You’ve probably already heard this, but in case you haven’t (from the Courant):
With unprecedented speed and cooperation, Congress and the White House forged a deal Thursday to begin rushing tax rebates of $600 to $1,200 to most tax filers by spring, hoping they will spend the money just as quickly and jolt the ailing economy to life.[...]
Individual taxpayers would get up to $600 in rebates, working couples $1,200 and those with children an additional $300 per child under the agreement. In a key concession to Democrats, 35 million families who make at least $3,000 but don’t pay taxes would get $300 rebates.
The rebates would phase out gradually for individuals whose adjusted gross income exceeds $75,000 and for couples with incomes above $150,000. Contributions to IRA and 401(k) retirement accounts and health savings accounts would not count toward the income limit.[...]
If the Senate gives quick approval, the first rebate payments could begin going out in May and most people could have them by July, [Paulson] said.
I still say that you’ll see some combination of pay-down on debt and wasteful frittering away of the windfall, netting out to minimal impact to the economy, and that much of a higher hurdle for us to overcome on the budget deficit.
Meanwhile, I’m kind of curious about how income will be measured. For example, what about households that saw large catch-up payments arising from delayed Social Security disability awards?
![[Photo by Mojo Denbow's Photo Studio]](http://www.triskele.com/wp-content/uploads/2008/01/hdtv-amazoncom-1536002-o.jpg)
With all the talk in political/economic circles about Bush’s proposal to use (among other things) tax rebates to jump start the economy, I’ve been wondering –
