Today, Nancy Pelosi announced the terms of the economic stimulus package designed to pull us out of the recession. The package is a bag of compromises the benefits of which will not be available to individuals and businesses will not likely reap until this summer.
Here are the terms of the package:
- Total package cost: $150 billion
- Stipends of $300 to $1,200 per family:
- At least $300 to all workers who earned at least $3,000 last year (even those who did not earn enough to pay taxes last year)
- Workers who paid income taxes could receive more than $300
- Families with children would receive an additional $300 per child, up to a cap of $1,200
- The wealthiest taxpayers (individuals earning more than $75,000 and couple earning more than $150,000) would not receive a stipend
- $50 billion of the package will be devoted to tax incentives for businesses:
- Businesses can deduct 50 percent of the price of new equipment they purchase this year
- Small businesses can deduct about $200,000 in new equipment purchases (the current limit is $112,000)
- No extension of unemployment benefits
- No temporary increase in food stamps
- Raises the loan cap on government-backed mortgage loans to $720,000
- Allows Fannie Mae and Freddie Mac, the largest U.S. mortgage finance companies, to temporarily buy mortgages exceeding a $417,000 federal limit
What will you do with your mini windfall? The hope is that you will spend it to jumpstart our economy. Do we dare to have the audacity of hope?
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