Congress has passed and President Bush has signed into law the much discussed $168 billion economic stimulus package designed to prevent the nation from falling into a job-destroying recession.
Here is what that package will most likely mean for the average citizen.
First, you will need to have filed your 2007 income tax return. If you file by April, you will be looking at a tax rebate check from the government ranging between $300 and $1,200.
However, if you earned more than $75,000 last year as an individual or $150,000 as a couple, your tax rebate will be smaller - roughly $50 smaller for every $1,000 you earned above the $75,000 and $150,000 thresholds.
Meanwhile, the government will probably start distributing those rebate checks to the public around July. However, if you are low-income or a senior citizen, you could receive your rebate check as soon as May.
More specifically, most taxpayers can expect to receive a rebate check of close to $600 for individuals and $1,200 for couples. In addition, you can also expect an additional $300 for each child. The stimulus package is designed to stimulate spending and thus keep businesses humming and people employed. Will it work? Some economists doubt it. Several polls show a majority of taxpayers intending to save (not spend) the rebates. Others have indicated they plan to pay down debts and not undertake new spending.
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