Tax Break In The Works

18 01 2008

According to Andrew Taylor of the AP– which I trust about 75% of the time, CNN which I trust about 33% of the time and MSNBC which I trust about 50% of the time; there appears to be a tax cut coming today to get the economy going again.

From AP: Aides to lawmakers involved in the talks said the White House also wants to eliminate the 10 percent income tax bracket for one year and issue a rebate within months. Advocates for the poor said that tens of millions of people in lower income ranges would be left out or not fully feel the benefit of the White House plan.

Lawmakers were instead discussing a $500 rebate for individuals, the aides said, with details for couples and people with children still being negotiated.

The rebates would likely be limited to individuals with incomes of $85,000 or less and couples with incomes of $110,000 or less, the aides said, speaking on condition of anonymity because no final decisions had been made.

The president did not push for a permanent extension of his 2001 and 2003 tax cuts, many of which are due to expire in 2010, officials said. That would eliminate a potential stumbling block to swift action by Congress, since most Democrats oppose making the tax cuts permanent.

Paulson said the business section of Bush’s plan would be focused on “giving businesses the incentive to hire people, to create jobs.”

White House counselor Ed Gillespie said Friday on CNN the White House would still like to see the tax cuts made permanent, but the president believes a stimulus plan needs to be put into place within the next few weeks.

Bernanke voiced his support for a stimulus package in an appearance before the House Budget Committee. He stressed that it must be temporary and must be implemented quickly – so that its economic effects could be felt as much as possible within the next 12 months.

Back to my thoughts: I’m certainly not opposed to paying taxes as a general rule so long as it’s actually being used for the improvement of this country and not for padding the pockets of the already rich.  I am opposed to continuing to waste tax dollars while the people who pay for them are struggling. Further, I have real issues with borrowing money from China, paying more than a couple hundred for a toilet in the pentagon or wasting millions on Yucca mountain– which appears to finally be dead in the water.

So, we’ll see what happens with this proposed tax break… CNN was doing a survey asking what people would do with their $800. More than one email they read said it would go towards heating bills and gas for vehicles. This isn’t going to stimulate the economy but, it will help the individuals who need it for their bills. 

I’m not opposed to getting a check from Uncle Sam– the way the Bush Administration spends it I’d just as soon get the money– however, wouldn’t– in the long term– that money be better used buying solar panels or new windows?  Maybe that’s what we’ll do with ours… over the long term it would be a much bigger savings.  Think they’ll extend the engergy tax credits too?

To learn more about energy tax credits visit:




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