Remember when I said that it was going to be a long January? I wasn’t kidding. Just before the long break, Democrats in the House revealed their tax plans as part of a new stimulus package. And if you’re expecting a quick “yes” vote, don’t hold your breath.
The plan includes a whopping $275 billion in tax breaks. Half of the breaks will go to a new tax credit for working families. The credit, as previously blogged, would be taken out of payroll taxes and would not be a separate rebate check. The credit would be likely be subject to phase outs with the final cut off being $75,000 for individuals or $150,000 for married persons (and not $200,000, as previously tossed about).
The Earned Income Tax Credit (EITC) would also be increased. Also on tap is a withdrawal of the repayment requirement for the first-time home buyers credit.
Businesses haven’t been left out with the NOL carryback expansion still in play. The provision would allow companies posting losses to credit those losses against taxable income in other years. Left out of the NOL expansion, however, are those companies already being helped under the give our money to Paulson Troubled Asset Relief Program.
As expected, small businesses will be allowed to deduct up to $250,000 in capital expenses, renewing efforts already in place for tax relief.
But is it enough? House Republicans don’t believe that the stimulus package has sufficient tax breaks to help businesses. Expect that to be a major feature of discussions when Congress returns for session after the Inauguration.
As stimulus packages go, it’s pretty steep. The price tag will no doubt play a big part of the discussions… With more bad economic news pouring in every day, everyone agrees that something has to give. The real question is what that something will be.
where is the effort to create jobs in competitive global economy?
where is the effort to create jobs in competitive global economy?
where is the effort to create jobs in competitive global economy?
where is the effort to create jobs in competitive global economy?
where is the effort to create jobs in competitive global economy?
where is the effort to create jobs in competitive global economy?
where is the effort to create jobs in competitive global economy?
where is the effort to create jobs in competitive global economy?
where is the effort to create jobs in competitive global economy?
where is the effort to create jobs in competitive global economy?
where is the effort to create jobs in competitive global economy?
where is the effort to create jobs in competitive global economy?
where is the effort to create jobs in competitive global economy?