More Stimulus For The Economy :: Tax Rebates

After the emergency rate cut from the Federal Reserve just days ago, there is news of additional efforts to stimulate the economy with an announcement of a new deal that will give most tax filers a refund of $600 to $1,200, and more for those with children.

The $150 billion package would provide a rebate up to $600 to individuals who pay income taxes, with working couples receiving up to $1,200 and for those with children an additional $300 per child. If you make at least $3,000 but do not pay taxes, you would still receive a rebate of $300.

In addition to the tax rebates, which account for roughly $100 billion, there is also approximately $50 billion in business tax cuts.

Businesses would be permitted to immediately write off 50% of the purchase of plants and other capital equipment, while also allowing small businesses the chance to write off additional purchases of equipment.

According to the article, the rebates would phase out gradually for individuals whose income exceeds $75,000 and couples with incomes above $150,000. Individuals with incomes up to $87,000 and couples up to $174,000 would get partial rebates. The caps rise higher for individuals and couples with children.

The goal is to send the package to the White House by February 15th for President Bush’s signature, with the checks possibly being distributed as early as June.