Q: What is the Economic Stimulus Package all about?
A: Over the course of the past several months, a slump in the housing market and slowed economic growth have caused concern in the homes of millions of Americans. Leaders of both parties in the House of Representatives heeded the advice of the nation’s top economic advisers and worked with the White House to create an economic stimulus plan intended to give a much needed boost to the economy. The bill was aimed at infusing money into the economy by providing rebate checks to millions of Americans and offering incentives for business investment. The legislation quickly passed the House and was sent to the Senate where I used my position as ranking member on the Senate Finance Committee to make significant improvements to the House-passed bill. My biggest priorities were getting rebate checks to more than 20 million low-income seniors as well as veterans who receive a disability pension. I also worked to close a major loophole in the House version of the legislation by requiring a valid Social Security number in order to receive a rebate check so that rebate checks didn’t get sent to illegal immigrants. All three of these provisions were included in the Finance Committee bill, and the Senate ultimately passed legislation that included these important changes. The House followed suit and the President signed the provisions into law. Overall, if these rebates and business incentives deliver their anticipated impact, they will help to get the gears moving quickly again in the world’s largest economy.
Q: Who will be receiving checks and when will they receive them?
A: More than 130 million taxpayers will receive rebate checks beginning in early May, following the conclusion of the current tax season. The amount of the rebate check is based on each recipient’s 2007 tax return. For most recipients, the payments are equal to the amount of tax liability on their 2007 returns, with a maximum of $600 for individuals making $75,000 a year or less and $1,200 for those who file jointly making $150,000 a year or less. The legislation also provides a minimum $300 rebate for those who have no tax liability but have $3,000 a year or more in income. This group includes veteran’s receiving disability payments, low-income seniors on Social Security, and low-income workers. It’s important for those who have no tax liability but are eligible for a rebate to file a 2007 return in order to notify the Internal Revenue Service of their qualifying income. Parents can also look forward to a $300 rebate for each child. The child must be eligible under the Child Tax Credit and have a valid Social Security number. To view a payment schedule or for updates and questions, please visit www.irs.gov.