Thursday, January 24, 2008

So, How Much Money Will My ‘Rebate’ Be?

The House leadership has come to a compromise on the economic stimulation package and held a join press conference with the Speaker, The House Minority Leader and the Sec. of the Treasury. They had a bit of a love fest, and that is great, but how much will we get?

Not to long after the press conference I received a press release from Minority Leader, Rep. John Boehner’s office. Below is part of that release.


Summary of the Economic Growth Package Agreement
in Principle

I. Tax Relief for American Families:

Rebate Checks: The economic growth package will include rebate checks in the sum of two separate calculations, with an overall phase-out for those with adjusted gross incomes above $75,000 for a single taxpayer and $150,000 for married couples. Rebate checks will include a base amount determined by the greater of two options: (a) Income tax paid in 2007, with a maximum of $600 for a single taxpayer and $1,200 for married couples; or (b) $300 for an individual and $600 for a married couple, provided the individual or couple earned income of at least $3,000 in 2007.

A children’s bonus also will be included in the rebate check calculation. Anyone qualifying for the base amount also receives an additional $300 per child, with no cap on the number of children.

II. Tax Relief for Employers:

Bonus Depreciation: The economic growth package will provide for a 50 percent bonus deduction on new equipment in the year it is placed in service, with certain exceptions for equipment with a “long life.” This temporary tax cut offers significant savings on new property with a depreciation period of 20 years or less. This will give employers – particularly small businesses – greater incentive to invest and create jobs for more Americans searching for work. The temporary bonus depreciation, coupled with expensing measures enacted in May 2003, resulted in a four percent increase in business spending in the first six months alone.

Section 179 Expensing: This provision allows employers, including small businesses, to fully expense $250,000 in both new and used tangible property in the year it is purchased up to an overall investment limit of $750,000. This will provide a particularly strong incentive for small companies to invest in their businesses so they can continue to provide good-paying jobs for the American people.

Increase in Government Sponsored Enterprises (GSE)/Federal Housing Administration (FHA) Conforming Loan Limit: The conforming loan limits for both FHA and GSE (such as Fannie Mae and Freddie Mac) loans would be increased from $362,000 to $725,000 and from $417,000 to $625,000 respectively.

III. No Extraneous Spending/Tax Hikes

The agreement in principle includes no extraneous spending on unemployment insurance, transportation infrastructure, food stamps, and Medicaid. In a letter to Speaker Pelosi last week, Republican Leader Boehner and Republican Whip Roy Blunt (R-MO) asked that any extraneous spending and tax hikes be taken off the table. All have been dropped.

Boehner represents Ohio’s 8th District, which includes all of Darke, Miami and Preble counties, most of Butler and Mercer counties, and the northeastern corner of Montgomery County. He was first elected to Congress in 1990.


AnotherVoice said...

Um, lets all look up the meaning of the word "rebate". While we are at it, let's define "immediate" as in “giving the economy an immediate shot in the arm”. While I know everyone loves to get something for nothing, this is politics at its best (sarcasm – this is the worst!). People will get “rebates”, even if they paid no taxes. Guess who actually pays for this. You see kids, the government has no money of its own…it has OUR money (or at least those of us who actually pay taxes). By the way, “immediate” to Congress means May at best. In my world that’s not very immediate. I believe the US economy could use a boost, but there are many better ways. Of course, none of them puts a check in your hands in an election year. This didn’t work the last time, and will have very little effect this time. In fact I predict the low income people will run to their friendly local pay-day lender and wind up in greater trouble than they are in currently. Whatever happened to the idea of flying choppers over cities and throwing out $100 bills? That’s immediate!

The Squeaky Wheel said...

My feeling is, if the Dems are ok with "rebates" why not just lower taxes off the front end.

I do agree though, that this is a bad idea. I mean I will cash the check, without a doubt, but most people will either pay bills with it, or those who are lower income will spend it on unneeded items, seeing it as "free money" where the economy is being hurt by debt, not lack of buying Flat Screen TVs.

Also, I am tired of the SKY IS FALLING crap. A recession is a lack of growth over 6 months or more... Not because Brian Williams told us so.

Hell, even Cabot Rea on WCMH 4 teased a story by saying "How can you help yourself during this recession?

Uh, what? This is like saying you are going to drown as you stand on the diving board. If you THIN you will, yeah, you will, but if you learn how to swim...

This rebate plan is like giving people an extra 5 minutes on the diving board... not teaching them how to swim.

Adria said...

I agree...this "rebate" is not going to solve any problems. I just don't understand why the two comments preceding mine assume that low-income people will buy unnecessary things, or get into greater trouble, etc.

All the low-income people I have spoken with, my family included, plan to pay bills/debt with the "free money".

Anonymous said...

I am a disgusted Middle Class American - because I work very hard and have an AGI over $75,000 I will not get the rebate even thought I pay much, much more in taxes than the average worker. So, my lazy brother will get free money - my very rich boss will get tax breaks and me, as middle class, once again gets screwed!!!!!!!

Anonymous said...

So, what is this "rebate", really?
Some pathetic attempt to pacify what surely must be a majority rapidly becoming enraged?
All I know is that wahtever this "rebate" turns out to be,(other than an insult), it isn't going to cover the cost of gas increases America is about to be pummelled with.
It's fairly easy to buy passivity from the ignorant in any society.
But for my part, don't piss up my back and tell me it's raining.