Recession tax legislation: Does it work?
Rebate checks mean more work for IRS

Rough rebate plan reached

The House leadership has worked out a basic tax rebate plan, according to the Wall Street Journal. It's the first step in getting checks ranging from $300 to $1,200 in taxpayer mailboxes in a couple of months.

The newspaper says that House Speaker Nancy Pelosi and House Minority Leader John Boehner reached an "agreement in principle" in meetings last night on a bill to provide roughly $100 billion in tax rebates to individuals and about $40 billion in tax breaks for business.

The rebates would be at least $300 for anyone who earned at least $3,000 in 2007, with $300 bonuses for children. People who owe income taxes would receive more incrementally, up to $600 for individuals and $1,200 for couples.

The WSJ says rebates would be available to those below a certain income cap, likely $75,000 adjusted gross income for individuals and $150,000 for families.

But some folks already have a problem or two with the preliminary plan. Some lawmakers, says the paper, are concerned that the agreement does not include added spending on unemployment benefits or food stamps.

The tricky, sticky issue of how to make such tax paybacks more effective, which I touched on in my earlier blog post on this topic, also is examined in this post by Howard Gleckman of TaxVox -- Stimulus: Who Should Get a Rebate?

More news reports: Other news outlets reporting on this first cut at a rebate plan are the New York Times, Bloomberg, the Washington Post and the AP.

 

 

Comments

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Prince of Thrift

wow, maybe I would get the rebate. Then again, maybe the IRS will credit my debt instead, who knows.

I still like Mike Huckabee's fair tax plan.

http://snipurl.com/1y5sp

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