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Rough rebate plan reached

January 24, 2008

The House leadership has worked out a basic tax rebate plan, according to the Wall Street Journal. It’s the first step in getting checks ranging from $300 to $1,200 in taxpayer mailboxes in a couple of months.

The newspaper says that House Speaker Nancy Pelosi and House Minority Leader John Boehner reached an "agreement in principle" in meetings last night on a bill to provide roughly $100 billion in tax rebates to individuals and about $40 billion in tax breaks for business.

The rebates would be at least $300 for anyone who earned at least $3,000 in 2007, with $300 bonuses for children. People who owe income taxes would receive more incrementally, up to $600 for individuals and $1,200 for couples.

The WSJ says rebates would be available to those below a certain income cap, likely $75,000 adjusted gross income for individuals and $150,000 for families.

But some folks already have a problem or two with the preliminary plan. Some lawmakers, says the paper, are concerned that the agreement does not
include added spending on unemployment benefits or food stamps.

The tricky, sticky issue of how to make such tax paybacks more effective, which I touched on in my earlier blog post on this topic, also is examined in this post by Howard Gleckman of TaxVox — Stimulus: Who Should Get a Rebate?

More news reports: Other news outlets reporting on this first cut at a rebate plan are the New York Times, Bloomberg, the Washington Post and the AP.

 

 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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