Congress passes tax rebate bill!

Congress passed the President's tax rebate plan yesterday. It's on it's way to W who is expected to sign the bill next week. Married couples making up to $150,000 will get a rebate check of $1,200. Individuals making up to $75,000 will get a $600.00 rebate. There is also an additional per child rebate of $300.00 each. People with incomes slightly higher than those amounts will get a partial rebate. Seniors and the disabled have been included to some extent.

We have been advised that rebate checks are expected to go out some time in May. I'm told that if you do not file your tax return by April 15, 2008, your rebate could be delayed until December. Hint: call Fred today and schedule your tax return appointment or mail in your information.

There are no revenue enhancements as part of this tax bill. Translation: charge that to the Big Red, White, and Blue Master-Deficit card! The incentives are being funded with a $150-$200 billion increase in the federal deficit. The estimate of the amount of the deficit increase seems to vary depending on the source of the information.

Businesses are also included in this tax bill. According to currently release information on the bill. They get a $250,000 1st year #179 write off for new equipment in addition to a 50% 1st year bonus depreciation write off. This is designed to stimulate the commercial side of the economy and encourage capital item purchases of big ticket items.