USA Economic Stimulus
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About US economic stimulus
Economic Stimulus or Economic Stimulus Act is an act that has been certified by United States Congress. As per this Act, various economic incentives are provided to tax payers. Primary purpose of economic stimulus is to provide some fillip to US economy, which is in tatters at present. It also looks to offset any possibility of recession.
About US economic stimulus
Economic Stimulus or Economic Stimulus Act is an act that has been certified by United States Congress. As per this Act, various economic incentives are provided to tax payers. Primary purpose of economic stimulus is to provide some fillip to US economy, which is in tatters at present. It also looks to offset any possibility of recession.
US House of Representatives passed US economic stimulus package on January 29, 2008. US Senate passed a version of this package that was slightly different from its original one. This different version was passed on February 7, 2008. George W Bush, who was then president of US, signed it into a law on February 13, 2008. Projected total expense of this bill was about $152 billion for financial year 2008.
Recipients of US economic stimulus
Economic stimulus is a form of tax rebate that is provided primarily to US taxpayers that belong to a low or middle income group. These are tax incentives whose primary aim is to boost investment in business sector. This package also aims to increase limits that are imposed on mortgages that are considered fit to be bought by enterprises such as Freddie Mac and Fannie Mae, sponsored by US national government.
Tax rebates afforded by US economic stimulus
US economic stimulus package provides a minimum of $300 for every individual who falls under specified income limit. Taxpayers who are eligible under US tax paying rules, are provided with certain amounts of money and $300 for every dependent in case of tax payers, who have filed individually. In case of couples, this amount is $600. However, dependents need to be under 17 years of age in order to be eligible to receive this benefit. Payments made under US economic stimulus package are not more than $600 and are equal to net income tax liability of taxpayers.
Business tax incentives as per US economic stimulus
As per Economic Stimulus Act of 2008, business tax incentives are provided to commercial establishments. It is a one time payment and depreciation tax deduction. Rate is equivalent to 50 percent of specified type expenses for new investment done in 2008. .
Reason behind US economic surplus
As has been stated earlier, main purpose behind economic surplus package was to stave off economic crisis that has affected US in recent times. It was meant to stimulate recovery and subsequent growth of US economy by increasing expenditure of consumers and businesses.
