Browsing Category: "Economic Stimulus"
Economic Stimulus Package Plan
The Taxpayer’s Dozen
There are 12 areas of the economic stimulus package plan:
Tax relief, child tax credit, jobless benefits, health care, energy, education, infrastructure, science and technology, law enforcement, jump start on jobs, business breaks and accountability. To Democrats, this plan represents stabilizing the economy where it will see the most progress – helping people help themselves. To Republicans, it is perceived as a huge loss of revenue where it will do big business and the military, two areas upon which Republicans base their version of financial stability.
A Networked Plan of Economic Stimulus
Unlike prior economic stimulus plans, i.e., millions to big business in 2001, tax cuts for the richest 1% and $350 billion to the bailout financial institutions, the Obama plan gets to the heart of why all other plans have failed…excising the middle class from benefiting in equal proportion. In the Obama plan, every area is carefully networked so that the results stabilize working class Americans. The middle class during the took several simultaneous hits taxes that incurred further debt, taxes on consumables and taxes that trickled down to create higher state income and property taxes. Allowing Americans to keep an additional $500-1,000 of their income reduces the burden of eroding paychecks and increasing costs of living. With added help from the child tax credit, working parents get to keep more of their hard-earned incomes if their salaries are under the $150,000 cap. So, the first two areas begin to immediately relieve the economic balloon about to burst from pressure of too many taxes at too high a rate. For those who are jobless as a result of economic layoff or job evaporation, the additional aid to jobless benefits may stave off the increase in the number of people living below the poverty level. Science &Technology, Law Enforcement, Jump Starting Jobs, Business breaks and accountability fit well into this network as definitely doable and pragmatic.
The Big Four of the Economic Stimulus Plan
There are 4 very big areas of this plan: Health care, energy, education and infrastructure. Health care, unless it is totally revamped will affect the outcome of all 11 related parts of this plan. Health care is unaffordable not only for average Americans but for business as well. Until that issue is resolved, none of the other areas of the plan can work. No job will be secure if health care continues to spiral out of control. No business will take the chance of hiring more employees they know will jeopardize the health care benefits of their existing staff. And, until age discrimination is resolved with regard to HMOs, older Americans who want to work past retirement will be considered undesirable and costly. The cost of education will increase as a result of increasing costs of benefits for education employees. Any revenues freed for other parts of the plan will be eroded by the cost of health care. Health care costs must be reined in before issuing revenue to education, energy and infrastructure. To overlook the ramifications of unaffordable health care is a serious loophole in the fabric of the economic stimulus plan.
For more information on the economic stimulus package, visit http://www.stimulus2.com.
How The Economic Stimulus Bill Will Help The Housing Market
The economic stimulus bill formally called as HR 5140 was approved by the senate with an overwhelming vote of 60-38. The stimulus package amounted to a gargantuan $787 billion, it is an ambitious package of federal spending and tax cuts designed to revive the United States economy and save or create millions of jobs.
There are many hopes riding on the package and it is generally viewed as the savior of the US economy and the world economy as well. Last week, President Barack Obama signed it into law in order to start the economy down the road to economic recovery.
In summary, the stimulus bill will provide one-time rebates to roughly one hundred and eleven million families, provide tax breaks to businesses, and ease mortgage loan limits. Now what’s more important to most of us if you agree is about the provisions of the stimulus bill and its effects homeowners. The housing bubble has been considered by many as the root cause of the economic downturn.
First the bill is aimed to create about 3.5 million jobs, providing respite to homeowners who have lost their jobs.
Second, the bill can provide homeowners the much needed cash via tax breaks. Tax breaks can amount to $400 for individuals and $800 for couples on the first payment alone.
Third, there’s a homebuyer tax credit provision which provides a $7,500 tax credit to first time homebuyers up to a maximum of $8,000. The good news is, you don’t have to repay the $8,000. The credit is available to homeowners with gross income of $75,000 to $95,000 for individuals and $150,000 to $170,000 for married couples. The definition of “first time” homebuyer is someone who hasn’t purchased a house in the last 3 years. As a form protection, the bill will force a recapture of the entire $8,000 tax credit if the home is sold within 3 years of purchase.
And lastly, the bill extends the increase in loan limits that were passed in 2008. The limits are 125% of the median home price for the local area for FHA and $417,000 for Fannie and Freddie. Giving people access to more credit will help people feel they are in a better financial position and help spark an increase in home purchases.
The positive effect of the stimulus bill on housing doesn’t end there. President Obama also hinted of a $50 billion plan to help stem foreclosures in heavily affected states like Arizona. The president’s economic team will be providing the public, the details of the plan to prod the mortgage industry to do more in modifying the terms of home loans so borrowers have lower monthly payments.
All these provisions are aimed at alleviating the house foreclosures which have increase to a record high of 81% from the year 2007 and might increase further depending on the effectively of the economic stimulus bill.
Last February 12, the 30-year fixed-rate mortgage averaged 5.16 percent which is 0.56 percentage points off from last year’s. This has lead to an increase in mortgage refinance applications. At the same time, it also shows the positive impact of the stimulus bill.
Old Colony Elderly Services Alerts Elders and Disabled Veterans of October 15th Filing Deadline for Economic Stimulus Payment
DATELINE: PLYMOUTH COUNTY AND AVON, EASTON AND STOUGHTON, MA.
According to the IRS, there are an estimated 117,000 retirees and disabled veterans in Massachusetts who normally don’t file a federal income tax return but may be eligible for the stimulus payment.
OCES is a private, non-profit Aging Services Access Point (ASAP) that provides valuable programs and services to seniors, their families and caregivers. The agency can provide guidance to seniors and disabled veterans who need assistance filing a federal tax return prior to the Economic Stimulus deadline of October 15th.
According to the IRS, older Americans and disabled veterans who have no tax liability and who have no requirement to file a tax return because their income is too low or nontaxable, may receive a stimulus payment of up to $300 ($600 for married couples) plus a $300 payment for each qualifying child.
According to Diana DiGiorgi, OCES’ Executive Director, “It’s imperative that seniors and disabled veterans file before October 15th in order to receive payment. We can assist seniors and disabled veterans in determining if they meet eligibility requirements to qualify. By law, the IRS cannot disperse any payments after December 31st, so we strongly urge anyone who believes they are eligible to file a return; contact a tax professional; or contact us for more information.”
OCES serves elders, their families and caregivers in the towns of Abington, Avon, Bridgewater, Brockton, Carver, Duxbury, East Bridgewater, Easton, Halifax, Hanover, Hanson, Kingston, Lakeville, Marshfield, Middleboro, Pembroke, Plymouth, Plympton, Rockland, Stoughton, Wareham, West Bridgewater and Whitman.
To inquire about Economic Stimulus Payments, contact OCES at (508) 584-1561.
About Old Colony Elderly Services
Incorporated in 1974, Old Colony Elderly Services (OCES) is one of 27 private, non-profit Aging Services Access Points (ASAPs) in the Commonwealth of Massachusetts.
The organization’s mission is to provide services that support the dignity and independence of elders by helping them maximize their quality of life; live safely and in good health; and, prevent unnecessary or premature institutionalization.
The agency has 130 employees and operates more than 12 programs serving elders, their families and caregivers. For more information call (508) 584-1561 or visit the website at www.oc-elderly.org
