What is the economic stimulus package?
The current economic downturn is causing real pain for Iowans and people all across the country. For this reason, I supported efforts to craft an economic stimulus bill aimed at cushioning the effects of this downturn. The bill has many components, but the most talked about are “tax rebate checks” that will be sent to most Americans who file tax returns this year. Who qualifies for a tax rebate check? In order to qualify, individuals or families must have made at least $3,000 last year in “qualifying income,” except for those with very high incomes. Beyond just earned income, this qualifying income can include money from Social Security benefits, Veterans Affairs benefits and Railroad retirement benefits. This ensures that our retired seniors and veterans get help too. Iowans with those types of income must file a tax return noting it even if they do not need to do so for regular tax purposes. In addition, individuals must have a valid U.S. Social Security number and cannot be claimed
The economic stimulus package is a change in the tax code that will eliminate the 10% bracket from 10% to zero for the first $6,000 of taxable income in 2008. But the government decided to do this based on tax filer’s 2007 taxes so they could distribute this money so tax payers would spend it now and (hopefully) boost the economy.
How much does it represent? Some of these questions were answered in a direct letter to the public from President Barack Obama. The letter was first printed in the Washington Post. by Barack Obama By now, it’s clear to everyone that we have inherited an economic crisis as deep and dire as any since the days of the Great Depression. Millions of jobs that Americans relied on just a year ago are gone; millions more of the nest eggs families worked so hard to build have vanished. People everywhere are worried about what tomorrow will bring. What Americans expect from Washington is action that matches the urgency they feel in their daily lives — action that’s swift, bold and wise enough for us to climb out of this crisis. Because each day we wait to begin the work of turning our economy around, more people lose their jobs, their savings and their homes. And if nothing is done, this recession might linger for years. Our economy will lose 5 million more jobs. Unemployment will approach doubl
On Tuesday, February 17, 2009, President Barack Obama signed into law a $787 billion stimulus bill that many hope will put an end to what some are calling the worst economic crisis since the Great Depression. Its passing in Congress proves a huge triumph for Obama, who lobbied for the bill during his first month of presidency. Through unemployment benefits, food stamps, medical care and job retraining, the legislation supplies billions of dollars to help those affected by the recession. The package is said to save or generate 3.5 million jobs, and its tax cuts are projected to help 95% of all Americans (shown through tax credits of $400 for individuals and $800 for couples). Other highlights and benefits of the stimulus bill include a $54 billion fund to compensate for state budget cuts that might otherwise have been used toward schools, $87 billion to aid states in administering Medicaid, $42 billion for energy-related investments, and $9.2 for environmental projects. Even though the
On February 7, 2008, Congress passed the Economic Stimulus Act of 2008. It was signed into law by the president on February 13, 2008. The Economic Stimulus Act provides lower-income and middle-income working families, and certain seniors and disabled veterans, with a one time tax rebate, or “stimulus check”.
