Stimulus Plan Vows $600-$1,200 Tax Rebates

Congress, White House Announce Deal On Tax Refunds, Business Breaks To Boost Economy

(CBS/AP)  Congressional leaders announced a deal with the White House Thursday on an economic stimulus package that would give most tax filers refunds of $600 to $1,200, and more if they have children.

House Speaker Nancy Pelosi said Congress would act on the agreement - hammered out in a week of intense negotiations and uncustomary bipartisanship - "at the earliest date, so that those rebate checks can be in the mail."

But even if Congress does act quickly, the IRS will be bogged down in April handling tax returns and probably couldn't begin to process the rebates until early May, reports CBS News correspondent Anthony Mason. Then comes the mailing, which takes eight to 10 weeks, so most people could have the checks by July.

President Bush praised the agreement at the White House, saying it "has the right set of policies and is the right size."

The rebates, which would go to about 116 million families, had appeal for both Democrats and Republicans. Pelosi's staff noted that they would include $28 billion in checks to 35 million working families who wouldn't have been helped by Mr. Bush's original proposal. Republicans, for their part, were pleased that the bulk of the rebates - more than 70 percent, according to an analysis by Congress' Joint Tax Committee - would go to individuals who pay taxes.

Individuals who pay income taxes would get up to $600, working couples $1,200 and those with children an additional $300 per child under the agreement. Workers who make at least $3,000 but don't pay taxes would get $300 rebates.

The rebates were expected to cost about $100 billion, and the package also includes close to $50 billion in business tax cuts.

The principal players in pulling the deal together were Pelosi, House Republican leader John Boehner and Paulson. The package would allow businesses to immediately write off 50 percent of purchases of plants and other capital equipment and permit small businesses to write off additional purchases of equipment. A GOP-written provision to allow businesses suffering losses now to reclaim taxes previously paid was dropped.

Pelosi, D-Calif., agreed to drop increases in food stamp and unemployment benefits during a Wednesday meeting in exchange for gaining the rebates of at least $300 for almost everyone earning a paycheck, including those who make too little to pay income taxes.

"I can't say that I'm totally pleased with the package, but I do know that it will help stimulate the economy. But if it does not, then there will be more to come," Pelosi said.

Boehner said the agreement "was not easy for the two of us and our respective caucuses."

"You know, many Americans believe that Washington is broken," the Ohio Republican said. "But I think this agreement and I hope that this agreement will show the American people that we can fix it and will serve to move along other bipartisan agreements that we can have in the future."

Paulson said he would work with the House and Senate to enact the package as soon as possible, because "speed is of the essence." But he also cautioned that "the work is far from over."

The Treasury Department has already been talking to the IRS about getting the checks out "as quickly as possible, recognizing that the tax filing season is ongoing," said Treasury spokesman Andrew DeSouza.

The rebates would phase out gradually for individuals whose income exceeds $75,000 and couples with incomes above $150,000, aides said. Individuals with incomes up to $87,000 and couples up to $174,000 would get partial rebates. The caps are higher for those with children.

"I think this is a good big first step, I think it's the right step," Mark Zandi, chief economist at Moody's Economy.com, told CBS News. "I think for many hard-pressed households, a few hundred dollars in their checking account is going to make a big difference for them."

The agreement left some lawmakers in both parties with a bitter taste, and they complained that their leaders had sacrificed too much in the interest of striking a deal. Many senior Democrats were particularly upset that the package omitted the unemployment extension.

"I do not understand, and cannot accept, the resistance of President Bush and Republican leaders to including an extension of unemployment benefits for those who are without work through no fault of their own," Rep. Charles B. Rangel, D-N.Y., the Ways and Means Committee chairman, said in a statement.

Sen. Max Baucus, D-Mont., the Finance Committee Chairman, said leaving out the unemployment extension was "a mistake," as he announced plans to craft a separate stimulus package in the Senate starting next week.

Majority Leader Harry Reid said the goal is to send the package to the White House by Feb. 15 for Mr. Bush's signature, but he noted the Senate would likely try to add more spending to the package.

"I expect that the (Finance) Committee and other senators will work to improve the House package by adding funds for other initiatives that can boost the economy immediately, such as unemployment benefits, nutrition assistance, state relief and infrastructure investment," Reid said in a statement.

Asked about this, Paulson praised Reid's leadership but said, "I don't know what he has in mind."

Mr. Bush has supported larger rebates of $800-$1,600, but his plan would have left out 30 million working households who earn paychecks but don't make enough to pay income tax, according to calculations by the Urban Institute-Brookings Institution Tax Policy Center. An additional 19 million households would receive only partial rebates under Mr. Bush's initial proposal.

Meanwhile, the housing market keeps getting uglier, reports Mason. New figures show the median price of a single family home actually fell last year for the first time since the Great Depression, while sales plummeted 13 percent - the largest decline in 25 years.

To address the mortgage crisis, the package raises the limit on Federal Housing Administration loans from $362,000 to as high as $729,750 in expensive areas, allowing more subprime mortgage holders to refinance into federally insured loans. To widen the availability of mortgages across the country, it also provides a one-year boost to the cap on loans that Fannie Mae and Freddie Mac can buy, from $417,000 up to $729,750 in high-cost markets.

[harp1963]

The America dollar is going to have the value of Monopoly money before our "leaders" are done with it. Who cares about debt, just stimulate the economy before election time. Who cares if our great grandchildren have health care?

Oh, I forgot, we don''t need to be prudent about the future when our country is being run by far right "end of the world" believers. The Mayan calender runs out in 2012, so don''t worry about the future spend all you want. Be idiots.

[kevzgrl]

Oh, goody - I can hold on to that $300 rebate and use it to pay the money the IRS will expect because of that stupid Alternative Minimum Tax, which started hitting me last year because I earn $45,000. I know they supposedly worked on some kind of fix for it this year, but I will still be over the limits I have heard mentioned, so I guess my rebate won''t have the effect they hoped - guess they should just KEEP IT, right???

[speakinup]

HARPO - any ''monopoly'' money you don''t want ?

I''m sure there are plenty of folks out there that are willing to take it off your hands.

Kinda reminds me of the old saying, "A FOOL AND HIS MONEY SHALL SOON PART WAYS."

[carolrhill]

All of this is a joke. I know what we''ll be getting 300.00 and that ought to do a lot for us. The ones with all the children will get the bulk of it.
Besides they always build people up just to break them down.
Almost everything the government does is a joke anyway but guess who gets the last laugh? I wonder?
I guess 300.00 is better than nothing at all? I just wonder with horrible war going on where are they getting this money?

[resqdiver4]

Think about it in these terms:
Tax Rebate = Taxable Income therefore the $300.00 your going to get to "stimulate the economy" is going to be added to your taxable income for the "2008" taxes. by the time your taxed at whatever bracket your in, your $300.00 will maybe buy you a tank of gas! Big stimulus! Way to go Bushey, you moron!

[slim1h2o]

Wednesday meeting in exchange for gaining rebates of at least $300 for each person earning a paycheck, including low-income earners who make too little to pay income taxes.


HHMMPPHH,,,And what about us retired people? Who survives on very little, as it is. And yet, we also pay taxes.

Well, maybe not any more, I won''t.

[ramos937]

I will take whatever is sent to me and pay off a few bills and be grateful. However, this is a bandage on a gaping wound. To cure the "injury" painful and radical steps must be taken. Ending the Iraq War would eliminate about $10 Billion per month. Closing most of our overseas bases would also eliminate many billions. The list can be endless but the politicians will never take the necessary steps.

One last vital step - No one truly knows what our true national debt is and no one really knows what our true annual deficit is. Comptroller General Walker comes close to knowing this but no one in Washington in power wants to listen to him. Until we face up to the true figures, we can never begin to solve the problem.

[micma-2009]

Todays Conservatives believe that putting more money into the pockets of the super rich is the answer to every problem. Hence the 9 trillion dollar deficit and the current recession.

[ladyephesus1]

ooohhhh, 600 bucks would be nice this summer.

:P

[mwhc1]

What a waste! Just how much money will it cost to send all of us $300?? It''s not worth it. The Government has already collected the money - use it now to fix the issues... not cover up the problems. Bush - still has not learned anything in eight years. I don''t blame bush anymore. I expect more from those who can/should question his ''thinking''.

[newz4i]

This article indicates Congress is working. Bush? He''s twiddling his thumbs waiting for a speech to be loaded into his teleprompter ... basically for him just another photo op. His suit looks nice.

[watcher269-2009]

Hey, did you see the speech that Cheney gave for the FISA bill about the Telcoms and immunity?

Cheney has a Tinky-Winky tie on. Purple! Do you believe our esteemed Vice President is flaunting Gaay Colors? How embarrassing.

[forthepeopl1]

this does nothing to help americans..it will take 3 to 4 months to get it...they should of just said anyone makeing less then 75000 a year will no longer pay fed taxes, because we get it all back anyways, this way american would have more money every week to put back into this falling country.

this is the only way they can help american..

[rowdytexan2]

OOOOOooooooooooo....$300.00!!!! I can go stock up on cigarettes!!! Oh boy! Oh boy! Or buy some more Chinese stuff down at the Dollar Store! Oh goodie!


Why is congress even considering such an assinine deal! Do they think this is going to buy some brownie points with the public?

Why aren''t they working on raising salaries, creating jobs, getting rid of this abhorrent occupation of Iraq, reforming welfare and encouraging people to work, a universal health care plan? Geezus!

Everybody already knows what Bush is...this isn''t going to buy him or the republicans brownie points!

What possible thing can this do to stimulate the economy? This is a joke!

[olebd]

Borrowed government money that will be used by many to pay back money that they themselves have borrowed. This sure seems like a weak bandage placed on the festering issues that are causing the real problems.

Another failed snap decision by the zoo monkeys in charge of the people.

[jjp735i]

Wow I can pay one and a half months heating bill!!!!
That will really jump start the economy.

Not that I am ungrateful, it''s just that what in the world do they think we will spend this little bit of help on? This one time fix will cost more than it was worth to even do.

[briannorwood]

Rebates would go to people earning below a certain income cap, likely individuals earning $75,000 or less and couples with incomes of $150,000 or less...

Great. Leaves me out, again.

[extremophil]

The world economy is shaky, and we get rebates. IS THIS A GREAT COUNTRY OR WHAT!!!

[rrman4]

Hey, Bushman, how come we retired people don''t get the same break? We don''t get an "earned paycheck", but we still pay taxes like everybody else. What a ripoff for retired people.

[bogusbones]

A placebo for the masses. No concrete plans to solidify the long term ills that face our economy. I''d like to target D.C. as a nuclear test zone and start all over. These people are useless. This plan will be paid by us and our children for years to come. Our current D.C. philosophy is get people to spend, spend, spend. What ever happened to saving? Out of Iraq, reduce military spending by half, public works projects and reduce credit card spending. Our government is writing checks and printing money is can''t cover.

[raised4952]

i think its great that our goverment forgets the pepole that now lives on social security with an income of less than $700.00 per month to struggle from month to month to live on..

[underdogus]

with the 300$ im buying a bike made in China, so I can get to work..

[catherine195]

No doubt - a fricking joke!! Yeah, a refund of $300-1200 will really pay off my bills, and oh so allow me to SPEND more to put back into the economy!! This is like stealing from Peter to pay Paul - neither one has any money - where''s Georgie Porgy getting this money from, China, Japan? Don''t think so - they''re tired of bailing us out too! It is so appaulling how much in debt the Bush Admin has put this country in, all for what, to continue sending troops to Iraq to be killed? END THE WAR NOW - maybe Bush could invest monies lost there to paying off the debt he''s created.

[micma-2009]

MAYBE IF GWB & REPUBs could have passed increases in Minimum Wage laws YEARS ago the recession wouldn''''t be happening !!!

Posted by apple2pie


Don''t you see? Putting more money into the hands of people that actually need it and will spend it goes against everything modern conservatives stand for. They believe that the sole purpose of government is to make the rich richer.

[bigley973]

Does anyone know when we would get this rebate?

[mcvet]

with the 300$ im buying a bike made in China, so I can get to work..



Posted by underdogus at 11:15 AM : Jan 24, 2008
+ report abuse

Well of course you will... can''t expect anything less from a Fascist now can we? Sieg Heil Y''all ROFLMAO

[jmhcsco]

OH!YA! $300 is really going to help the economy. I just might be able to buy a grape.
What a waist of time and effort. What a joke!
I can use it to fill my car up with gas or pay my home''s energy cost.
I''m glad to see so many of us feel the same way.

[marcodele]

Thanks again Junior!

I''m donating my check to the democratic nominee''s campaign.

[marcodele]

It''s just another sad chapter in the legacy of The PayDay Loan President. His whole life, he never saw a pot of money that wasn''t his to spend. Viola! The biggest deficit in U.S. history.

I love watching all the neocons worried to death that someone on welfare is going to get an extra loaf of bread in June. I don''t know why they''re complaining, they can buy new gun racks with their check from Junior.

[micma-2009]

ainttaken


As usual, Bush doesn''t really have a clue what to do about the mess he''s made. He''ll punt his recession, his 9 trillion dollar deficit and his 2 trillion dollar Iraq debacle to the next (Democratic) president. Then, as you said, the Republicon spin machine will blame it all on Clinton and the Democrats.

[sevenveils]

Business TAX CUTS??????
Business doesn''t pay their fair share to begin with, they have more tax breaks than the wealthiest of people.

Considering how the value of the US dollar has fallen about 47% in the last seven years and the cost of living has skyrocketed, these rebates are CHUMP CHANGE.
The rebates as they are structured aren''t helping anybody but businesses.

[mike71067]

"As usual, Bush doesn''''t really have a clue..."
-Posted by micma at 11:38 AM : Jan 24, 2008

Uh, this deal is from Bush and Pelosi. Republicans and Democrats. Ultimately, it''s all just a show. Both parties want to appear concerned for the citizens. Yes, we''ll get a check. It will be nice. But I don''t see how that will affect things in the long term.

[livermanr]

You people need to support your president. He has done a outstanding job.God puts people were he wants them. And God put George Bush as our president. If you are against Bush you are against God. That''s the way I see it.

[mike71067]

"Business doesn''''t pay their fair share to begin with, they have more tax breaks than the wealthiest of people."
-Posted by sevenveils at 11:39 AM : Jan 24, 2008

Not to shock you or anything, but not all business owners are wealthy. I co-owned a business several years ago and was barely able to scrape by, because the taxes were so high. Also remember that businesses are what create jobs, and if they have to pay high taxes, the employees are the ones who suffer.

Stop with the left-wing rhetoric. You sound like a bumper sticker on a VW bus.

[ioweign]

Does anyone know when we would get this rebate?

Posted by bigley973 at 11:18 AM : Jan 24, 2008

As soon as the lead based ink on the paper is dry...

[simonsez40]

You people need to support your president. He has done a outstanding job.God puts people were he wants them. And God put George Bush as our president. If you are against Bush you are against God. That''''s the way I see it.


LMAO! Then I''m against God because if that rhetoric is applicable I guess God put Osama and Hiler in power as well? Idiot - God also gave us a mind to make those that are criminals accountable. God might have put him in power but Bush made the choices to descieve and lie to the American people.

[slim1h2o]

You people need to support your president. He has done a outstanding job.God puts people were he wants them. And God put George Bush as our president. If you are against Bush you are against God. That''''s the way I see it.

Posted by livermanr at 11:41 AM : Jan 24, 2008

Nothing to say to that post, Except,,,ROTFLMAO!

[sevenveils]

Stop with the left-wing rhetoric. You sound like a bumper sticker on a VW bus. - mike71067

So you failed at a business. That makes you only an expert in what you learned. If you really were a small business owner you''d know small businesses don''t have the tax breaks of large corporations, of which I am really referring to here. Less than half of all startups succeed, better luck on your next try; seriously, keep trying.

Meanwhile I''m going to showing that sticker on my VW bus. Beep beep

[simonsez40]

$300 is laughable if they are really serious they''ll cut their salaries and pork barrell projects, stop their entitlement programs that specifically designed for congress (aka our Social Security) and make big corporations pay taxes like they should.........

This liberal *** is BS - the Repugs have put us in this precarious situation........now swallow what you voted for Repugs!

[donbl1]

Two courses of college level economics should be required of all citizens with a mandatory passing required to vote.

[luvny-2009]

You people need to support your president. He has done a outstanding job.God puts people were he wants them. And God put George Bush as our president. If you are against Bush you are against God. That''''s the way I see it.


--------------------------------------------------------------------------------

Posted by livermanr


SO when do they let you out?

[simonsez40]

Posted by livermanr


SO when do they let you out?

Bush just had a bowel movement.........LMAO!

[sharncedar]

"The government owes you no living and neither do the people that have worked hard to get what they have. "

Posted by commonsence1 at 11:45 AM : Jan 24, 2008


nice logic - then I guess you are not in favor of the government via the Fed giving money to banks, for example? Or the trillion dollars each year of direct payments from the government to big businesses? Because apparently the richest people in America have no problems taking government handouts in the trillions, in fact they work all day long to make sure those handouts continue. While they use much of the money and influence to fool tiny little peons lik you into thinking somehow some dumb poor guy is getting the money.

C''mon, even a kool-aid drinking republican must have a brain somewhere. If poor people and deadbeats were really getting all that money from the government, we''re talking an annual budget of 2 trillion or more, wouldn;t they become rich? That''s an extraordinary amount of money. The facts are, the people who are getting that money are exactly who logic dictates they must be - the rich. That''s why they''re rich, dummy. Crack hounds are not getting 1 trillion in government subsidies, dummy. Or they wouldn''t be crack hounds in the projects, would they, they would be more like Paris Hiliton, a refined "cocaine" user.

[ksjeff-2009]

If you screw yourself silly, have ten kids, and then complain about not being able to pay the bills, you deserve what you get. Why should I have to pay your %$#@#!&* bills? Wear a f***ing condom the next time you get it on.

[mike71067]

"If you really were a small business owner you''d know small businesses don''t have the tax breaks of large corporations, of which I am really referring to here."
-Posted by Sevenveils at 11:53 AM : Jan 24, 2008

And large corporations are the ones that employ lots of people. Your hatred for large businesses is silly, since they provide lots of jobs. But I suppose that would be a difficult concept to understand while you''re dropping acid at Grateful Dead concerts during most of the year.

[lundjohn]

Do retirees get any money? I worked for the goverment and they tax my retirement. Just curious

[mike71067]

If you''re not a liberal when you''re in your 20''s, then you have no heart.

If you''re not a conservative when you''re in your 30''s, then you have no brain.

[radiob-2009]

These are temporary solutions for long term economic problems. Require business that receive a tax break to invest soley in the US and the creation of US jobs. Give tax relief to any corporation that inside of the US will mass produce alternative energies along with the conversion kits for them and stop exporting all of our jobs directly or indirectly through secondary partners.

[slim1h2o]

Do retirees get any money? I worked for the goverment and they tax my retirement. Just curious

Posted by lundjohn at 11:58 AM : Jan 24, 2008

Not according to the article,,I guess we don''t count.
We''d just owe more Tax money anyways.

[donbl1]

Radiob, America has about 300M people. The WORLD has about 7B people.

America exports $148B/month.

America is not self sufficient in natural resources.

If we did not sell to the other 6.7B people, we could not afford to buy the natural resources which are more than just oil.

Just my thoughts.....