The stimulus package:
– Individuals must earn at least $3,000 to get a $300 rebate
– 117 million people will get rebates, 35 million of whom don’t pay taxes
– Higher-income individuals would receive up to $600
– Couples could receive $1,200 plus $300 per child
– Rebates would be limited to individuals earning less than $75,000 and couples earning less than $150,000.
Next year, those paying taxes will be taxed on the “rebate” as regular income. Those who don’t make enough income to be taxed will not. Does that still make it a rebate? At least a partial one for taxpayers. But it’s simply a handout for non-taxpayers, not a rebate. Incidentally, according to the AP report:
Bush has supported larger rebates of $800-$1,600, but his plan would have left out 30 million working households who earn paychecks but don’t make enough to pay income tax, according to calculations by the Urban Institute-Brookings Institution Tax Policy Center. An additional 19 million households would receive only partial rebates under Bush’s initial proposal.
So money intended for the average American tax-payers was pulled so it could be sent to non-taxpayers. Nice.
– The AMT will also be suspended for 2007
– Businesses will be given incentives to invest in equipment
– Fannie Mae and Freddie Mac will be temporarily allowed to buy mortgages of up to $625,000, exceeding a $417,000 federal limit.
– Extension of unemployment benefits
– Provide additional food-stamp aid
Hey, is it an election year or something?