Congressman Scott Shares the Details of the Economic Stimulus Plan
Last week the Senate joined the House in support of the bipartisan economic stimulus plan to help hardworking Americans struggling to afford the high costs of energy, health care, gas, mortgage payments and other necessities. The bipartisan stimulus plan will put hundreds of dollars back into the hands of more than 130 million American families to promote economic growth in our slowing economy and create jobs.
The measure signed by President Bush included:
-Tax cuts for More than 130 Million Families. The stimulus plan will provide tax relief of up to $600 for single individuals and $1,200 for married couples, plus an additional $300 for each child.
-Unprecedented Tax Relief for Low-Income Working Families. The measure provides tax relief for 35 million families who work but make too little to pay income taxes. Americans who earned at least $3,000 in 2007 will receive at least $300 for single individuals and $600 for married couples, plus a child tax credit of $300 per child.
-Rebates for 20 Million Additional Seniors and 250,000 Disabled Veterans. The measure provides rebates to anyone who received at least $3,000 in Social Security income, self-employment income or veterans' disability payments (including payments to survivors of disabled veterans). Residents of the U.S. territories will also receive the benefit.
-Tax Fairness and Targeted Rebates. Rebates will go to middle-income and low-income Americans. Tax relief will begin to phase out above incomes of $75,000 for a single individual and $150,000 for a married couple.
-Safeguards that ensure that Undocumented Workers Cannot Receive Rebates. The stimulus plan includes safeguards to ensure that undocumented workers cannot obtain rebates by requiring that all people must have valid Social Security numbers in order to receive the rebates.
In addition to rebates targeted for individuals and married couples, the economic stimulus plan will also expand financing opportunities for Americans in danger of losing their homes due to the mortgage crisis and promote small business investments.
-Helping Families Avoid Foreclosure. For 2008, the bill increases Federal Housing Authority loan limits to expand affordable mortgage loan opportunities. This will enhance credit availability in the mortgage market and increase the loan limits for single family homes from Fannie Mae and Freddie Mac from $417,000 up to $729,750 to cover loans made between July 31, 2007 and December 31, 2008.
-Encouraging Business Investment. The measure will double the amount small businesses can immediately write off their taxes for capital investments made in 2008 from $125,000 to $250, 000, for purchases of new equipment of up to $800,000. It will also provide immediate tax relief for all businesses to invest in new plants and equipment by speeding up depreciation provisions, allowing firms to write off an additional 50 percent for investments purchased in 2008.