Congress Announces a Revised Tax Rebate

A deal between Congressional leaders and the White House on a tax rebate package was announced early Thursday afternoon. It's been called an "economic stimulus program" and designed to give more than 115 million families between $600 - $1,200 tax rebates, and more if they have children.

Individuals that pay income taxes would receive up to $600 and working couples earning enough to pay income taxes would be eligible for $1,200 in rebates. Those with children would receive an additional $300 per child. Workers who earn less $3,000 per year and not paying income tax , are eligible to receive a $300 rebate.

The rebates will benefit individuals earning up to $75,000 a year and working couples earning up to $150,000 per year. The rebates would be lower for those exceeding these amounts, up to $87,000 for individuals and $174,000 for couple. For those with children, the caps would be a bit higher.

The stimulus package failed to include an expected extension for unemployment benefits. Also left out of Thursday's deal was the expected increase for those needing food-stamp assistance. Many news sources are stating the Democrats are disappointed with the loss of funds going to both programs, especially the unemployment extension.

The Associated Press quoted House Speaker Nancy Pelosi saying "I can't say I'm totally pleased with the package, but I do know that it will help stimulate the economy. But if it does not, then there will be more to come."

Pelosi also added that Congress would act on the deal immediately, so the rebate checks would get into the mail at the earliest date.

It is unclear how much this economic stimulus package will actually stimulate the economy. With 33% of the 150 billion dollar package going to the business sector, it appears this package is much too little and far too late. Lower class and lower-middle class families will certainly welcome the rebates. It will give these families a little bit of a cushion when it comes to buying the basic necessities that continue to go up in price. It will help these families pay for their heating bill over the next couple of months and maybe there will be enough left over to pay down some of their credit cards or other over-due bills. It remains to be seen how many families will be running out the door to book a cruise or purchase the HDTV they've been wishing for.

Perhaps the next time Congress and the White House sit down with plans to boost the economy, they can come up with a plan that helps out everyone, especially those who are in dire need of help.