Changes to the tax rebate stimulus plan...

[dvcgirl]

I know some are following this, and it seems like they're close to a deal, but that there are significant changes.

Now it seems that rebate amount would be $300 for nearly everyone who earns a paycheck, regardless of how much income tax they pay. There would also be a $300 per child rebate, with a cap of $1,200 per family.

There is also a cap on who would qualify with the number being floated now at $75,000 per individual and $150,000 per couple. You make above that...you get nothing.

Dems have conceded on their hopes for an increase in food stamps and unemployment insurance. Republicans gave in on that $800/$1,600 amount and the income tax requirement to get more money for big business.

 

[Schachteles]

Interesting...I was going to ask because on this years taxes we have three kids...but I guess we will get $1200, $300 for each of our kids and $300 for my DH and I. So I guess it isn't bad.

Won't believe it till the check is in hand and we know the ramifications for 2008 taxes.

 

[dvcgirl]

Interesting...I was going to ask because on this years taxes we have three kids...but I guess we will get $1200, $300 for each of our kids and $300 for my DH and I. So I guess it isn't bad.

Won't believe it till the check is in hand and we know the ramifications for 2008 taxes.

Right, and like I said, this is all speculation. But I think this will be closer to what we end up seeing.

For the record once again, I think this a terrible idea. Between the Fed and the Government, I think we're being set up for much bigger problems down the road. We're leveraged to the hilt because it was so easy for everyone and his brother to borrow money. And so now the prescription from Fed is to lower interest rates, which makes borrowing cheap again, so we can begin the process again. Onto the next bubble....nothing to see here.

I will say that if the goal of this plan is to get people to spend this money as fast as they get it, this plan is more likely to achieve this end. Since the government seems hell bent on doing this, they might as well give it people who really need it....lower to middle income people and more importantly, to families. We're way above the limit, so we won't see anything. And that makes sense since we don't need any help, and had no plans to spend a rebate if we got it.

 

[Golf4food]

How about they give married couples who don't have kids more than $300 to make up for the marriage penalty tax that we all get hit on instead? That would be nice... :-/

 

[Schachteles]

How about they give married couples who don't have kids more than $300 to make up for the marriage penalty tax that we all get hit on instead? That would be nice... :-/

I don't agree with that at all...but maybe that is me as a married couple with kids. We still get the marriage penalty, but have three kids to pay for. Really families should get MORE then $300 since we have more mouths to feed, etc. But that is just my opinion.

 

[moppety]

How about they give married couples who don't have kids more than $300 to make up for the marriage penalty tax that we all get hit on instead? That would be nice... :-/

It seems to me that if both in a couple work, and each made over $3k but combined under $150k, then they would receive $600 total. Am I reading that right?

 

[dvcgirl]

I don't agree with that at all...but maybe that is me as a married couple with kids. We still get the marriage penalty, but have three kids to pay for. Really families should get MORE then $300 since we have more mouths to feed, etc. But that is just my opinion.

FYI....CNN is now reporting that it's $600/$1200 per person/couple. So clearly all kinds of different details are being leaked and it's constantly changing.

The info I read this morning was on www.cnbc.com.

I honestly think that they're leaking the info to see what the reaction will be. The markets didn't like the $300/$600 deal....

Guess we'll have to wait and see. It does seem like it will be less than the original $800/$1,600 deal though, and that more people on the lower end will get checks and less on the very high end.

 

[cats mom]

How about they give married couples who don't have kids more than $300 to make up for the marriage penalty tax that we all get hit on instead? That would be nice... :-/

If I'm understanding the program correctly (at least as posted above) a married couple, who are both working, would actually get $600

I think the whole idea is to get money flowing into the economy.

Kids = lots of extra expenses, so no doubt they figure giving more to larger families provides a better chance of getting that money spent, rather than tucked into savings and/or investments.

 

[Schachteles]

Sorry but FAMILIES should get more!!

 

[dvcgirl]

Here's the latest (see link below)

Sounds like a blend of the first and second idea.

Cap on income of 75K single, 150K couples. If you earn that or more you get nothing.

Tax payers will get the $600/$1,200 deal. It says that there is $300 per child as well, but I think that they'll cap it to $1,200 per family if I'm reading it correctly.

Non-tax payers (lower income folks who earn a paycheck) will get the $300/$600 deal with the extra $300 per child....capped at $1,200.

Bush wants to reward tax payers and business. Dems don't want lower income earners left out and want more for families.


http://money.cnn.com/2008/01/24/news/economy/stimulus_package/index.htm?cnn=yes

 

[budbeerlady]

I just fail to see how $300 is going to change anything. I think the whole thing is a farce but $800 will do more than $300.

 

[mrsklamc]

Sorry but FAMILIES should get more!!

I understand the point that you have more mouths to feed, but, I'm going to argue semantics. Just because we don't have kids, doesn't mean we aren't a family.

 

[LisaNJ25]

Here's the latest (see link below)

Sounds like a blend of the first and second idea.

Cap on income of 75K single, 150K couples. If you earn that or more you get nothing.

Tax payers will get the $600/$1,200 deal. It says that there is $300 per child as well, but I think that they'll cap it to $1,200 per family if I'm reading it correctly.

Non-tax payers (lower income folks who earn a paycheck) will get the $300/$600 deal with the extra $300 per child....capped at $1,200.

Bush wants to reward tax payers and business. Dems don't want lower income earners left out and want more for families.


http://money.cnn.com/2008/01/24/news/economy/stimulus_package/index.htm?cnn=yes

How are people with low incomes earning a paycheck and not paying taxes?

 

[Toby'sFriend]

Cap on income of 75K single, 150K couples. If you earn that or more you get nothing.

well...... easy come, easy go.

 

[harleyquinn]

FYI....CNN is now reporting that it's $600/$1200 per person/couple. So clearly all kinds of different details are being leaked and it's constantly changing.

The info I read this morning was on www.cnbc.com.

I honestly think that they're leaking the info to see what the reaction will be. The markets didn't like the $300/$600 deal....

Guess we'll have to wait and see. It does seem like it will be less than the original $800/$1,600 deal though, and that more people on the lower end will get checks and less on the very high end.

I totally agree!

And we're all still waiting to hear if this is in reality a money now loan for next year's taxes. That's the thing I'm more curious about.

Thanks for keeping us Up-to-date DVCgirl!

 

[harleyquinn]

That article from CNN says the deal has been reached and we'll get some announcement today.

 

[Schachteles]

I understand the point that you have more mouths to feed, but, I'm going to argue semantics. Just because we don't have kids, doesn't mean we aren't a family.

Oh and you are a family. But there is a huge difference in the put out if you are feeding two mouths verses five...not to mention everything else that kids cost us (health care (HUGE ONE), clothing, education)!!

 

[budbeerlady]

http://abcnews.go.com/Business/story?id=4182711&page=1

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.

Another element of the plan is a package of tax breaks for businesses that could cost as much as $70 billion, far more than had been expected, a senior House aide and a Democratic lobbyist said.

 

[dvcgirl]

Oh and you are a family. But there is a huge difference in the put out if you are feeding two mouths verses five...not to mention everything else that kids cost us (health care (HUGE ONE), clothing, education)!!

Yeah, as a person with no kids, I still gotta agree with Schachteles on this one. I mean, I think of DH and I as a married couple, not so much a "family" in this sense of the word. People with kids who are struggling really need the money more than a struggling couple.

Overall, I think this is all just a blip in the bigger scheme of things. I mean, $300...$600....$1,200, it will help people out a tiny bit, for maybe a month or so....but beyond that this is purely political. They're just hoping that this will give folks a psychological lift. I think that this economic downturn is just getting started and that this "stimulus" plan will seem a whole lot smaller by the time they cut the checks this summer....

 

[mrsklamc]

Oh and you are a family. But there is a huge difference in the put out if you are feeding two mouths verses five...not to mention everything else that kids cost us (health care (HUGE ONE), clothing, education)!!

You are right. But, they should just take less of our money away to begin with. What they do is equivalent to you making your household budget and then informing your employer what they are going to pay you.