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.
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