Bush Signs Tax Rebate Legislation
WASHINGTON, DC -- President Bush signed tax relief
legislation this week that could give Americans up to $1,800
for couples with children by May.
The bill the President signed -- H.R. 5140, the Economic
Stimulus Act of 2008 -- amounts to more than $152 billion
this year, or about one percent of GDP. It provides tax rebates
to 128 million American households.
Payments will go out through late spring and summer. Under
the legislation:
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- Individuals and families are eligible to receive up to $600
for individuals and $1,200 for couples. A minimum of $300
per person and $600 per couple would be available to those with
at least $3,000 of earned income. This relief would be available
to everyone with adjusted gross income less than $75,000 for
singles and $150,000 for married couples filing jointly. It will
be phased out for taxpayers above those income thresholds. Taxpayers
may qualify by filing a tax return for 2007 and including a valid
Social Security number on their tax return.
- Everyone eligible for this relief would also receive an
additional $300 per child. For example, this would mean up
to $1,800 of tax relief for an eligible couple with two children.
- Recipients of Social Security and certain veterans' benefits
are also eligible for rebates. Those who receive at least
$3,000 from any combination of benefits from these programs will
receive rebates. The IRS and Treasury Department will be working
closely with the Department of Veterans Affairs and the Social
Security Administration, along with beneficiary organizations,
to ensure that all eligible individuals are able to receive their
payments.
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This legislation also offers incentives to spur business investment.
The legislation would save businesses approximately $50 billion
in near-term taxes through a temporary change to the tax code
that will allow American businesses that buy new equipment this
year to deduct an additional 50 percent of the cost of their
investment in 2008. This will encourage businesses to expand
and create new jobs now because buying equipment, software, and
tangible property this year will dramatically lower their taxes.
The legislation also increases expensing for small businesses.
This means that a business placing less than $800,000 of
equipment into service this year would be able to immediately
deduct up to $250,000 up from $128,000 of its investment
in 2008.
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