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.
The Internal Revenue Service has concluded that Senator Barack Obama’s church, the United Church of Christ, did not violate nonprofit tax laws when Senator Obama addressed the denomination’s 50th anniversary General Synod in June 2007.
You may recall that the IRS was investigating the denomination claiming that it had “reasonable belief” that the circumstances surrounding the speech had political overtones. Nonprofit organizations, including churches, are prohibited from engaging in behavior that urges support for a political candidate.
The IRS determined that the UCC had made several attempts to stay in compliance noting that the invitation to Obama came “well before he announced his candidacy and that [he] was invited to speak … in a non-candidate capacity, on how his personal faith intersected with his public life.”
Additionally, the IRS found that the UCC had advised those in attendance that Senator Obama was there as a member of the church and not as a candidate for office, that the audience should not attempt to engage in any political activities, and that the church’s legal counsel had advised Senator Obama’s campaign on the ground rules for the speech.
The IRS also concluded that the UCC did not authorize campaign volunteers to set up tables near the entrance of the Hartford Civic Center and that the UCC website provided a link to the IRS fact sheet on prohibited campaign-related activities by non-profit groups. The church’s legal counsel was also found to have properly advised UCC leaders regarding their responsibilities.
The UCC was represented in the matter by the law firm of Wilmer Cutler Pickering Hale and Dorr on a pro bono basis.
You can read irsmayltr.pdfthe IRS letter in its entirety here.
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