Archive for the ‘tax breaks’ Category

Stimulus: Taxpayers Get Billions; What Do You Get?

February 5, 2009

Sending a kid to college, purchasing a new car, buying a first home or making the one you own more energy efficient. Those are a few of the ways Americans might cut their tax bills under the economic stimulus package Congress is crafting.

By STEPHEN OHLEMACHER, Associated Press

The biggest tax breaks target the working poor, especially those with children, but many apply to middle-income and even wealthy taxpayers.

Most workers would see about a $20 a week increase in their take-home pay, starting around June, from a new tax credit. Millions of additional low-income workers who don’t make enough money to pay income taxes would get checks from the government when they file their 2009 tax returns.

The $819 billion economic recovery package approved by the House last week includes about $188 billion in tax breaks for families and individuals over the next two years. The Senate package, which has topped $900 billion, has about $263 billion in tax breaks for families and individuals.

The goal is to get people to spend money at a time when most are cutting back and saving more. It makes sense to be frugal when the economy is in such bad shape, but it hurts the economy when everyone does it.

Here are some ways taxpayers could save money:

Read the rest:
http://news.yahoo.com/s/ap/2009020
4/ap_on_go_co/stimulus_taxes

Stimulus plan repeals big tax break for banks

January 17, 2009

House Democrats’ version of the $825 billion recession rescue package would end billions of dollars in tax breaks the Bush administration quietly gave to banks last fall.

Already almost exclusive beneficiaries of a $700 billion Wall Street bailout, banks are largely left out of the House stimulus package that President-elect Barack Obama wants passed quickly through Congress. Those getting financial bailout money wouldn’t even be eligible for one of the main business tax breaks aimed at priming the economic pump.

By STEPHEN OHLEMACHER, Associated Press Writer

Homebuilders, manufacturers, retailers and low-income families share the bulk of the $275 billion in proposed new tax cuts.

House leaders moved this week to repeal the tax break for banks even as the Senate voted to help many of those same institutions by releasing the second $350 billion of the widely unpopular Wall Street bailout. Many lawmakers are unhappy with the results after the Bush administration spent the first $350 billion, making them wary of helping banks in the stimulus package.

To address the financial industry meltdown, the Treasury Department last fall issued a new tax rule to make it more attractive for healthy banks to buy troubled ones hit hard by the mortgage crisis. It allowed healthy banks to avoid billions of dollars in taxes by offsetting their profits with the losses of the banks they acquire.

Read the rest:
http://news.yahoo.com/s/ap/20090117/ap_on_go_co/stimulus_taxes