2008 Woodie Awards
Refunds expected for most
Mary Konecnik
Issue date: 1/28/08 Section: News
President Bush and the House of Representatives reached an agreement on Thursday in an effort to stimulate the economy. The $150 billion package includes tax rebates for most tax paying citizens.
The rebates will give individual tax payers $600, couples $1,200, and families an additional $300 per child. The rebates are intended for middle to lower class citizens. Individuals who earn up to $75,000 and couples earning up to $150,000 will be able to earn the full rebates. After that, rebates will be reduced by five percent for each $1,000 in income. The rebates are expected to reach up to 117 million taxpayers.
Businesses will also be affected by this agreement. Companies will be allowed to double the limit on expenses that they can write off and will be given a fifty percent bonus deduction on new equipment that would normally be depreciated over many years.
When it comes to the current mortgage market problems, government-sponsored mortgage companies have had their loan and mortgage limits raised. This will make it easier to purchase a new mortgage or refinance a loan.
With this new plan, the 2008 budget deficit is projected at $219 billion. House officials said the plan will add $110 billion to the national debt over ten years.
Both parties had to make quick and intense compromises in this deal. However, they both feel that they have walked away with a victory. The Democrats initially wanted to include an increase in unemployment benefits and food stamps while the Republicans wanted to focus mostly on tax cuts.
Many economists have criticized the expensive plan. They claim that increasing food stamps and unemployment benefits would stimulate the economy faster than rebate checks. The rebate checks will not be received until May at the earliest and will therefore not affect spending until the end of 2008. The tax rebate plan is not complete yet and may be slightly revised by the Senate.
The rebates will give individual tax payers $600, couples $1,200, and families an additional $300 per child. The rebates are intended for middle to lower class citizens. Individuals who earn up to $75,000 and couples earning up to $150,000 will be able to earn the full rebates. After that, rebates will be reduced by five percent for each $1,000 in income. The rebates are expected to reach up to 117 million taxpayers.
Businesses will also be affected by this agreement. Companies will be allowed to double the limit on expenses that they can write off and will be given a fifty percent bonus deduction on new equipment that would normally be depreciated over many years.
When it comes to the current mortgage market problems, government-sponsored mortgage companies have had their loan and mortgage limits raised. This will make it easier to purchase a new mortgage or refinance a loan.
With this new plan, the 2008 budget deficit is projected at $219 billion. House officials said the plan will add $110 billion to the national debt over ten years.
Both parties had to make quick and intense compromises in this deal. However, they both feel that they have walked away with a victory. The Democrats initially wanted to include an increase in unemployment benefits and food stamps while the Republicans wanted to focus mostly on tax cuts.
Many economists have criticized the expensive plan. They claim that increasing food stamps and unemployment benefits would stimulate the economy faster than rebate checks. The rebate checks will not be received until May at the earliest and will therefore not affect spending until the end of 2008. The tax rebate plan is not complete yet and may be slightly revised by the Senate.
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