Bush and the stimulus package
- By Tomaso Veneroso
- Published 02/25/2008
- On Taxes
- Unrated
Bush has signed few weeks ago a multi billion dollar economic rescue package.
This will mean that a lot of American families will have a rebate between $300 and $1200.
The partisan war seems to get a brake when it comes to agree on measures to relive the potential recession.
Rebates are going out in May for low-income people and Social Security veterans. A lot of incentive ( tax breaks) for business that invest in plant and equipment are in the plan also.
Most taxpayer will get rebate between $600 to $1200 dollars with additional $300 per child.
The higher-income ones ( making more than $75,000.00 or couple exceeding $150,000.00 ) are going to get smaller rebates ( $50 less per $1000.00 that they make).
Economic analysts generally agrees that this economic package will help Economy only if the rebates will stimulate the spending and therefore help the downturn.
Congress says that if this " stimulus" is not enough they are ready to pump more money .
Bush says that the current measure should have " enough impact".
Congressional leaders are working on other measures, beside the " Economic Stimulus Plan" to rescue transportation spending,unemployment aid housing crunch that's at the base of the current Economic situation.
Economist are concerned that most of the rebates will be used by consumers to pay bills rather than to spend the money and spur growth.
The pools says most of the people will pay bills with the tax rebates.
The last time that government sent out rebate in 2003 consumers spend a little less than one third on the first six months and about two third in the first year.( Cfr: University of Michigan Survey of Consumer)
After rebates were sent out in 2001 , just 22% said they would mostly spend them, rather than saving or using it to pay off debt,and only one-third of the rebate was spent in short run . ( Cfr:University of Michigan Survey of Consumer)
This will mean that a lot of American families will have a rebate between $300 and $1200.
The partisan war seems to get a brake when it comes to agree on measures to relive the potential recession.
Rebates are going out in May for low-income people and Social Security veterans. A lot of incentive ( tax breaks) for business that invest in plant and equipment are in the plan also.
Most taxpayer will get rebate between $600 to $1200 dollars with additional $300 per child.
The higher-income ones ( making more than $75,000.00 or couple exceeding $150,000.00 ) are going to get smaller rebates ( $50 less per $1000.00 that they make).
Economic analysts generally agrees that this economic package will help Economy only if the rebates will stimulate the spending and therefore help the downturn.
Congress says that if this " stimulus" is not enough they are ready to pump more money .
Bush says that the current measure should have " enough impact".
Congressional leaders are working on other measures, beside the " Economic Stimulus Plan" to rescue transportation spending,unemployment aid housing crunch that's at the base of the current Economic situation.
Economist are concerned that most of the rebates will be used by consumers to pay bills rather than to spend the money and spur growth.
The pools says most of the people will pay bills with the tax rebates.
The last time that government sent out rebate in 2003 consumers spend a little less than one third on the first six months and about two third in the first year.( Cfr: University of Michigan Survey of Consumer)
After rebates were sent out in 2001 , just 22% said they would mostly spend them, rather than saving or using it to pay off debt,and only one-third of the rebate was spent in short run . ( Cfr:University of Michigan Survey of Consumer)
