Tax Rebates To Stimulate Economy Tentatively Approved

by Darren

The idea is simple: if you cut taxes, you put more money in the hands of Americans. With that money in their hot little hands, they do what the do best: spend! That is the latest idea being debated by politicians to stop the U.S economy from dumping altogether. A tentative deal has been reached about these tax breaks.

Under the tentative plan, 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.

Workers would have to have earned at least $3,000 in 2007 to receive the rebates, the officials said.

The cost of the final business tax break package was uncertain. The two leaders agreed to allow businesses to immediately write off 50 percent of purchases of plants and other capital equipment and to permit small businesses to write off additional purchases of equipment. It appeared that a provision to allow businesses suffering losses now to reclaim taxes previously paid might be dropped to reduce the cost of the business package.

So far the stimulus package has been met with moderate enthusiasm at best. Maybe once the final details are hammered out, the news will get better.