Tax+cuts

What tax cuts are in the stimulus package and how will they potentially affect the economy? There is great potential with these tax changes; the hope is that with the lower taxes upon the middle and lower class, the daily spending of the average American will increase. The stimulus package as of now consists of $768 billion, of this $288 billion is going to taxes and tax cuts. The money is going to be distributed throughout the other sections of the stimulus plan to ensure that those plans are given adequate funding. Which includes $15 B for Infrastructure and Science, $61 B for Protecting the Vulnerable, $25 B for Education and Training and $22 B for Energy, so total funds are $126 B for Infrastructure and Science, $142 B for Protecting the Vulnerable, $78 B for Education and Training, and $65 B for Energy. Also among these plans, Barack Obama intends to remove all the tax cuts that the Bush administration had set in place. With the current situation, the tax cuts set in place are only going to make the situation worse. By eliminating these tax cuts, it can further increase the budget, hopefully helping to bring the economy back to a good footing. With the tax cuts, there is an intended plan to increase taxes upon those with higher income, along with increased taxes upon big industries who are responsible for destroying the environment. To finalize all these, Obama plans to remove some of the tax loopholes, which allow those with high incomes to reduce their taxes. "Instead of having all of us pay our fair share, we've got over $1 trillion worth of loopholes in the corporate tax code," he said. "This isn't the invisible hand of the market at work. It's the successful work of special interests." Along side this plan, there are plans to lower the taxes of the working and middle class, with bonuses paid to those who pay their taxes.400-500$ for individual, 800-1000$ for families.  Approx. 35%of the Stimulus package is going to tax cuts. Almost everybody will benefit from this plan. Here is a list of seven groups of Americans who stand to gain something: 1. Wage Earners & The Self Employed- The incentive to single and coupled taxpayers is based upon how much income is brought in. With the incomes of individuals phasing out after 75,000$ and couples phasing out after 150,000$. Instead of giving a lump sum, the IRS intends to give out 30-40$ a month out of the normal taxes of each individual. 2. First- Time Home buyers- First time homebuyers will receive a tax credit of up to 8000$ if the home is purchased during this year. The house must not be sold within 3 years to receive the credit. 3.Homeowners Looking to Improve Home Energy-Efficiency The tax credit received is 1500$ for the max energy efficiency credit and 30% of the cost of the renovation. 4. Vehicle Buyers Buying a new vehicle will earn them a tax deduction on the first 49,500$ of the vehicle cost. The deductions will phase out for those whose incomes are 125,000$ for individuals and 250,000$ for couples. 5.Students- The American Opportunity credit will increase to 2500$, with the first 2000$ of tuition and related expenses per year. 6. The Unemployed- 7. Middle Class People Scheduled to Get an AMT Tax Hit Where we got our sources: [] __[]__ __[]__ __[|http://www.cnn.com/2007/POLITICS/09/18/obama.taxplan/index.html]__ []

Tax Cuts related to the stimulus package The basic outline of what the stimulus package does for tax cuts is that first of all, many of former president Bush's tax loopholes will be eliminated. This will make big coperations and wealthy people pay more of a "fair rate." Now since these people are now paying more money in taxes that will obviously increase the income that the goverment takes in. And as for the middle and lower classes, supposedly they will recieve from 800 to 1000 dollars per person in tax refunds. Also their is some tax refunds for the elderly and disabled. Now this part is very unclear, nobody seems to know how or when the people will recieve these tax refunds but the purpose behind them is to put more money back into the pockets of the consumers. But their is a catch, to pay for these tax refunds some experts say that once the economy is on the turnaround we will see dramatic hikes in taxes which is a democratic trait (spending more, taxing more). Overall the whole tax cut system in place is very unclear and vauge. So whose to say if this is a good or bad paln, I guess we will just have to wait and see. []