CBPP statement on Bush's economic stimulus plan

http://www.cbpp.org/1-18-08tax-stmt.htm

"First, the Administration would apparently provide either no tax rebate or only a partial one to more than 65 million low- and moderate-income households, including about 22 million households which do not file income tax returns, such as many seniors on fixed incomes. Second, the President disparaged the idea of including spending measures in a stimulus package even though they can be among the most effective stimulus options available.
Treasury Secretary Paulson said today the tax rebate should go only to people who pay taxes, which could mean the Administration would limit it to those who pay income taxes and exclude those who don’t earn enough to owe income tax but pay payroll taxes. The Administration’s plan that was disclosed yesterday would do just that. It also would give only a partial rebate to millions of taxpayers who are in the 10 percent tax bracket because their incomes are modest. Families of four with incomes below $41,000 would get nothing or only a partial rebate. These are, however, the very consumers who would spend most of the rebate rather than save it. Federal Reserve Chair Ben Bernanke yesterday noted the importance of covering low- and moderate-income households for this reason.

The President today spoke of using the tax rebate to enable Americans “to help meet their monthly utility bills, cover higher costs at the gas pump, or pay for other basic necessities.” Yet the Americans who most need help meeting those expenses, and would quickly spend all or most of the rebate, would be fully or partially left out of the Administration’s plan."

snip

"Late Thursday evening, the Center issued a statement based on details of the President's stimulus plan that had been disclosed in the media. That statement, which has been updated to reflect estimates from the Urban-Brookings Tax Policy Center on how many people would receive no tax rebate or only a partial one, can be viewed at http://www.cbpp.org/1-17-08tax-stmt.htm."


Vanity side note - pretty much as I called it

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=2710982#2711828

"That's 54% of households making less than $50,000 a year. Those people will get less than $1600 and often less than $800.

However, the 6% of households who make more than $150,000? They will get the full $1600. It's a bullsh*t plan, and I expect CBPP and CTJ to verify that."

Except apparently the plan does involve a cap whereby people making over $110,000 would not get the rebate.

I shudder to think of where we will be a year from now when bush goes back to crawford

the media is talking like it is a done deal except for the amount.