The 2008 Economic Stimulus Package

As the economy slides rapidly into what could be the second recession during the presidency of George W. Bush, he and lawmakers in Congress have made a bipartisan effort to pour new life into the sagging economy. Working with Speaker of the House Nancy Pelosi and other leaders, the President created a stimulus package that will provide economic incentives in the form of tax rebates to approximately 117 million families. According to news reported on Excite.com (http://apnews.excite.com/article/20080125/D8UCJ2C00.html), the rebates would amount to checks up to $600 for individuals and $1200 for couples. Families with children could receive up to $300 additional on their checks. For those who earn too little to pay income taxes, a provision was agreed to that would give them a check for $300.

Tax incentives for businesses were also included in the deal. Up to $50 billion is being allocated to cover help for businesses that invest in new plants and equipment. It is hoped this additional investment will create more jobs and preserve others. The total tax rebate and incentive package will cost $150 billion dollars.

High hopes are hanging from this package in an election year. Democrats relented on their push for additional unemployment and food stamp benefits to be a part of the deal. It is expected that an attempt to add this back into the package as the bill passes through the Senate. Help is also being offered to institutions being hammered by the subprime mortgage massacre. The size of the loans to be accepted by federally back dollars is increasing from approximated $400,000 to over $700,000 depending on the loan program and geographic area being served. The purpose of this increase is to allow subprime lenders to offer borrowers who are in trouble with their mortgages an opportunity for refinancing their home and possibly high interest credit card debt. This will avert a glut of repossessed houses sinking a weak housing market, and the possibility of hosts of bank failures across the nation.

As a homeowner looking for an opportunity to refinance for a better rate and options, this stimulus package could be a huge blessing. While not in trouble with an adjustable rate mortgage, this chance to get a favorable look by financial institutions has make those with bruised credit happy. Being in possession of a mediocre but not terrible credit score, a package that encourages lenders to be nice to borrowers by offering incentives may be just what I have been waiting to happen. My current rate is a little over 7%. This package when passed and in full swing may prove to be my pass to lower my rate by a point or so with additional government money on the table.

The rebate is flying through the mail at a time when my wife and I are considering what to do about our aging automobiles. The miles on both vehicles are creeping up to the 200,000 mile mark. It is time for a change. While it is unclear exactly how much of a rebate we will receive, if it is in that $1,000 range, this will be just the boost we need to move at least one car to a new home. A fresh set of wheels in the driveway will be a major blessing to us. My wife has a 20 mile commute each way to work and a reliable car will guarantee that half of our income will still be able to be earned. Although I am sure the President and Congress want me to buy a new car, I will just take a good used one off of the market so someone more financially fixed than myself will be forced to shop the new car market.