Bush Administration Considering Tax Rebates, Other Tax Breaks
Thursday January 17, 2008
President Bush and Congressional leaders are considering various options to boost a slowing economy, according to this Associated Press article showing up in the news headlines:
"United for urgent action, the White House and Congress raced toward emergency steps Thursday to rescue the national economy from a possible recession, including tax rebates of at least $300 a person — and maybe as much as $800. Federal Reserve Chairman Ben Bernanke endorsed the idea of putting money into the hands of those who would spend it quickly and boost the flagging economy."The last time we had a tax rebate was 2001, when taxpayers received an advance on our tax refund called the rate reduction credit, which was a one-time rebate of $300 to $600. (The link goes to an old article I dug up from tax journalist Kay Bell about the rebate and how it was the result of lowering the 15% tax bracket to 10%.)
Noteworthy is that policymakers in both the executive and legislative branches are calling for immediate, but temporary, tax relief to help stimulate a sluggish US economy. Also noteworthy is that the President isn't pushing hard for making his tax cuts permanent. A host of tax breaks, lower marginal tax rates and various deductions, are scheduled to expire at the end of the year 2010.
Related information:
- Economic Woes, Presidential Candidates' Fixes (National Public Radio)
- Taking Action to Keep Our Economy Healthy (fact sheet from whitehouse.gov)
- Tax rebates: Where's your check (details on possible economic stimulus plans from cnnmoney.com)
- Tax Rebate or Payment? A Policy Debate Begins (Democratic and Republican responses to Bush's objectives for stimulating the economy from nytimes.com)
This “tax rebate” is a terrible. If Bush were serious about getting the economy back on track (1) he’d reinstate usury laws, (2) crack down on predatory lenders, (3) and encourage savings, (4) and repeal the bankruptcy laws he enacted when he first got into office.
I totally agree with Lois. The tax rebate is bad. Furthermore, Merrill Lynch and everyone else would profited from these booms are taking huge write-offs and not being penalized for it. The average citizen cannot write-off his debt!
While Congress debates tax refunds, many Louisiana residents who claimed Casualty loss on their 2005 returns as the IRS suggested (Pub 4512-C)and in 2006 or 07 received a federal grant to help in rebuilding must include the grant in current taxable income.We are on Social Security and 3/4 of our SS income must also be included.Our taxes have increased from $70. to $7000.Our home is still not comletely rebuilt and this tax will be paid out of the grant because of our low income.