U.S. families to get boost

Congress and the White House deliver an economic stimulus package.
By AP

WASHINGTON -- U.S. Congressional leaders announced a deal with the White House yesterday on an economic stimulus package that would give most American tax filers refunds of $600 to $1,200, and more if they have children.

House Speaker Nancy Pelosi said Congress would act on the agreement -- hammered out in a week of intense negotiations and uncustomary bipartisanship -- "at the earliest date, so that those rebate checks can be in the mail."

U.S. President George W. Bush praised the agreement at the White House, saying it "has the right set of policies and is the right size."

Treasury Secretary Henry Paulson said he would work with the House and Senate to enact the package as soon as possible, because "speed is of the essence."

Majority Leader Harry Reid said the goal is to send the package to the White House by Feb. 15 for Bush's signature, but he noted the Senate would likely try to add more spending to the package.

The Treasury Department has already been talking to the IRS about getting the checks out "as quickly as possible, recognizing that the tax filing season is ongoing," said Treasury spokesperson Andrew DeSouza.

ECONOMIC STIMULUS DETAILS

- The rebates would go to about 116 million families. - They would include $28 billion in cheques to 35 million working families not addressed by U.S. President George W. Bush's original proposal. - The bulk of the rebates -- more than 70 per cent -- would go to individuals who pay taxes. - Individuals who pay income taxes would get up to $600, working couples $1,200 and those 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. - The rebates would phase out gradually for individuals whose income exceeds $75,000 and couples with incomes above $150,000, aides said. - Individuals with incomes up to $87,000 and couples up to $174,000 would get partial rebates. The caps are higher for those with children. - The first rebate payments could begin going out in May, and most people could have them by July. - The rebates were expected to cost about $100 billion, and the package also includes close to $50 billion in business tax cuts. - The package would allow businesses to immediately write off 50 per cent of purchases of plants and other capital equipment and permit small businesses to write off additional purchases of equipment. - To address the mortgage crisis, the package raises the limit on Federal Housing Administration loans from $362,000 to as high as $729,750 in expensive areas, allowing more subprime mortgage holders to refinance into federally insured loans. - To widen the availability of mortgages across the country, it also provides a one-year boost to the cap on loans that Fannie Mae and Freddie Mac can buy, from $417,000 up to $729,750 in high-cost markets.

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http://lfpress.ca/newsstand/News/International/2008/01/25/pf-4792968.html