low $900's today. As for needing it in the not too distant future...I really just need to stock up on ammo (or find time for reloading). There's plenty of hardware around here for launching projectiles.
As expected, the people who have paid the MOST in income taxes (like hubby and me) get ZIP ZERO NADA. People who paid ZERO taxes, however, get a rebate.
It’s socialist income redistribution, plain and simple.
From your taxes, you magnanimous son of a gun. ;~))
Maybe I am just stupid, but if one does not pay taxes on 3K, do these same people always file taxes? Where does one go find these people to give them “my money”...oh...rebates.
We will get nothing, we are rich you know, but my college age son with the tuition being paid by mom and dad will get money back because he “paid” taxes on his part time bar job??!!?
I am sick.
“A: When it is an advance on your tax return.
Until I know that this is not the case, this is simply money I’ll need to repay in April of ‘09.”
Maybe I’ve totally misread this but I thought this was a removal of the 10% tax bracket for the 2008 tax year.
You’re right about it being advanced so that instead of receiving the $ as a reduction of taxes filed April ‘09 you’d receive it this year.
That’s fine with me as FedGov is already busily taking $ out of everyone’s paychecks now that isn’t technically due until April ‘09. If you actually paid the IRS in April ‘09 in one large sum for the monies you earned in all of 2008 I think your point would carry more weight.
I saw after I posted that you and yours are well armed. :)
I’d never owned or shot a handgun before in my life. About 6 weeks ago I bought a 9mm. Just a little one. I’m learning how to shoot it. Went to the target range last weekend. I was so nervous!! :)
Is the cap based on gross income or adjusted gross?
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