Bush Signs Economic Stimulus Package

by Mike Godfrey, Tax-News.com, Washington

14 February 2008

US President George W. Bush has put his signature to economic stimulus legislation that will inject about USD150 million into the US economy via tax rebates for mainly low-income taxpayers, and enhanced investment incentives for businesses.

"The bill I'm signing today is large enough to have an impact - amounting to more than USD152 billion this year, or about 1% of GDP," Bush announced during a signing ceremony at the White House on Wednesday.

"The bill provides temporary tax incentives for businesses to make investments in their companies so that we create new jobs this year. The bill provides individual tax relief in the form of tax rebates," Bush explained.

The legislation, approved by Congress on February 10th, provides rebates of $600 for individuals and $1,200 for married couples, with additional rebates for families with children. Thanks to an amendment by the Senate, about 20 million seniors and a quarter-of-a-million disabled veterans will also receive rebates, amounting to USD300 each. These rebates will be subject to a phase-out for taxpayers with adjusted gross income in excess of USD75,000 (USD150,000 for married couples filing jointly).

Provisions aimed at small businesses include temporary enhanced small business expensing, and a temporary bonus depreciation.

According to Treasury Secretary Henry Paulson, the Internal Revenue Service will manage the current tax filing season and simultaneously prepare to issue these additional payments starting in early May.

"Payments will be largely completed this summer, putting cash in the hands of millions of Americans at a time when our economy is experiencing slower growth," he announced last week.

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