Update : May’9’2008 – Direct deposits are made by US Treasury and you may see it soon in your bank accounts like the one below.
This is $600 + $600 + $300 (Child) = $1500, The amount may vary depending on dependents and the income level.
If you didn’t receive the tax refund yet then your last two SSN digits condition may not have met, check your payment schedule from IRS –
Previous update : President Bush signed the stimulus package on Feb’13’2008. Earlier both House and the Senate passed the economic stimulus bill. This means we can expect refund checks in May’2008.
Original post :
Soon we can see some fat checks in our mail. Top on my list is to pay off some high interest credit card balance.
Strong evidence is emerging that consumer spending, a factor in determining recession is in a visible distance as energy prices surged and the housing market sputtered, has begun to show its ugly shocks at every level of the American economy, from the working class to the wealthy. Slowness in US consumer spending is effecting US GDP.
GDP is made up of these components : (Simplifying)
GDP = consumption + investment + government spending
Recession has many definitions as one says continuous six months of declining GDP pushes economy into recession.
The Bush administration is calling for temporary tax relief worth about $140 billion or more, reportedly in the form of tax-rebate checks of up to up to $600 for individuals and $1,200 for couples.These rebates may not be available to all and would be available to those below a certain income cap, likely $75,000 adjusted gross income for individuals and $150,000 for families.
This refunds are supposedly be sent in June if everything goes okay and relief is accepted by the house.
The idea behind these ‘Economic Stimulus’ plans is to get money into the hands of consumers who will spend it quickly, thereby revving up demand and “stimulating” the economy back to good health.
On the investment component of GDP, Fed is trying to cut interest rates drastically (75 basis points on last Tuesday) making it possible for ailing banks to borrow money at lower rates.
These two news 1) Economic stimulus package and 2) Fed cutting interest rates is giving temporary relief to Stock market as witnessed this week.
We gotta see if these measures are short term or fix the economy some what long term.