Barack Obama may not yet be in office but his economic team is already plugging away at an economic stimulus package. According to Vice President Elect Joe Biden, the package will include investments in health care, energy, education and infrastructure.
The stimulus package has been touted as providing relief for the jobless and the middle class, though details have been vague so far. Part of that relief may include a tax credit. Obama had suggested during his campaign that he would be in favor of a tax credit for the employed of $1,000 for working married couples or $500 for working singles. There is no indication that those numbers are still in play – or even that the credit will be part of the final stimulus package.
What will likely be in included in the package (as previously noted on the blog) are increased unemployment benefits, higher food-stamp payments and aid to states to subsidize Medicaid costs, a growing concern as more people lose their health insurance due to layoffs or increased costs.
What is missing from the continued talks about the stimulus package is any mention of an additional rebate check, something that many taxpayers were hopeful would be included. A version of the proposed tax credit might offer a higher refund or decreased tax bill for some taxpayers if implemented in early 2009. But the implementation is a big “if” so far. As the cost of the stimulus package grows (it’s estimated to be at least $800 billion so far), lawmakers are likely to pull back rather than add on to the plan.
Bottom line: Don’t count on receiving an additional check. There’s still no plan for a second stimulus check at this time. I’ll keep you posted as talks on the plan progress.
And we should go the rebate check scene again because it worked so well each time? NOT!
Oh, I’m in agreement with you… But there is a significant percentage of taxpayers that want another check.
Is this one going to be a real check, or just an “advance on next year’s refund” scam like this one? As I embark on my first season as an entry-level tax preparer, I am NOT looking forward to having to tell numerous low-income clients that the $600 or $1200 George W. Bush sent them last spring is going to mean they have a balance due. Some of them will walk out of the office and not file a return when they hear that. (I gather people do that, thinking that if they don’t file, they don’t have to worry about it — which they don’t, for the time being!) Others will yell and scream and say it’s my fault. What do I tell them — “Don’t blame me, I voted for Badnarik?” >8[
No, the 2008 check is NOT an advance. It’s just cash in your pocket. You will have to report it on your 2008 return but it will not affect your tax or refund due unless you didn’t file in 2008 (in which case rumor has it that you can apply for your 2008 rebate in 2009).
Ooh, great — that’ll save me some major client headaches (as well as some pain when my wife and I file our own return). Merry Christmas to you, too! 😀
Urb
Wow Urb-you sure changed your tune in a hurry. Anything else you want to criticize Bush for?? I bet you’ve got some great ideas on how to stimulate the economy!
Great! Was expecting another check and the tax on unemployment taken off – Obama promised both of these – now appears “not going to happen.” Sick of this!
HAHA all you Obama welfare supporters expecting the savior Obama to bring you the world. At least John McCain had a realistic idea. NO Check for you HAHAHAHAHAHAHAHAHAHAHAHAHAHA
Obama is pushing for the $1,000 (or $500) to be mailed in a check (if you filed a 2007 return). Then, from what I understand, there will be a permanent tax cut of either $500 for singles or $1,000 for married couples.
He is also still working toward removing the taxes on unemployment benefits temporarily.
None of these offers have been removed from the table. Have at least a little bit of faith, you guys. Sure, I don’t expect him to “bring you the world”. However, I do think that if Bush, who cared nothing about the working class, can enact a decent stimulus plan and try to make some positive strides for the economy; Obama can definitely make it happen.
the real problem is not the we need tax cuts or anything but what we need is more money in the middle class cause with tthe inflation of the market and people making 6.50 min. wage and expect people to spend there hard earned money on expensive nothings.
It is not stimulus checks that will save this economy. Nor is it the free market system. The answer in times of trouble is governmental intervention. It wasn’t stimulus checks that created the interstate system. Stimulus checks did not put men on the moon. And stimulus checks will not put an end to a global financial crises.
He did promise the people a rebate check. His health reform protects every one but the working class. Why not put a freeze on the doctors, hospital, health premiums, and the drug company. This is the biggest cause of our problems. He is helping everyone but the working class, h0w is going to help the problem?
I voted for this man and I know it still early, but I hope he does not let us (working middle class) down.
Please let us pray for him and stand by him.