Who gets what
How Americans in different financial situations would fare under the rebate plan proposed by House leaders and the White House.
— 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.

updated 1 hour, 31 minutes ago
WASHINGTON - With unprecedented speed and cooperation, Congress and the White House forged a deal Thursday to begin rushing tax rebates of $600 to $1,200 to most tax filers by spring, hoping they will spend the money just as quickly and jolt the ailing economy to life.

Rebates would be even higher for families with children.

The one-time tax rebates are at the center of a hard-won agreement to pump about $150 billion into the economy this year and perhaps stave off the first recession since 2001. House Speaker Nancy Pelosi, Republican leader John Boehner and Treasury Secretary Henry Paulson worked out the details in negotiations that stretched into Wednesday night at the Capitol
About two-thirds of the tax relief would go out in rebate checks to 117 million families beginning in May. Businesses would get $50 billion in incentives to invest in new plants and equipment.

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. In a key concession to Democrats, 35 million families who make at least $3,000 but don't pay taxes would get $300 rebates.

The rebates would phase out gradually for individuals whose adjusted gross income exceeds $75,000 and for couples with incomes above $150,000. Contributions to IRA and 401(k) retirement accounts and health savings accounts would not count toward the income limit.

"This package will lead to higher consumer spending and increased business investment," Bush said in hailing the agreement.

The bill will go straight to the House floor next week and on to the Senate, where some Democrats hope to add elements such as extending unemployment benefits for workers whose benefits have run out.

Indeed, many Democrats, such as Ways and Means Committee Chairman Charles Rangel, D-N.Y., and Edward Kennedy of Massachusetts, the liberal lion of the Senate, were deeply unhappy that Pelosi agreed to jettison that proposal in late-stage talks, as well as plans to increase food stamp payments.

"I do not understand, and cannot accept, the resistance of President Bush and Republican leaders to including an extension of unemployment benefits for those who are without work through no fault of their own," Rangel said.

http://www.msnbc.msn.com/id/22782454?GT1....

...I wonder if those factories are U.S. based...?

But some on Capitol Hill are raising concerns about the plan. Paul Ryan is the ranking Republican on the Budget Committee.

"I am concerned that, in our rush to help, we will talk ourselves into a quick feel-good hit [plan] today that will leave us with a bigger budgetary hangover tomorrow," he explained. "We need to understand that we simply cannot spend our way to prosperity. I am particularly concerned that Congress will use the excuse of fiscal stimulus to push through a wish list of new spending, further worsening our budget outlook and our nation's economic future."


....http://www.voanews.com/english/2008-01-2....

"Amid continued global market turmoil, the U.S. Congress' top economic forecaster says he believes the United States is entering a period of slow growth, but that the country will avoid a recession. VOA's Michael Bowman reports from Washington, where the head of the Congressional Budget Office testified on Capitol Hill Wednesday."

What are people saying they would do with the money?....

here are some examples...http://www.bargaineering.com/articles/yo....

..."how much longer can we be ripping the golden eggs out of the golden goose before the poor thing dies and China stops buying T-bills?"

That what the smart ones will do heres what J6P will do.

my personal faves

Quote:

Where did the money come from?

You can get one good hooker for $600 or 600 fat hookers for $1 each.

Money in America is like Doritos...eat (spend) all you have; they'll make (print) more.

Hell, this isnt even enough for 1 months rent. however, i hope it has some positive effect for others.

I plan on blowing my free money as soon as I get the check, probably on a TV or a PS3.

This didn't work last time, it's not going to work this time. Personally, I'm now going to take my "rebate" and invest it in a Springfield SOCOM II battle rifle so I can plug the poor people full of .308 when they try to rob me because they have no job and can't afford to eat.

As Vermillion said they will buy mud flaps or splurge on food for a week or 2.

Woo hoo, almost 3 months of car insurance!

Quote:

http://www.evilavatar.com/forums/showthr....

I like how some people are saying that they would invest their tax rebate in the battered stock market.

I would too, except that I'd go ahead and short something. Haha, wouldn't that be a great use for a tax rebate intended to stimulate the economy?

Quote:

The one-time tax rebates are at the center of a hard-won agreement...

Quote:

The rebates would phase out gradually...

Q: Why would you gradually phase a one time rebate out? Why would you NEED to?

Do we hope it gets bogged down due to the exclusion of extending unemployment benefits and food stamps? If it gets bogged down maybe the market sells off on the delay? If so this is the one and ONLY time in my life I will go with Ted Kennedy LOL.

I'm going to buy PUTs. I get the full couple discount and I'm keeping my wife's part.

Or I'll get an enema hooker to do me.

Gridking,

The link you posted really cracked me up. My favorite response on what they'd do with their "package":

hawaiilady responds:
Posted: January 24th, 2008 at 2:34 pm

I think all these people are idiots. I cant believe you are against this Stimulus Plan! Just let them help our economy. I cant believe that your all saying you’ll save the money:( your suppose to spend it and help our world be a better place! If you were to die tommorrow, I sure hope you can take that money with you. Stop thinking about yourselves and do something for your country like all our men and women in Irag fighting for our freedom. Your answers and comments just make me so upset! This is why were in so much trouble.

So ****ing funny!!

Tom responds:
Posted: January 18th, 2008 at 12:25 pm

I would fill up my gas tank about 4 times with the stimulus package and then buy myself a $0.99 double cheeseburger with the left over cash.

OMFG

Its UN-AMERICAN to SAVE ! SPEND SPEND SPEND !

Soon we will have the FREEDOM CARD ! SPEND UR WAY TO VICTORY !

— 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

I would have fit nicely here, but I took some big long term gains off the table and it is going to **** me. I need to quit working so I can take advantage of all this "FREE" money.

If someones asks you why mortgages cost 20%...there's your answer. If this passes, it is only the beginning of ramping interest rates and it looks like the debt market is already front running it.

Yep all that "FREE" money will start to cost. I wonder if they will start to back off some of these items when they see rates rising...

Oh Nothing. I bet that's what you tell all the boys.

Stock

If past is prelude...they won't stop until lack of tax cash flow from the crushed private sector impacts debt service to the point they have cut entitlements.

No different than J6P making his mortgage payment with a credit card he services with his HELOC.

Haha, Plutarch warned about this sort of thing.

Maybe they'll decide it's a bad idea however, and by the time the senate and the conference committee is through with it the final product will look quite different. That does happen sometimes.

And in fact as long as some cheques get mailed out, I doubt very much whether or not the average voter even knows or cares about the changes to agency mortgages.

Geoff

Yep, The Consolation, Moralia always resonated for me.

Nothing, what percentage of Federal income goes to pay interest on the Federal debt?

In 2007 the Us .gov took in over $2Trillion and paid out over $500Billion in debt service.

yeah, I guess there is really no hope of the government cutting back on THEIR wasteful spending to give me money that already belongs to me.

just think... $1200-2100 back compared to the hundreds of thousands they'll steal and waste on the social security ponzi scheme.

My hometown newspaper in Northwest, Florida (online edition) has a poll up asking people what they would do with their extra $600 to $1,200. The results from 268 votes are as follows:

50.0% Pay off debt
33.6% Put it in the bank
7.80% Spend it on something you don't need
8.60% Purchase depreciating assets (cars, electronics, appliances)

I wouldn't read too much into poll results because my read on most people is that they will generally aim or profess to do the "noble" thing in public but will opt for "vice" in private/reality. More people will probably blow the bucks on some useless knick knacks/baubles than the poll implies in my opinion.

Hi, can someone tell me a more or less accurate timeline of how this thing progresses? Like reaching senate when, then how long till final draft is voted upon? Opinions welcome, thanks.

Akula, what? No separate category for "buying a stereo that can blow a woman's clothes clean off her body"?

I guess that falls under "depreciating assets" which is a contradiction in terms.

C'mon,

More bread and circuses.

How about if I say the magic word?

NOW!!