What is there for me in Stimulus Bill?
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As we all know, today President Obama signed $787 billion stimulus package and converted in law. How to explain in simple words? If you ask Obama, he will say Jobs, Jobs and Jobs! If you ask economist, he will explain in simple word to his son/daughter, government stole his/her kids’ savings from piggy bank. It increases level of country’s debt at unprecedented level. The national debt - the sum of all annual budget deficits - stands at $10.7 trillion. Or about $36,000 for every man, woman and child in the U.S. (1) Do you see this- stimulus package already snatched $36,000 from your child too!
Taxes:
- Most people will receive a tax credit of $400 (or $800 for married couples) However, this tax credit will be phase out if your income is more that $75,000 ($150,000 for couples )
- The $1,000 child tax credit would be extended to more low-income families that don’t make enough money to pay income taxes, and poor families with three or more children will get an expanded Earned Income Tax Credit
- First-time home buyers who purchase their homes before Dec. 1 would be eligible for an $8,000 tax credit.
- Add energy-efficient windows, furnaces and air conditioners can get a tax credit to cover 30 percent of the costs, up to a total of $1,500
- Those who are already receiving unemployment benefits wouldn’t pay any federal income taxes on the first $2,400
- Auto Sale Tax as a deduction: If you’ve an eye on new car, now might be the time to pull the trigger. The stimulus bill lets you count the sales tax as a tax deduction on auto purchases up to $49,500. Again, high income earner would not be able to take full advantage. It phases out for anyone earning more than $125,000 or couples earning over $250,000.)
Health Insurance:
- Most people who lost the job is able to keep their coverage for 18 months under the COBRA program when they lose their job. However, premium will shoot up high, sometime over $1000 per month. Under Stimulus bill, the government will pick up 65 percent of the total cost of that premium for the first nine months.
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