The Economic Stimulus Act of 2008
The government is giving away free money! The IRS will give you up to $600 if you file your 2007 taxes this year. Here is the letter I just received from the IRS:
“Dear Taxpayer:
We are pleased to inform you that the United States Congress passed and President George W. Bush signed into law the Economic Stimulus Act of 2008, which provides for economic stimulus payments to be made to over 130 million American households. Under this new law, you may be entitled to a payment of up to $600 ($1,200 if filing a joint return), plus additional amounts for each qualifying child.
We are sending you this notice to let you know that based on this new law the IRS will begin sending one-time payments starting in May. To receive a payment in 2008, individuals who qualify will not have to do anything more then file a 2007 tax return. The IRS will determine eligibility, figure the amount, and send the payment. This payment should not be confused with any 2007 income tax refund that is owed to you by the federal government. Income tax refunds for 2007 will be made separately from this one-time payment.
For individuals who normally do not have to file a tax return, the new law provides for payments to individuals who have a total of $3000 or more in earned income, social security benefits and/or certain veterans’ payments. Those individuals should file a tax return for 2007 to receive a payment in 2008.
Individuals who qualify may receive as much as $600 ($1,200 if married filing jointly). Even if you pay no income tax but have a total of $3000 or more in earned income, Social Security benefits, and or certain veterans’ payments, you may receive a payment of $300 ($600 if married filing jointly).
In addition, individuals eligible for payments may also receive an additional amount of $300 for each child qualifying for the child tax credit.
For taxpayers with adjusted gross income (AGI) of more than $75,000 (or more then $150,000 if married filing jointly), the payment will be reduced of phased out completely.
To qualify for the payment, an individual, spouse, and any qualifying child must have a valid Social Security number. In addition, individuals can not receive a payment if they can be claimed as a dependent of another taxpayer or they filed a 2007 Form 1040NR, 1040NR-EZ, 1040-PR or 1040-SS.
All individuals receiving payments will receive a notice and additional information shortly before the payment is made. In the meantime, for additional information, please visit the IRS website at www.irs.gov.“
While that is all fine and dandy, why is the government excluding people that make over $75,000? They are the ones that paid the MOST in taxes, which is what is funding this government giveaway…
Sadly, most people believe some huge myths:
- Rich people pay little to no taxes
- Rich people are all insanely wealthy like Gates and Buffett
The truth is, folks who have become moderately successful, simply to the point of being able to invest savings wisely are BURDENED with taxes and pay the BULK of the taxes that the country runs on.
The bottom 50 percent of tax payers earn 13% of the money and pay <3% of the taxes.
Even under Bush’s tax cuts, the rich actually pay more than they used to pay.
I’m astonished at the lies and myths that are in common belief
you got way tooooooooooooooooo much time on your hands
Well said.
I just ran across this and wanted to see what little I could say on the subject.
I want to address the original question:
“[W]hy is the government excluding people that make over $75,000?”
In an economic stimulus plan the idea is to get money INTO THE ECONOMY (emphasis added but not meant to rub it in).
When I took economics, at a very conservative university, what we were taught was that if you give a person making $12,000-30,000 $100 they go out and spend it (food, gifts, gas, etc.). If you give the same amount to someone making $75,000 then that person tends to put it in the bank.
It is more of a simple question of “who will actually spend this money if I give it to them?”
Frankly, it looks like more like of the right giving money to business, just through the lower end of the tax bracket (dems passed it but with no issue from the pubs or Bush) instead of the higher one this time.
Oh well. I was (am?) against all of the bailouts/stimuluses anyway…