The House has finally passed a new Stimulus Package Designed to put the economy back on its feet. It now moves on to the Senate, where a vote is expected in the coming days.
It provides billions in tax cuts and new spending.
But one thing you won't find in the new $800 billion stimulus are Rebate Checks, as we received last year. Most economists say they were just a temporary "sugar rush," and did little to stave off the recession.
So here's what's in the latest version of the 2009 Stimulus for you:
- Tax cuts: $500 income tax cut for singles, $1,000 for couples...which comes to roughly $15 - $25 per pay check, depending on your income
- For the unemployed: another $25 a week, plus an additional 3 to 6 months in benefits
- For a Family on Food Stamps: roughly another $79 a month
- For First time home buyers: a $7,500 government grant...which Realtors say will be much better than last year's $7,500 loan, which had to be paid back, and had little effect
Republicans claim the House Stimulus plan is far too pork laden, and Senate Republicans may try to cut some of its controversial programs. However, the basics of the tax cuts and benefits for the unemployed are expected to remain in the final version.
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Thursday 1/22/09 UPDATE: New President, but where is new Stimulus?
It's going to happen....the only question is what consumers will get out of the next Stimulus this New Year...and when it will happen. And it now appears taxpayers will not receive another round of Rebate Checks.
It also appears we will not see a new Stimulus until February. President Obama wanted to sign a deal his first day in office, but he now has to battle both Democrats and Republicans in Congress over his plan.
President Obama wants a major stimulus to put the economy on its feet...but some in Congress worry another $800 Billion is just too much. Obama's plan would include money for new jobs, highway and bridge repairs, loans to homeowners, and tax cuts for consumers.
President Elect Obama is proposing the following for 2009:
- $500 Tax Cut for Singles
- $1,000 Tax Cut for Couples
Over the year, this translates to an addition $44 each month, per person, or about $22 in the average paycheck.
It now does not appear taxpayers will receive another round of checks in the mail, however. Critics say the first round of stimulus checks in 2008 did nothing to help the economy, simply giving consumers a quick "sugar rush." They say it helped China more than the US, as many shoppers spent the money on electronics made in China.
However, suppporters of a new round of checks say the only way to get consumers to open their wallets again in 2009 may be with cash in their pockes. Its hard to even notice a minor tax cut in your paycheck.
For questions about the 2008 Stimulus/Rebate program, such as why you never received a $600 Rebate Check, or why your check was smaller than it should have been, you need to contact the IRS.