So apparently there is talk amongst Congress and the White House regarding President Bush’s economic stimulus plan on how to provide immediate relief to the country which could already be in a recession. The current proposed plan will provide a $600 check to any individual who paid tax last year, or a $1,200 check for couples. Those who who did not pay federal income taxes but did earn an income greater than $3,000 will get a $300 rebate per individual or $600 for a couple. It is reported that only those who earn up to $75,000 individually or $150,000 as a couple will be eligible for the rebate. If the plan does not face a lot of hurdles in the House or in the Senate, people could start receiving their check as early as June, which for “immediate relief” is still half a year away.
It is too early to say whether a flat rebate like this will work but certainly if people go out and buy things it will be a great quick fix. However, if people just use the money to pay down their debts on their credit cards, it will fail because all this money will be used towards something they had already spent and it will not be the shot in the arm that the government is looking for. So we will see how this works out, but still plenty of time to go before anything is decided on who gets what and when.
Happy spending those who get a check!