Senate Deal on Economic Stimulus Plan

Helena · 02-07-2008, 03:15 PM

Senate has deal on economic stimulus plan - Boston.com

February 7, 2008

WASHINGTON (Reuters) - Democrats and Republicans in the U.S. Senate have reached a deal on an election-year economic stimulus plan that would send government rebate checks to millions of Americans including retirees and disabled veterans.

brewer12345 · 02-07-2008, 03:18 PM

Surprisingly quick, considering they were squabbling about doling out money.

Helena · 02-07-2008, 03:26 PM

Senate Democrats agree to GOP stimulus plan

MarketWatch

WASHINGTON (MarketWatch) -- After coming up one vote short on their bill on Wednesday, Senate Democrats agreed Thursday to an economic stimulus bill backed by the Republican minority.

The Senate was to vote on the bill later Thursday. Once the Senate acts, the House is likely to approve the measure quickly and send it to President Bush for his signature.

**

The Senate Republican plan is similar to the House-passed measure, but would also give tax rebate checks to seniors, veterans and disabled people. The bill also has provisions to prevent undocumented immigrants from receiving tax rebates.

The bill agreed to is the one Senate Republican leader Mitch McConnell proposed earlier in the week, which is nearly identical to one passed by the House last week after negotiations among House leaders and the White House.

Senate Democrats agree to GOP stimulus plan - MarketWatch

Oldbabe · 02-07-2008, 04:43 PM

So is it based on 2007 income? I can't find any article that lists the details.

Helena · 02-07-2008, 04:50 PM

Senate Approves $151 Billion Economic Stimulus Bill

**

Rebate Checks

The House measure would send tax-rebate checks of $600 to $1,200 to about 111 million Americans who show at least $3,000 in earned income or who pay income tax. The Senate bill approved today follows the same formula, while allowing people living on Social Security or disability benefits to get a rebate as well.

The rebates phase out for individuals earning more than $75,000 and couples earning more than $150,000. Any taxpayer who has children and qualifies for any rebate will receive an additional $300 per child.

The bill also doubles the amount of equipment costs a small business can expense in the first year to $250,000 and allows a 50 percent bonus depreciation for businesses that buy major equipment.

Fannie Mae and Freddie Mac, the government-sponsored mortgage finance companies, will be allowed to buy loans worth as much as $729,750 in expensive markets, an increase over the current $417,000 loan limit, a move that could help struggling homeowners to refinance large mortgages at a lower interest rate.

Bloomberg.com: Worldwide

Retire Soon · 02-07-2008, 09:49 PM

Congress has finally approved an Economic Stimulus Package and President Bush has made it clear that he plans to sign it.

Congress Approves Economic-Stimulus Bill - WSJ.com

Marquette · 02-07-2008, 09:53 PM

Bummer... well, no check for us. I guess I'll have to come up with another way to stimulate the ol' savings account.

Bikerdude · 02-07-2008, 09:54 PM

What the stimulus package means for you - MarketWatch

Sue J · 02-08-2008, 10:37 AM

Does anyone have a link to the actual language of the bill that was passed? In this part -

Quote:

The House measure would send tax-rebate checks of $600 to $1,200 to about 111 million Americans who show at least $3,000 in earned income or who pay income tax.

I'm wondering what comprises "earned income". My son had wages of $2450, where taxes were withheld and he was issued a W2. But he also had $750 paid by check but not as payroll, no taxes were withheld and he was not issued a 1099MISC, so the $750 will be shown on Line 21 - Miscellaneous Income.

I'm trying to find out if the rebate comes from only wages or if the misc. income counts toward the $3000.

FIREdreamer · 02-08-2008, 11:14 AM

And now we know how we're going to pay for this "stimulus package". It's merely an advance on the tax refund people will get next year, not a "rebate". So in our case, we might get $1200 extra this year, but next year, instead of receiving a tax refund, we'll probably owe the IRS. So in other words, it's just a way to get people to spend this year some of the tax refund money they would have received next year. It's just a loan, not "free" money. So now I know what I'll do with that "rebate". I'll save it to pay what I'll owe to the IRS next year.

Treasury chief: Tax rebate checks to go out in May - CNN.com

Quote:

The checks are an advance on next year's refunds, and most, if not all of the money, will be deducted from taxpayers' refunds in 12 months' time.

**Want2retire** · 02-08-2008, 11:29 AM

From Firedreamer's CNN.com link,

Quote:

Nearly half (46 percent) said they plan to use the rebate to pay off debt and a quarter (28 percent) would save the money

OK, that's the last straw. I'm going to do my patriotic duty and blow my $600 in an impulsive buying spree!

myself · 02-08-2008, 11:33 AM

Quote:

Originally Posted by Sue J

Does anyone have a link to the actual language of the bill that was passed? In this part -

I'm wondering what comprises "earned income". My son had wages of $2450, where taxes were withheld and he was issued a W2. But he also had $750 paid by check but not as payroll, no taxes were withheld and he was not issued a 1099MISC, so the $750 will be shown on Line 21 - Miscellaneous Income.

I'm trying to find out if the rebate comes from only wages or if the misc. income counts toward the $3000.

I would think income is income (whether miscellaneous or not). I'm guessing that he'll probably get it, since he'd be above the $3,000 lower limit.
Which seems kinda silly. A person making $3,000 wouldn't have paid any taxes in the first place (well, aside from SS & medicare).

Notmuchlonger · 02-08-2008, 12:29 PM

Quote:

Originally Posted by FIREdreamer

And now we know how we're going to pay for this "stimulus package". It's merely an advance on the tax refund people will get next year, not a "rebate". So in our case, we might get $1200 extra this year, but next year, instead of receiving a tax refund, we'll probably owe the IRS. So in other words, it's just a way to get people to spend this year some of the tax refund money they would have received next year. It's just a loan, not "free" money. So now I know what I'll do with that "rebate". I'll save it to pay what I'll owe to the IRS next year.

Treasury chief: Tax rebate checks to go out in May - CNN.com

Yep someone will pay. It seems like to me some wealth distribution is going on.

eridanus · 02-08-2008, 12:46 PM

Quote:

Originally Posted by Marquette

Bummer... well, no check for us. I guess I'll have to come up with another way to stimulate the ol' savings account.

Bah, if it's an advance, it won't matter anyway - I'd just send it back to the IRS in my quarterlies.

Sue J · 02-08-2008, 12:50 PM

What happened to the idea of eliminating the 10% tax bracket? Is that still a possibility? If that's still included in the package, then taxes in 2008 and later will be smaller, explaining the rebate as a pre-refund.

Bikerdude · 02-08-2008, 12:52 PM

Quote:

Originally Posted by FIREdreamer

And now we know how we're going to pay for this "stimulus package". It's merely an advance on the tax refund people will get next year, not a "rebate". So in our case, we might get $1200 extra this year, but next year, instead of receiving a tax refund, we'll probably owe the IRS. So in other words, it's just a way to get people to spend this year some of the tax refund money they would have received next year. It's just a loan, not "free" money. So now I know what I'll do with that "rebate". I'll save it to pay what I'll owe to the IRS next year.

Treasury chief: Tax rebate checks to go out in May - CNN.com

Not really true. The rebate is a tax cut. In 2008 the 10% bracket will start at $6,000 for just one year. So the first $6,000 will be the 0% bracket giving you $600 more in refunds. You will get it in 2007 and account for it in 2008.

However its not free. It will go on the deficit and be paid by your kids

.

Goonie · 02-08-2008, 01:00 PM

Quote:

Originally Posted by Bikerdude

Not really true. The rebate is a tax cut. In 2008 the 10% bracket will start at $6,000 for just one year. So the first $6,000 will be the 0% bracket giving you $600 more in refunds. You will get it in 2007 and account for it in 2008.

That's how I read it too. That would be better than giving me $600 of my '08 refund early.......since I won't get that much of a refund for '08, IF I get ANY refund for '08. I prefer to either break even or owe a little, rather than make an interest free loan to our uncle.

FIREdreamer · 02-08-2008, 01:12 PM

Quote:

Originally Posted by Bikerdude

Not really true. The rebate is a tax cut. In 2008 the 10% bracket will start at $6,000 for just one year. So the first $6,000 will be the 0% bracket giving you $600 more in refunds. You will get it in 2007 and account for it in 2008.

Do you have a source for that? I am trying to find more information about it and I didn't see this information reported anywhere so far. If that's the case, then it would be more like a tax cut for 2008? They just happen to give you the extra refund one year early, is this correct?

Bikerdude · 02-08-2008, 01:58 PM

Quote:

Originally Posted by FIREdreamer

Do you have a source for that? I am trying to find more information about it and I didn't see this information reported anywhere so far. If that's the case, then it would be more like a tax cut for 2008? They just happen to give you the extra refund one year early, is this correct?

You are correct. I posted this link before. You must have missed it.

What the stimulus package means for you - MarketWatch

FIREdreamer · 02-08-2008, 02:07 PM

Quote:

Originally Posted by Bikerdude

You are correct. I posted this link before. You must have missed it.

What the stimulus package means for you - MarketWatch

Sorry, I just read the first part of the article and didn't take the time to scroll all the way down to the "nuts and bolts" section. Thanks.

02-07-2008, 03:15 PM	#1
Helena Recycles dryer sheets Join Date: Aug 2006 Posts: 407	Senate Deal on Economic Stimulus Plan Senate has deal on economic stimulus plan - Boston.com February 7, 2008 WASHINGTON (Reuters) - Democrats and Republicans in the U.S. Senate have reached a deal on an election-year economic stimulus plan that would send government rebate checks to millions of Americans including retirees and disabled veterans.

02-07-2008, 03:18 PM	#2
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,226	Surprisingly quick, considering they were squabbling about doling out money. __________________ “When you realize that you are one of the rare few who observe moral principles in their relationships with others, there is a temptation to sink into amorality, not out of conviction or pleasure but simply to avoid further pain, because there is no greater suffering than being an angel in hell, whereas a devil feels at home wherever he goes.” – Martin Page, How I Became Stupid

02-07-2008, 09:49 PM	#6
Retire Soon Full time employment: Posting here. Join Date: Nov 2005 Posts: 535	Congress Approves Economic Stimulus Bill Congress has finally approved an Economic Stimulus Package and President Bush has made it clear that he plans to sign it. Congress Approves Economic-Stimulus Bill - WSJ.com

02-07-2008, 09:54 PM	#8
Bikerdude Full time employment: Posting here. Join Date: Jul 2006 Posts: 521	What the stimulus package means for you - MarketWatch __________________ “I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan

02-07-2008, 03:26 PM	#3
Helena Recycles dryer sheets Join Date: Aug 2006 Posts: 407	Senate Democrats agree to GOP stimulus plan MarketWatch WASHINGTON (MarketWatch) -- After coming up one vote short on their bill on Wednesday, Senate Democrats agreed Thursday to an economic stimulus bill backed by the Republican minority. The Senate was to vote on the bill later Thursday. Once the Senate acts, the House is likely to approve the measure quickly and send it to President Bush for his signature. ** The Senate Republican plan is similar to the House-passed measure, but would also give tax rebate checks to seniors, veterans and disabled people. The bill also has provisions to prevent undocumented immigrants from receiving tax rebates. The bill agreed to is the one Senate Republican leader Mitch McConnell proposed earlier in the week, which is nearly identical to one passed by the House last week after negotiations among House leaders and the White House. Senate Democrats agree to GOP stimulus plan - MarketWatch

02-07-2008, 04:43 PM	#4
Oldbabe Thinks s/he gets paid by the post Join Date: Oct 2005 Posts: 1,125	So is it based on 2007 income? I can't find any article that lists the details.

02-07-2008, 04:50 PM	#5
Helena Recycles dryer sheets Join Date: Aug 2006 Posts: 407	Senate Approves $151 Billion Economic Stimulus Bill ** Rebate Checks The House measure would send tax-rebate checks of $600 to $1,200 to about 111 million Americans who show at least $3,000 in earned income or who pay income tax. The Senate bill approved today follows the same formula, while allowing people living on Social Security or disability benefits to get a rebate as well. The rebates phase out for individuals earning more than $75,000 and couples earning more than $150,000. Any taxpayer who has children and qualifies for any rebate will receive an additional $300 per child. The bill also doubles the amount of equipment costs a small business can expense in the first year to $250,000 and allows a 50 percent bonus depreciation for businesses that buy major equipment. Fannie Mae and Freddie Mac, the government-sponsored mortgage finance companies, will be allowed to buy loans worth as much as $729,750 in expensive markets, an increase over the current $417,000 loan limit, a move that could help struggling homeowners to refinance large mortgages at a lower interest rate. Bloomberg.com: Worldwide

02-07-2008, 09:53 PM	#7
Marquette Thinks s/he gets paid by the post Join Date: Jan 2008 Posts: 2,020	Bummer... well, no check for us. I guess I'll have to come up with another way to stimulate the ol' savings account.

02-08-2008, 12:50 PM	#15
Sue J Recycles dryer sheets Join Date: Feb 2007 Posts: 340	What happened to the idea of eliminating the 10% tax bracket? Is that still a possibility? If that's still included in the package, then taxes in 2008 and later will be smaller, explaining the rebate as a pre-refund.