House passes economy stimulus package

[w¡n9Nµ7 §£@¥€r 123]

The House, seizing a rare moment of bipartisanship to respond to the economy's slump, overwhelmingly passed a $146 billion aid package Tuesday that would speed rebates of $600-$1,200 to most taxpayers.

The plan, approved 385-35 after little debate, would send at least some rebate to anyone with at least $3,000 in income, with more going to families with children and less going to wealthier taxpayers.

It faced a murky future in the Senate, though, where Democrats and Republicans backed a larger package that adds billions of dollars for senior citizens and the unemployed, and shrinks the rebate to $500 for individuals and $1,000 for couples. That plan, written by Finance Committee Chairman Max Baucus, would deliver checks even to the richest taxpayers, who are disqualified under the House-passed measure.

Both versions would provide tax breaks to businesses to spur equipment and other purchases.

Baucus, D-Mont., planned a Wednesday vote in his committee, and Majority Leader Harry Reid has said he hopes to have it approved by week's end. Congressional leaders are aiming to send the measure to President Bush by Feb. 15.

But the divergent plans — and bids by Senate Democrats and Republicans to swell the package with more add-ons — could drag out that schedule.

Sen. Mitch McConnell, R-Ky., the minority leader, said the Senate should simply pass the House measure, which would send it straight to Bush for his signature.

"This is not a time to get into some kind of testing of wills between the two congressional bodies. This is a time to show we can rise above partisanship, do something important, and do it quickly," McConnell said.

The House plan brought together Democrats and Republicans, both of whom surrendered cherished proposals to reach a deal.

House Speaker Nancy Pelosi, D-Calif., cautioned against adding items that could hinder an economic recovery or scuttle the bipartisan agreement.

"It's important that this bill not get overloaded. I have a full agenda of things I would like to have in the package, but we have to contain the price," Pelosi said. "We made a decision, because that's where we could find our common ground."

Republican leaders, too, described the measure as an imperfect compromise that would provide a needed jolt to the economy.

Americans "expect us to find ways to work together, not reasons to fight with each other," said Rep. John A. Boehner, R-Ohio, who forged the agreement with Pelosi in consultation with Treasury Secretary Henry M. Paulson.

"The sooner we get this relief in the hands of the American people, the sooner they can begin to do their job of being good consumers," Boehner said.

The measure would send rebates to some 111 million people, including roughly 35 million families who don't make enough to pay income taxes. Individuals with adjusted gross income of $75,000 and couples making $150,000 would get rebates equal to the taxes they paid, up to $600 for individuals and $1,200 for couples. Those making more than that would see their rebate go down by 5 percent of every dollar of income over the limits.

Taxpayers would get at least $300, even if they paid less than that in taxes — or $600 for couples. That's also the case for those who don't pay income taxes but earn at least $3,000.

All eligible people would get an additional $300 per child.

In the Senate, Baucus' proposal removes the income caps and would send rebates to some 20 million senior citizens not covered by the House plan because they don't have income.

It also extends unemployment payments for 13 weeks for those whose benefits have run out, with 26 more weeks available in states with the highest jobless rates.

The Senate measure restores a business tax break dropped during the House negotiations that would permit corporations suffering losses now to reclaim taxes previously paid.

Both packages include roughly $50 billion worth of tax incentives for businesses to invest in new plants and equipment.

Baucus said he, too, wanted to avoid burdening his proposal with extras.

"The more that this is kept slimmed down and it's clean and simple, the better. I do not want it loaded up with lots of other provisions," said Baucus, D-Mont. "Nobody wants to be held responsible for stopping this from going through."

http://news.yahoo.com/s/ap/20080129/ap_on_...conomy_stimulus

[AnewKINDofFEELIN 0]

I think I'll use it to buy a new mattress and boxspring.

[AnewKINDofFEELIN 0]

I just created a poll about the package:

http://www.visajourney.com/forums/index.php?showtopic=107620

[Ban Hammer 13,394]

The measure would send rebates to some 111 million people, including roughly 35 million families who don't make enough to pay income taxes.

that's the part i wonder about. how can you get a "rebate" when you didn't pay anything in taxes?

[Bootylicious!! 2]

$hit, mine will just go back to them to pay the taxes we'll owe after Javi gets his 1099. I won't be able to buy a d@mn thing with mine.

[Alhamdulillah 0]

Soooo when should I expect my check? I heard it would be mid-summer, is that true?

[one...two...tree 2,762]

"We're all Keynesians now." ~ Pres. Richard Nixon

[mawilson 2,133]

You said "stimulus". Hehehehehe.

[Empress of Groovy 373]

$hit, mine will just go back to them to pay the taxes we'll owe after Javi gets his 1099. I won't be able to buy a d@mn thing with mine.

Yeah, I'm in the same boat. It's my own fault because I never pay enough quarterly, but...

[Bootylicious!! 2]

$hit, mine will just go back to them to pay the taxes we'll owe after Javi gets his 1099. I won't be able to buy a d@mn thing with mine.

Yeah, I'm in the same boat. It's my own fault because I never pay enough quarterly, but...

Well I'm not sure what his boss did is actually legal. They took taxes out of his checks through out the year. Then once it came tax time told him he was getting a 1099 and they'd give him the money back they had taken out. Sounds good, but then he ends up paying all of his taxes instead of just part of them. So we actually end up having to pay more than what the check is they give us back for what they had taken out. If we had known this is what was going to happen we could have been saving or paying quarterly.

[Amby 490]

I want some money...I could use some

[AnewKINDofFEELIN 0]

$hit, mine will just go back to them to pay the taxes we'll owe after Javi gets his 1099. I won't be able to buy a d@mn thing with mine.

Yeah, I'm in the same boat. It's my own fault because I never pay enough quarterly, but...

Well I'm not sure what his boss did is actually legal. They took taxes out of his checks through out the year. Then once it came tax time told him he was getting a 1099 and they'd give him the money back they had taken out. Sounds good, but then he ends up paying all of his taxes instead of just part of them. So we actually end up having to pay more than what the check is they give us back for what they had taken out. If we had known this is what was going to happen we could have been saving or paying quarterly.

Honestly, he should contact the IRS and question the legality of what was done without his knowledge. It sounds to me like the boss was using his tax payments as capital funds, which I would have to believe is tax fraud.

[Ban Hammer 13,394]

$hit, mine will just go back to them to pay the taxes we'll owe after Javi gets his 1099. I won't be able to buy a d@mn thing with mine.

Yeah, I'm in the same boat. It's my own fault because I never pay enough quarterly, but...

Well I'm not sure what his boss did is actually legal. They took taxes out of his checks through out the year. Then once it came tax time told him he was getting a 1099 and they'd give him the money back they had taken out. Sounds good, but then he ends up paying all of his taxes instead of just part of them. So we actually end up having to pay more than what the check is they give us back for what they had taken out. If we had known this is what was going to happen we could have been saving or paying quarterly.

Honestly, he should contact the IRS and question the legality of what was done without his knowledge. It sounds to me like the boss was using his tax payments as capital funds, which I would have to believe is tax fraud.

i also wonder about that too, and if they were making any social security and unemployment payments for him. did they classify him as an independent contractor? if so, that's one way they can save money but to do it in mid-stream sounds quite flakey.

[Bootylicious!! 2]

I'm not sure how they have him classified. I know he filled out all his tax forms last year. We just assumed they would be giving him a W-2. I will definitely check into it. It just doesn't seem right to me.

[Dan J 277]

$hit, mine will just go back to them to pay the taxes we'll owe after Javi gets his 1099. I won't be able to buy a d@mn thing with mine.

Yeah, I'm in the same boat. It's my own fault because I never pay enough quarterly, but...

Well I'm not sure what his boss did is actually legal. They took taxes out of his checks through out the year. Then once it came tax time told him he was getting a 1099 and they'd give him the money back they had taken out. Sounds good, but then he ends up paying all of his taxes instead of just part of them. So we actually end up having to pay more than what the check is they give us back for what they had taken out. If we had known this is what was going to happen we could have been saving or paying quarterly.

Honestly, he should contact the IRS and question the legality of what was done without his knowledge. It sounds to me like the boss was using his tax payments as capital funds, which I would have to believe is tax fraud.

Right, i think there is something fishy about that too.

As a self-employed contractor, you are responsible for the 15% SE tax, on top of normal taxes. This is to pay for Medicare and social security.

But you can deduct a lot more expenses than you would otherwise be able to.