Democratic Underground - Too poor? No tax rebate for you!

Lines drawn on stimulus
By Mike Soraghan and Jessica Holzer
Posted: 01/23/08 12:01 AM
http://thehill.com/leading-the-news/lines-drawn-on-stimulus-2008-01-23.html

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It remains unclear whether the $800 tax rebates that have been floated by leaders would include workers who are too poor to pay income tax. At the White House, however, Reid indicated he would push for something aiding lower-income Americans. “We clearly want the American people to benefit, not just one segment of the American people,” he said.

But House Minority Leader John Boehner (R-Ohio) said the prospect of sending rebates to people who do not pay income taxes would spark a “vigorous argument.” He stopped short, however, of calling it a deal-breaker.

<<snip>>

Gregg said he has aired his concerns about the size of the package with Minority Leader Mitch McConnell (R-Ky.). He also said that giving rebates to workers who pay only Social Security taxes, but not income taxes, is “mind-boggling.”

But the idea got a boost from the director of the Congressional Budget Office (CBO), Peter Orszag, who told the Senate Finance Committee Tuesday that weighting tax relief to poorer families would increase the strength of the stimulus.

Chairman Max Baucus (D-Mont.) also asked Orszag about the merits of issuing rebates of $400 to individuals and $800 to families, and bonuses to families of $400 per child. Orszag replied that the approach might have a greater impact as long as the bonuses are also available to families who do not pay income taxes.

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