Last month the US House of representatives quickly came to an agreement on the size and scope of the economic stimulus package with the White House and approved the measure by an overwhelming vote of 385-35. The immediately called upon the US Senate, along with the white House, to adopt the House bill without changes.
However, the Senate Finance Committee, led by Democrat Max Baucus, D-MT, added over $40 Billion to the bill before sending it to the Senate for debate and vote. The new version of the bill, supported by both Barack Obama, D-IL, and Hillary Clinton, D-NY, would have added huge delays to the passage of the stimulus package as the House and Senate would need to agree on changes so that the bills matched. The republicans filibustered in the Senate that basically killed the bill by not letting it go to a vote.
The Senate then quickly acted to approve, by a vote of 81-16 (Obama and Clinton did not vote due to campaigning), a bill sponsored by Senator Mitch McConnell, R-KY, which was essentially the same as the House version except for the addition of some added benefits for Senior Citizens and Disabled Veterans. The house approved this bill hours later so it could be quickly sent to the President for his signature.
How much will I get?
Basically, if you make less than $75,000 ($150,000 for a married couple) you will get a check in May or June of this year. Single taxpayers will get $600 and a married couple will get $1,200. Plus, you will receive $300 per child (eligibility is the same as for a child that qualifies for the child tax credit on your tax returns) For those who make at least $3,000, but not enough to pay taxes, will receive a $300 rebate for individuals and $600 for married couples. This bill also covers up to 20 Million senior citizens living solely on Social Security and 250,000 disabled veterans.
What do I have to do to get this money?
The rebates will be based upon tax returns for 2007. So, as long as you file your tax return, you will automatically receive your rebate. You need to do nothing else. For those taxpayers who file for an extension on their tax returns, or file their tax returns late, their rebate checks will be delayed accordingly. Those who do not file a tax return will not receive their rebate checks.
Will this help the economy grow?
This is the big question. Many people feel that most of this money will go to savings or paying down debts. If this is the case, it will have a limited effect on economic growth. When we pay down debt with this money, we are paying for purchases that were made in the past. The purchases had an impact on the economy when they were made.
In my discussion with friend, family, and customers, I think most of them will spend at least some of the money they receive. Many people I have spoken with are looking to make home improvements or take a more expensive family vacation this summer with at least some of the money. A few of them are looking to use the money as a down payment on a new car. The more that is spent of this money the more it will help the economy.
However, the Senate Finance Committee, led by Democrat Max Baucus, D-MT, added over $40 Billion to the bill before sending it to the Senate for debate and vote. The new version of the bill, supported by both Barack Obama, D-IL, and Hillary Clinton, D-NY, would have added huge delays to the passage of the stimulus package as the House and Senate would need to agree on changes so that the bills matched. The republicans filibustered in the Senate that basically killed the bill by not letting it go to a vote.
The Senate then quickly acted to approve, by a vote of 81-16 (Obama and Clinton did not vote due to campaigning), a bill sponsored by Senator Mitch McConnell, R-KY, which was essentially the same as the House version except for the addition of some added benefits for Senior Citizens and Disabled Veterans. The house approved this bill hours later so it could be quickly sent to the President for his signature.
How much will I get?
Basically, if you make less than $75,000 ($150,000 for a married couple) you will get a check in May or June of this year. Single taxpayers will get $600 and a married couple will get $1,200. Plus, you will receive $300 per child (eligibility is the same as for a child that qualifies for the child tax credit on your tax returns) For those who make at least $3,000, but not enough to pay taxes, will receive a $300 rebate for individuals and $600 for married couples. This bill also covers up to 20 Million senior citizens living solely on Social Security and 250,000 disabled veterans.
What do I have to do to get this money?
The rebates will be based upon tax returns for 2007. So, as long as you file your tax return, you will automatically receive your rebate. You need to do nothing else. For those taxpayers who file for an extension on their tax returns, or file their tax returns late, their rebate checks will be delayed accordingly. Those who do not file a tax return will not receive their rebate checks.
Will this help the economy grow?
This is the big question. Many people feel that most of this money will go to savings or paying down debts. If this is the case, it will have a limited effect on economic growth. When we pay down debt with this money, we are paying for purchases that were made in the past. The purchases had an impact on the economy when they were made.
In my discussion with friend, family, and customers, I think most of them will spend at least some of the money they receive. Many people I have spoken with are looking to make home improvements or take a more expensive family vacation this summer with at least some of the money. A few of them are looking to use the money as a down payment on a new car. The more that is spent of this money the more it will help the economy.
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