Leading Rich

The Senate has finally approved the 2008 Economic Stimulus Package that was initiated by Nancy Pelosi. This is probably the fastest bill that has gone through both the House of Representatives and the Senate. Up to 40 million taxpayers will be eligible with this legislation and will add around $168 Billion to the national deficit.

All there is left to do is have President George Bush to sign and pass the buck to the IRS to get the checks out. The cost will be nearly $152 Billion and this will come out from taxes in the future. The hope is that people will spend the money on goods and services thereby helping to stimulate the economy. Here are the details on what you can expect.

Individual Tax Payers

• Income less than $75,000 per year and pay income taxes would get $600
• Income up to $87,000 per year and pay income taxes would get partial rebates
• Income over $87,000 per year - No rebates

Married Couples

• Couples with income less than $150,000 per year and pay income taxes would get $1,200
• Income up to $174,000 per year and pay income taxes would get partial rebates

Children

• If you have children you will get an additional $300 per child

Low Wage Earners who don’t Pay Taxes, Disabled Veterans and Seniors

• Workers who make at least $3,000 but don’t pay taxes would get $300 rebates
• Couples who make at least $3,000 but don’t pay taxes would get $600 rebates

Business Tax Savings

• Businesses would be able to accelerate depreciation using Section 179 deduction up to $250,000 from the current $128,000
• Business will also be able to depreciate an additional 50% of the cost of an asset bought in 2008

FHA and FNMA Loan Limits

• Temporarily raises the limit on Federal Housing Administration loans and the cap on loans that Fannie Mae and Freddie Mac can buy to $729,750

How will you spend your rebate? Are you entitled to a rebate? We want to hear.

If you are shy send me an email and I will post the top 10 things readers are going to do with the money to info [at] leadingrich [dot] com.

P.S. 2008 Economic Stimulus Package 2 is now in the works. Stay tunes on what else Congress is working on.

Photo: AP News