What's In The Stimulus For Workers

(CBS)  For restaurant owner Tom Glascow, and for most Americans, the new stimulus package serves up a variety of tax cuts, CBS News congressional correspondent Nancy Cordes reports.

"The bottom line is every little bit will help," Glascow said.

The biggest bit is a $400 credit for almost all workers. That works out to about $13 a week, which may not sound like much, but consider this: "Basically what does my business good is people with disposable income that can spend a little extra on lunch on a daily basis," Glasgow said.

Americans will also get more tax breaks for making big purchases - up to $8,000 for first-time homebuyers. New-car buyers can deduct the sales tax and the college tax credit will jump from $1,800 a year to $2,500.

But the biggest winners may be low-income workers, like Glascow's eight employees. The bill will give workers making as little as $3,000 a year a check of $1,000 per child, and gives a one-time payout of $250 to social security beneficiaries.

"The poor spend almost all additional money that they have coming in," Williams said. "They have lots and lots of needs, relative to their incomes. They need every dollar they can have and a new dollar in the door goes out pretty quickly."

But the stimulus bill does little to spur small business owners like Glascow to add to their payroll.

"President Obama during the campaign proposed a $3,000 refundable tax credit for any business that hired an additional worker," Williams said.

When he was on the campaign trail, Mr. Obama told small-business owners: "You are going to get a tax break!"

"But that's been dropped, it's not part of the stimulus package," Williams said.

And in today's environment, it's going to take a lot to convince employers to start hiring again.

[boxcarbetty1]

In the state of Louisiana our Govenor decided that we the poor people do not need extended unemployement. Oh I forgot only the rich or poor welfare people are helped forget about the middle class that is now the poorest of the people. That decision should not be left for one person to decide. Bobbie Jindal made that decision well he does not speak for me.

[boxcarbetty1]

Our government gave billions of dollars to rescue the rich, he gave us 13 dollars a week, what a slap in the face.

[rhs648]

I would like to know why people who are currently on unemployment benefits have to pay Federal Income Tax on unemployment benefits. Does not seem fair to them. When Treasury Secretary Paulson revised the tax code for Wells Fargo to purchase Wachovia, and last night the news said the current stimulus package has a 10 million tax break for GMAC. So why does the bill give a break to the Americans on unemployment an not collect Federal income tax on 2008 unemployment benefits?


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Posted by varovefr

Virtually all income is taxable including gambling winnings, tips, wages, salaries, and commissions. There may be some exceptions such as disability income in some instances. The taxation of income from unemployment is part of the tax codes. One could argue that unemployment income should be taxed like any other income.

[varovefr]

I would like to know why people who are currently on unemployment benefits have to pay Federal Income Tax on unemployment benefits. Does not seem fair to them. When Treasury Secretary Paulson revised the tax code for Wells Fargo to purchase Wachovia, and last night the news said the current stimulus package has a 10 million tax break for GMAC. So why does the bill give a break to the Americans on unemployment an not collect Federal income tax on 2008 unemployment benefits?

[rhs648]

Maybe Madoff was doing the "books" that year...


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Posted by rudedogrulz

rudedogrulz - I''m beginning to think that we had the same economics professors in college.

[rhs648]

70,000? Really that''''s not as huge deficit unless it''''s a non-profit organization


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Posted by rudedogrulz

Hi rudedogrulz. You are correct. It is a small non-profit organization and $70,000 isn''t a huge amount of money. However, this organization has @ 300 hundred members who have pumped their heart and sole into the organization for almost 100 years. Certainy it is peanuts when compared to General Motors or our economy.

[rhs648]

If the surpluses were real, why didn''t we fix social security, medicare, and medicaid? Were the surpluses real or were the surpluses the result of statistical manipulation? If there were surpluses, the social security trust fund could have been replenished for guture generations. Are we dealing with funny money, numbers that look good on paper if the right scenarios are met, and are people playing mind games with us?

[rhs648]

I belong to an organization that is running a $70,000 deficit and will not be able to meet its payroll later in the year. It appears that raising additional money is not possible at this time. During a discussion, I suggested that we might have to terminate some of our paid people. You would not believe the booing. Drastic? Yes, but we still haven''t found a solution.

[misha128-2009]

Posted by WiccaOne at 03:59 PM : Feb 13, 2009

ALL HAT NO FACTS TEXAN spamming more lies.

Either their was a surplus based on the limited government definition of the budget or BUSH 43, Bush 41, Reagan followed by Clinton were THE BIGGEST DEFICIT spenders in the history of the country. Facts Rowdy refuses to accept.

[rhs648]

"What''''s In The Stimulus For Workers?"

Higher taxes and no possibility of retirement. The rich get richer and the poor get poorer courtesy of the government, which is operated by the rich for the benefit of the rich. Poor people aren''''t lazy, they''''re stupid.


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Posted by random_radar

Don''t forget your $13 per week tax cut. With gas going up again, you may not see any of it. On the bright side, President Obama promised a middle income tax cut and $13 per week keeps his word.