This was a MSN news item:

Democratic and Republican congressional leaders reached a tentative deal Thursday on tax rebates of $300 to $1,200 per household and business tax cuts to jolt the slumping economy.

The development came as the Bush administration, which also has been pushing for a deal, said agreement seemed imminent. “Our understanding is there is no final deal yet but they are making progress,” presidential spokeswoman Dana Perino said early Thursday.

Pelosi, D-Calif., agreed to drop increases in food stamp and unemployment benefits during a Wednesday meeting in exchange for gaining rebates of at least $300 for almost everyone earning a paycheck, including low-income earners who make too little to pay income taxes.

Under the tentative plan, families with children would receive an additional $300 per child, subject to an overall cap of perhaps $1,200, according to a senior House aide who outlined the deal on condition of anonymity in advance of formal adoption of the whole package. Rebates would go to people earning below a certain income cap, likely individuals earning $75,000 or less and couples with incomes of $150,000 or less.

Workers would have to have earned at least $3,000 in 2007 to receive the rebates, the officials said.

Another element of the plan is a package of tax breaks for businesses that could cost $70 billion, far more than had been expected, said a senior House aide and a Democratic lobbyist said.

Bush has supported larger rebates of $800-$1,600, but his plan would have left out 30 million working households who earn paychecks but don’t make enough to pay income tax, according to calculations by the Urban Institute-Brookings Institution Tax Policy Center. An additional 19 million households would receive only partial rebates under Bush’s initial proposal.

To address the mortgage crisis, the package also allows Fannie Mae and Freddie Mac — government-sponsored companies that are the two biggest U.S. financers and guarantors of home loans — to buy home mortgages much larger than the current $417,000 limit. Rep. Barney Frank, D-Mass., and chairman of the House Financial Services Committee, said that lending cap might reach as high as $700,000 in areas with the highest home prices.

The business tax portion would give businesses incentives to invest in plants and equipment, give small businesses more generous expensing rules and allow businesses suffering losses now to reclaim taxes previously



So, will this help or not? Thoughts, corrections, arguments?

Why would we rebate taxes to those who don't pay taxes? Give them 100% of what they paid back! I'm glad my tax dollars will further support degenerates who contribute nothing to society. Maybe we should include a rebate to illegals too?

I disgree with this part:



If they didn't pay in the first place, it isn't a rebate - it's a gift. I am decidedly anti-gift when the source is what I *did* pay in.

No it will not help in the long run, at least the rebate portion.

As much as I hate to admit it, Bush had the right idea on the rebates... a little peeved that the Dems lowered the amounts and spread them out to the non-tax paying. I will have more ability to stimulate the econony with a larger rebate of the taxes I paid, than will the non-tax payers.

Granted they could use it more than I can right now, but I think I could do more good with it.

I dont think it matters who gets it so much as whoever gets it, spends it. Its all about generating business and tax revenue..... I do feel like X and his welfare sucklings shouldnt benefit from your money or my money but as long as X goes and buys some organic (poop free) similac with his rebate.... we all benefit

Do you really think that people who didn't make enough to pay taxes are going to run out and spend their rebate check though? I think that they will save it or try and pay down some of their debt.

I am fully prepared to make the sacrifice and support our economy by purchasing a flat screen TV for my bedroom with my check.

Hubby and I were going to install a surround sound system in our living room with his next bonus. Letting a tax rebate absorb a piece of that wouldn't hurt my feelings any.

Thats just it... I think they may try to pay down debt, or buy food, which generally does not generate tax income.

Whereas I would either spend it most likely either on a vacation or towards a downpayment on a new car... both of which generate tax revenue and jobs.

While I don't agree with the gift portion of this deal, yahoo is reporting,

"Individuals who pay income taxes would get up to $600, working couples $1,200 and those couples with children an additional $300 per child under the agreement. Workers who make at least $3,000 but don't pay taxes would get $300 rebates."

So it looks like those who work will get something more than those who dont pay.

Here's the whole article:
Deal completed for tax rebates in June

I also heard this morning that this whole plan is not going to help the economy at all. Too little, too late.

Not that I have a problem with getting some of my tax $$...

They did an article about that in the local newspaper and most people said they were going to save the money if they got a rebate check back. They should have given out Wal-Mart gift cards...



However, I too am not complaining about getting some extra cash in my pocket.

I just wrote the check for the 47" 1080P HD LCD TV so this will either go for the surround sound or Blu-Ray Dvd, not sure which. I might not be able wait until June for the surround sound.

But they do pay taxes - payroll taxes. Income taxes are far from the only taxes we pay. People that pay no taxes at all will not get the rebate.

where's my muffler?

(recall when this was tried by primarily pubbies, the demos ridiculed the idea because it was only enough to buy a muffler)

When will the rebates be made availale?

I'm only asking because some Bob guy just created some sweet sounding meal and I need airfare to get there!

I think that I read June in the article.

I wonder if they is an age limit on children? What I mean is that I have a daughter at college who I still claim on my taxes, will I get an extra $300 for her. I could use it, college is expensive.

You know that is a really good question, because all articles I have read make the specific mention of 'child' and not 'dependent.'

Does anyone know how the child tax credit a few years ago worked? Was there an age limit on that?

Isn't 16?

yes, I have now lost the child tax credit for my kidos, this is most likely the same, 16 or 18

Child tax credit stops the year that your child turns 17. My daughter turned 17 during 2007 so I will not get the credit for her on my tax return for 2007. Darn it!

But the get the earned income tax credit, so they already get way more than they put in.

I don't get it. At 17, your daughter can't run off and join the military, and if she applies for student aid, she's considered your dependent. You aren't legally allowed to throw her out of the house and make her earn her own way until she turns 18 either, right? So why is she dependent on you but you can't claim her as one?

As for the tax rebate, mine will go towards paying down debt and/or into savings, so it won't hit the market as new purchases. Sorry, but just because the government is paying me back some of what I gave it to spend poorly over the past few decades doesn't mean I'm going to go out and blow it instead of being wise about my windfall.