Bush Signs Bill, Checks In Mail By Spring

Under Economy-Rescue Bill, Millions Of Americans Will Get Rebates From $300 To $1,200

(CBS/AP)  The checks aren't in the mail, but they will be soon.

President Bush signed legislation Wednesday to rush rebates ranging from $300 to $1,200 to millions of people, the centerpiece of government efforts to brace the wobbly economy. First, though, you must file your 2007 tax return.

More than 130 million people are expected to get the rebates, starting around May. Congress, Bush, the Federal Reserve and Wall Street are hoping the money will burn such a hole in people's pockets that they won't be able to resist spending it. And the spending is supposed to give an energizing jolt to a national economy that is in danger of toppling into a recession if it hasn't already.

Whether people actually spend the money remains to be seen. A recent Associated Press-Ipsos poll indicates most people have other plans. Forty-five percent said they planned to pay off bills, while 32 percent said they would save or invest it. Only 19 percent said they would spend their rebates.

The measure Mr. Bush signed — a $168 billion rescue package passed with lightning speed by Congress last week — includes not only rebates for individuals but also tax breaks for businesses to spur investment in new plants and equipment. That, too, would help bolster U.S. economic activity. The package also contains provisions aimed at helping struggling homeowners clobbered by the housing collapse and the credit crunch refinance into more affordable mortgages.

Flanked by congressional leaders of both parties, Mr. Bush was quick to share the political credit with them for enacting the stimulus bill, reports CBS News White House correspondent Mark Knoller.

The emergency plan marked a rare moment of cooperation among political rivals fearful that an ailing economy during an election year would invite voter retaliation.

Bush, who called the measure "a booster shot for our economy," praised the bipartisan cooperation. "We have come together on a single mission — and that is to put the people's interests first," he said.

Who gets a rebate? Most people who pay taxes or earn at least $3,000, including through Social Security or veterans' disability benefits. Singles making more than $75,000 and couples with income topping $150,000, however, will get smaller checks, up to the top limits for any rebate: incomes of $87,000 for individuals and $174,000 for couples.

To get any rebate, you must file a 2007 tax return and have a valid Social Security number. If you already filed your 2007 return, the IRS says you don't need to do anything extra.

Most taxpayers will receive a check of up to $600 for individuals and $1,200 for couples, with an additional $300 for each child.

People earning too little to pay taxes but at least $3,000 — including elderly people whose only income is from Social Security and veterans who live on disability payments — will get $300 if single, or $600 if a couple.

The IRS will send out rebates — by mail or by direct deposit into your bank account — through the late spring and the summer. The rebates come in addition to any regular tax refund.

To pay for the rebates — which are estimated to cost about $117 billion over the next two years — the government will have to borrow more money, enlarging the budget deficit.

The Bush administration and some private economists are hopeful the rebates, tax breaks and aggressive interest rate reductions by the Federal Reserve will help the country narrowly dodge a recession. An increasing number of economists, however, believe the country has already fallen into its first recession since 2001, and they are simply hopeful the rescue package will limit the damage. Most people — 61 percent — say the economy is now in a recession, according to the AP-Ipsos poll.

"I do think this will give the economy a shot of adrenaline," said Stuart Hoffman, chief economist at PNC Financial Services Group.

The National Bureau of Economic Research, a private research organization, looked at what people did with their 2001 rebates. The study found that "households spent about 20 to 40 percent of their rebates on nondurable goods" — which can include things like food and clothing — in the first three months. They spent roughly another third in the following three months.

With the current stimulus, the economy will log growth in the range of 2.25 percent to 2.50 percent in the second half of this year — roughly one full percentage point higher than without the bracing tonic, Hoffman estimated. That would be closer to a more normal rate of around 3 percent, he said.

That in turn should encourage businesses to step up hiring. Nervous employers cut 17,000 jobs in January, the first nationwide loss of jobs in more than four years.

Edward Lazear, chairman of the White House Council of Economic Advisers, predicted, "The stimulus will have the effect of increasing jobs by about half a million above the number that would have been the case in the absence of that."

Still, even with the rescue efforts, some analysts fear the economy could backslide and flirt with recession again in 2009.

To help the severely depressed housing market, the stimulus package would raise temporarily to as high as $729,750 the limit on Federal Housing Administration loans and also raise the cap on loans that mortgage giants Fannie Mae and Freddie Mac can buy.

Raising those limits, should provide relief in the market for "jumbo" mortgages — those exceeding $417,000. The credit crunch hit that market hard, making it very difficult, if not impossible, for people to get those loans. That has plunged the housing market even deeper into turmoil.

House Speaker Nancy Pelosi of California said the provisions will provide "families a second chance at the American dream of homeownership by helping them refinance their mortgages and avoid foreclosure."

[dogband]

Mine is going in the bank.

The rest of you can stimulate the Chinese economy if you wish.

My childrens, children [who have yet to be born] will be happy to pay for this and the war -- I''m sure of it.

I''ll ask them when they are born, but of course, their answer at that time will be meaningless

W = WORST PRESIDENT IN THE HISTORY OF AMERICA IN EVERY ASPECT

You folks keep holding onto the E VAN Gellical Republican party.

[dogband]

Mine is going in the bank.

The rest of you can stimulate the Chinese economy if you wish.

My childrens, children [who have yet to be born] will be happy to pay for this and the war -- I''m sure of it.

I''ll ask them when they are born, but of course, their answer at that time will be meaningless

W = WORST PRESIDENT IN THE HISTORY OF AMERICA IN EVERY ASPECT

You folks keep holding onto the E VAN Gellical Republican party.

[liberalme]

Bush called the measure "a booster shot for our economy" to stave off a recession.

Any idiot could see getting out of Iraq and saving "trillions" would be a better start to "boost" our economy--or perhaps-stop "outsourcing" jobs?

As far as I can see Nancy Pelosi is just another Bush bootlickin muck raker--out with all of them.

And lest we forget--this is "income" when we file next year. hahahaha

[random_radar]

It''s a crime to bribe politicians, but it is good business for politicians to bribe the citizens.

Let the printing presses roll--a little inflation during the election year, but the pain comes later.

[demwatcher]

Typical Lib rants. Nothing that President Bush signs makes you happy, regardless if it was conceived by the Democrats or Republicans.

Do you want some cheese with that whine?

[demwatcher]

"Any idiot could see getting out of Iraq and saving "trillions" would be a better start to "boost" our economy--or perhaps-stop "outsourcing" jobs?

Posted by liberalme at 03:19 PM : Feb 13, 2008"

That explains how you spotted it so quickly.

That money would not go to boost the economy. Congress would just use it to re-fill their "pork" barrels.

Anyone with intelligence can see that.

[dfwcane]

You live eight feet below sea level, and don''t buy flood insurance.
The Government bails you out.

You don''t get a good education so you can''t get a good job.
The Government bails you out.

You don''t comply with our laws; so you enter illegally, then demand equal rights.
The Government bails you out.

You don''t purchase health insurance for your family, and then somone get ill.
The Government bails you out.

You get greedy and purchase more house than you can afford; then the markets turn and you may lose your home.
The Government bails you out.

When did the Government become a Charity?

[dfwcane]

The purpose of the rebate is to put more money into circulation to help the economy.

Currently we have billions of dollars being earned here and then sent to Mexico.

What if that money was spent here instead of exported.

[variant_530]

Right on dfwcane...

[danstoned]

Posted by dfwcane
When did the Government become a Charity?

When the party in the White House has no respect for the American system, so as a last ditch effort to save their failed administration, they raise the National debt another $1 TRILLION, drop interst rates to screw those living on fixed incomes, bailout banks that were so full of greed that the Republicons print money more causing even worse hyperinflation to save face. It is the Republicon way!

[nolalou]

DemWatcher, you want some brains with that rant, since you apparently don''t have any! Anybody who defends anything Bush does, has his head up his butt!

[sonja44-2009]

I should know this, but what did W study in college?

[missingamerica]

''Bush called the measure "a booster shot for our economy" to stave off a recession.''

This is going to make the economy all better, and help the middle class and poor recover from the concerted attacks of the corporations and the Republicans?

Criminy, I''m glad Bush isn''t my doctor. If this is any clue, he probably thinks putting the gal on top prevents pregnancy.

(Gravity and all that, don''t ya know...)

[ddnt]

DO NOT SPEND THE CHECK, PLEASE!!!!!!!!!!!

Would you please do a service to readers that these are checks ARE NOT free money? They are advance tax credit for 2008, so many recipients may have to pay more taxes if they owe IRS more in 2008.

I''ve read too many articles about the rebate checks, but so far only MSNBC did allude to the tax credit.

[underdogus]

pinto fer sale!! good gas mileage...

[walt1944-2009]

The Great Emperor Bush has sign the supposed economic "stimulus" bill which will, supposedly rescue the economy from dropping into recession (for which it will have little impact since we are there already!).

Of course, the Great Emperor is also pleased because now business corporate profits will rise, corporate bottom lines will be rosy again, and those wealthy who will get rebates can add them to their bank accounts. Since there are no plans to further rescue the economy through additional steps (such as curbing corporate price gouging, shutting down "usuery fees" like bank overdraft charges, ATM fees, credit card late and over limit charges, etc.), once the rebate money is spent, the average citizen of the USSA will be back at "ground zero" right where he was before!

Another problem solved (??????) by the mind-blowing intelligence of the Great Emperor Bush II!

SIG HEIL, BUSH!!!!

[mcvet]

And that my demotard friends is how our economy will improve...so simple even a Barack should understand...!


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Posted by badaxmofo at 04:37 PM : Feb 13, 2008
+ report abuse

Yeah right! The Nazi Party and the Fuhrer were handed a government with a Balanced Budget AND a Surplus and you Bootlickers have the nerve to even comment on what Democrats MIGHT do? ROFLMAO Now THAT is funny! Sieg Heil Bush. You freaks aren''t the sharpest tools in the old shed now are ya? ROFLMAO How many times have you losers bought this "Well Cut Taxes, Cut Spending and balance the budget" line? It''s not embarrassing to buy it once... a little twice, but to buy the same tired old LIE over and over... ROFLMAO

[hungry1968]

And that my demotard friends is how our economy will improve...so simple even a Barack should understand...!

Posted by badaxmofo at 04:37 PM : Feb 13, 2008



The conforming loan limit is currently $417,000. How is raising this limit going to help the economy? The rates that are already on paper aren''t going to change - this is only going to affect the wealthy that are buying new homes that meet the GSE guidelines.

Only the rich are going to benefit from this, unless you think that the lower or middle classes can afford houses that cost more than $417,000.

DUH!

[underdogus]

...except when hit from the rear.
Posted by USAyesterday ..ha haa brings back good memories huh? haa 1974....

[myidoncbs]

"I should know this, but what did W study in college?"

He didn''t actually STUDY anything. He was a party guy, drunk and chasing skirts all the time. But Yale gave him a degree in History and and Harvard gave him an MBA, both degrees due entirely to his political connections.

The fact that, after getting his MBA, he managed to lose money in the oil business at a time when everybody else was making hoards of moolah from Texas oil should disprove any idea that he''s any kind of "businessman". And his performance as prezdent proves that he never read or understood any history.

[byeneocons]

It is only fitting that Bush got elected by promising everyone a free check, and he''s sending them all one on his way out of office.

What a mess he has left us.

[trillion1]

Calling this a stimulus has to be a joke.

[byeneocons]

MyIDonCBS: Don''t forget, he was rejected by UT Austin Law School when he applied there. His grades weren''t good enough, and they didn''t care who his daddy was.

[cosmicfluke]

you know, I''m broke, could always use $300, but this is stupid. What''s giving a billion dollars in beer money going to do for the economy?
this guy would be a joke if he weren''t so scary.
Where does he get his economic advice? His dog?

[klingon69]

Criminy, I''''m glad Bush isn''''t my doctor. If this is any clue, he probably thinks putting the gal on top prevents pregnancy.

(Gravity and all that, don''''t ya know...)
Posted by ibsteve2u at 04:28 PM : Feb 13, 2008
ROTFLAMFAO

[ssm9451]

Now, everyone will have beer and cigarette money.

[erniepf]

Beer''s a good choice, and I''ll donate my leftover pennies to the copper industry.

[Marie Zarankevich]

Bush has not done one, single thing to improve anything within the confines of America''s borders during his presidency. I hope he does not imagine that giving everyone a few dollars is going to help that image of him. He has really been a disaster as president. We''ve all suffered as a result. This country has suffered. Our soldiers have suffered. Now, the whole world is suffering, from the fallout of all this suffering. One might think that Osama bin Laden planted HIM in the White House!

[boston1954]

It seems to me they tried this before. Our family got $56.00. That is not even a weeks groceries.

[Marie Zarankevich]

Klingon69 -

I ''m not sure, but I don''t think he believes in gravity.

[canyoutellme-2009]

And that my demotard friends is how our economy will improve...so simple even a Barack should understand...!

Posted by badaxmofo at 04:37 PM : Feb 13, 2008



The conforming loan limit is currently $417,000. How is raising this limit going to help the economy? The rates that are already on paper aren''''t going to change - this is only going to affect the wealthy that are buying new homes that meet the GSE guidelines.

Only the rich are going to benefit from this, unless you think that the lower or middle classes can afford houses that cost more than $417,000.

DUH!


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

Posted by hungry1968 at 05:19 PM : Feb 13, 2008
+ report abuse
================================================

hungry1968, with all due respect, you are incorrect. Most of the larger metropolitan areas have homes well above 417,000 for a tiny tiny home and people are struggling big time to pay for those mortgages when they have to get jumbo loans at insane interest rates or do a split 80/15 loan like ihad to where the 15 is at a high interest rate (mine isn''t too bad). So you have 2 and 3 income families paying for the mortages on those homes. I live in the SF bay area where the median home price is 600K for a 3 bedroom 2 bath 1100 sq foot home.

[rushlimpdrug]

Ok everybody, let''s go get some big macs.

Uh! Uh! How bout some chineeze?

What the helll, it''s free money let''s get both.

Is it here yet?

[neobrian-2009]

Badbrainscellfo
Are Really you really as stupid and idiotic as you sound? Or are you just brain-washed? I have Never heard such totally retarded rhetoric in my whole life.
Save your energy,patch the roof of your camper or go back to Mickey Dees and see if they`ll give you another chance.

[rochest]

the rebate is meant to stimulate the economy---I just hope all those folks will remember to buy American not Chinese we don''t need to stimulate trade deficit. I certainly would like to see more products labeled made in America.

[andor3]

TheGateway1 said: "...You dare spout off like this, [remainder of anti-American rant deleted]..."

Yes they do. This is America. That is what loyal Americans do. It is free speech and defending it and the other tights we hold dear. Gateway, What country do you call your own and what do you defend when you are not trying to repress the rights of others?

[rowdytexan2]

Enjoy the little loan from the Shrub...be aware that it will have to be paid back. China''s interest rate on it is pro''bly pretty high.

[andor3]

by ddnt1980 said: "... checks ARE NOT free money? They are advance tax credit for 2008, so many recipients may have to pay more taxes if they owe IRS more.."

That is not true. The checks will be a payment that reduces your tax bill on 2007 income. So it will either reduce your bill or increase your refund. It is exactly like getting a check in the mail made out to you and you can (indeed are hoped to) spend the money any way you like.

Of course, a check from the government IS a check from the people and does have to be paid back in the long term, but that is a different discussion for the economists and politicians.

[hungry1968]

hungry1968, with all due respect, you are incorrect. Most of the larger metropolitan areas have homes well above 417,000 for a tiny tiny home and people are struggling big time to pay for those mortgages when they have to get jumbo loans at insane interest rates or do a split 80/15 loan like ihad to where the 15 is at a high interest rate (mine isn''''t too bad). So you have 2 and 3 income families paying for the mortages on those homes. I live in the SF bay area where the median home price is 600K for a 3 bedroom 2 bath 1100 sq foot home.

Posted by CANYOUTELLME at 06:20 PM : Feb 13, 2008





It still doesn''t support badaxmofo''s convoluted argument. He was, and is still wrong. Yes the housing prices in SF and nearby areas like Tracy, Modesto, etc are incredibly high, but you have to admit that those are the exceptions in the US housing market, and not the rule of thumb.

My 1870 sq. ft. home on 3/4 acre near Buffalo, NY cost us $80,000 3 years ago. Is the $417,000 really going to affect anyone in my area?

Stimulus, shimulus - it''s a sham. It''s only driving the nation farther into debt.

[cyberus-2009]

***********
the rebate is meant to stimulate the economy---I just hope all those folks will remember to buy American not Chinese we don''''t need to stimulate trade deficit. I certainly would like to see more products labeled made in America.

Posted by Rochest at 06:47 PM : Feb 13, 2008
*************

Hahahahaha you are a dreamer.
Not to be rude but you do know that Wal-Borg will be offering special deals if you pay with your rebate check don''t you?

[rowdytexan2]

Enjoy the little loan from the Shrub...be aware that it will have to be paid back. China''''s interest rate on it is pro''''bly pretty high.


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Posted by RowdyTexan2 at 07:06 PM : Feb 13, 2008

Oh, and be sure and go buy some cheap Chinese manufactured krap with it, so we''ll owe them some more on the trade deficit.

[dsproull]

Isn''t this a Kick! Bush and his Oil cronies steal Millions and Millions from us at the gas pumps and now Charity comes back to us. He''s something!!!!!!!

[rhs648]

With the high cost of health care, high taxes, and exorbitant prices on homes, I often wonder how Americans would fare if President Clinton hadn''t opened trade with China. Cheap prices for goods made in China have helped keep American households afloat. Now we need "tax rebates" to stimulate the economy. Too bad we can''t import cheap health care from China. On the other hand, government insurance may give us inferior coverage at higher prices as we insure those who don''t have health insurance. Is there really a free lunch or do we just want to believe that there is something called a free lunch?

[rhs648]

Isn''''t this a Kick! Bush and his Oil cronies steal Millions and Millions from us at the gas pumps and now Charity comes back to us. He''''s something!!!!!!!

Posted by dsproull

There is only one thing wrong with your sarcasism. It is missing solutions. Perhaps it is better to try than do nothing at all.

[rowdytexan2]

Too bad we can''''t import cheap health care from China. On the other hand, government insurance may give us inferior coverage at higher prices as we insure those who don''''t have health insurance.

You are already covering their health cost with your tax dollars. And on top of that you are paying huge insurance premiums so insurance company CEO''s can make millions, and their shareholders get profit off people''s suffering also.

A national health trust paid for by everybody can hold health care to costs and salaries, and save us billions! And make the pharmaceuticals have to bid to provide their krap!

[dsproull]

Isn''''''''t this a Kick! Bush and his Oil cronies steal Millions and Millions from us at the gas pumps and now Charity comes back to us. He''''''''s something!!!!!!!
Posted by dsproull

There is only one thing wrong with your sarcasism. It is missing solutions. Perhaps it is better to try than do nothing at all. Posted by rhs648 at 07:30 PM : Feb 13, 2008.
SARCASISM? TRUTH, PERIOD. SOLUTION? REFUSE TO DRIVE EXCEPT FOR EMERGENCY. iF WE WOULD HAVE BOYCOTTED RIGHT UP FRONT THIS WOULD BE A DIFFERENT STORY.

[rhs648]

A national health trust paid for by everybody can hold health care to costs and salaries, and save us billions! And make the pharmaceuticals have to bid to provide their krap!

Posted by RowdyTexan2

Insurance payments to doctors and hospitals are based upon medicaire payments set by the federal government. Insurance companies generally pay 40 to 80 per cent of what medicaire payments are set at. How then will universal or government insurance save us money? The reality is that it won''t if we extend insurance to everyone. Chances are, insurance companies will make out like bandits. If you think insurance companies are too wealthy now, just wait until we have universal health insurance. The result will be wealthier insurance companies, wealthier doctors, wealthier hospitals, wealthier pharmacutical companies, and wealthier lawyers. The rest of us will have rationed health care and higher premiums.

[hopesalive-2009]

This is just another example of short term solutions for long term problems, and not much of a solution at that. If he really wanted to help he would put the large companies like Exxon, and other oil companies that are making record profits, to the fire for the out of control fuel prices that are burdening our economy.

I would rather them take my $600 and put it towards educating our children so that someday maybe they will grow up to be the intelligent leaders we are missing today.

[rhs648]

...And make the pharmaceuticals have to bid to provide their krap!

Posted by RowdyTexan2

It is only "krap" if you don''t need it. If your life/health depends on it, it is "gold".

[rhs648]

As far as I''''m concerned, the people in this country should use what little power we have left and NOT vote for any of the incumbents!!!

Posted by truth-hurts

You present some good points. The only problem is that those who replace incumbants are often just as bad or worse. People who run for office often have their own agendas and care little for issues outside their agendas.

[hungry1968]

You present some good points. The only problem is that those who replace incumbants are often just as bad or worse. People who run for office often have their own agendas and care little for issues outside their agendas.

Posted by rhs648 at 08:04 PM : Feb 13, 2008




The other part of that, is that you''ll end up turning over so many candidates, that in a few years you''ll have no good candidates left.

Can you imagine a Mike Gravel vs. Rudy Giuliani presidential contest?

Holy cow -- just set Washington DC on fire if that day ever comes!!!