Are you going to get $$$ with the new Economic Stimulus plan if it passes?

Photo by: rachaelvoorhees
George Bush and company whipped up a plan to stimulate the economy and send much needed income back to the working man via tax rebates in 2008. The rebates, between $600 and $1200, will be issued and sent out by June 1, 2008. The one-time tax rebates are in an effort to pump about $150 billion into the economy this year and perhaps stave off the first recession since 2001.Individual taxpayers would get up to $600 in rebates, working couples $1,200 and those with children an additional $300 per child under the agreement. On top of that, 35 million families who make at least $3,000 but don’t pay taxes would get $300 rebates; which could certainly help, but I’m not thinking it is the cure-all for recession.

How do you fare in the situation?

An individual with $2,500 in earned income in 2007: Disqualified because income fell below the $3,000 threshold. No rebate.

A married couple with no children, with adjusted gross income of $100,000 in 2007: Would qualify for the full $1,200 couples. A $1,200 rebate.

A worker with one child, who earned $9,000 and owed no taxes in 2007: Would qualify for the $300 rebate available to individuals who pay no taxes but earned at least $3,000, plus an additional $300 for the child. A $600 rebate.

A couple with income of $145,000 in 2007, with three children: Would qualify for the full $1,200 for couples, plus $300 for each child. A $2,100 rebate.

A couple with income of $160,000 in 2007 with two children: Would qualify for a partial rebate, reduced by 5 percent for every $1,000 in income above the $150,000 threshold. An $1,800 rebate — $1,200 for the couple plus $300 per child — would go down by 50 percent for this family. A $900 rebate.

A couple with income of $200,000 and four children: Disqualified because their income exceeded $174,000, the phase-out limit. No rebate.

The CNN article goes on to say:

“Pelosi said as many as 116 million American families will get a rebate check. Checks could be in taxpayer mailboxes by June, according to an Associated Press report. The agreement includes a robust package of business incentives and help for homeowners facing possible mortgage foreclosures. The Treasury Department still must analyze the numbers to determine the price tag of the stimulus package, sources said.

To get to the agreement, Democrats dropped calls for increases in food stamps and an extension of unemployment compensation. Republicans agreed to allow people who pay Social Security taxes but not income taxes to get the checks, sources said.”

I like the idea, and I would fall into that category getting about 2k. Where do you fall? Do you think it is a good deal?

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  • mmj

    We are due $1800 here. From some of the polls I have seen, looks like a majority of the people are banking it, so that would not help much. Of course the polls don’t have good samplings. I bet that those on the lower side of the income scale, who should really be saving the cash, will be the ones spending the money at a greater percentage. This group probably does not go to news sites such as CNN and MSNBC and participate in online polls.

  • raymond

    I am supposed to get 1800 also. That will help pay my big credit card debt. I sure hope it passes!!!!!

  • Kirk

    None here. I get a big check for ZERO.

  • We would get $1800. The visa bill would be gone, and we’d make a little dent in our student loan. We wouldn’t be helping out the economy, but we’d be helping our own well-being a lot!

  • @mmj – yea, I hear some people are banking on it; unfortunately I read a post from Pinyo saying that people are spending it before it is even 100% in the bag; and that doesn’t work out so well. But good point.

    @raymond – welcome back and the key is to MAKE SURE it goes to that debt! 🙂

    @kirk – thanks for the comment, but ugh, sorry to hear.

    @Lynnae – You WOULD be simulating the economy by giving more money to VISA because they’ll put that to other investments possibly cooking up new jobs elsewhere – or at least that’s how I try to envision it. 🙂

  • FFB

    I think we’d be due $1800. Checks going out in June? Seems like the economy needs a boost now! I mentioned on another site That I think they should release this money via tax returns. Why not an instant tax return rebate? I expect to file in Feb. and get my return well before May or June. Quicker money equals quicker help and it gives people incentive to file early. And nothing needs to be sent out send out the checks.

    Is the stimulus package a good idea? Hey, I’d love to get some dough! But could this be used for a better purpose? We’re talking billions given out here! School funding maybe? Transportation/infrastructure? Small business loans or grants? What really got us into this mess to begin with? Let’s look at fixing that rather than throwing money at a band-aid that may not really fix anything.

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