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Rep. Gillibrand Votes
for Tax Rebates
Legislation will be
signed into law by the President within days; tax rebates expected by early
summer
Washington,
DC – Today, local Congresswoman Kirsten Gillibrand voted in favor
of the Economic Stimulus Act of 2008 [H.R. 5140], the joint House-Senate
Economic Stimulus Package. This bill will be sent to the President and is
expected to be signed into law within days. The Economic Stimulus Act of
2008 will provide all working, middle class families with a tax rebate.
This
package will benefit more than 130 million American families. Couples will
receive up to $1,200, plus $300 for each child. This bill is more
comprehensive than the original House passed bill, because it will provide 20 million
seniors living solely on Social Security and 250,000 disabled veterans with
stimulus checks. Rebate checks could be
sent as early as mid-May.
“This
Economic Stimulus package accomplishes the goal of boosting our economy by
putting more money back into the hands of hardworking families. I
strongly support the Senate’s additions to bill, and I look forward to the
President signing the bill,”
Congresswoman Gillibrand said.
Earlier
this week, Congresswoman Gillibrand sponsored the Immediate Financial
Assistance for America’s
Seniors Act [H.R. 5172], which would ensure that all Social
Security-dependent seniors receive a tax rebate in the pending Economic
Stimulus Package. In the previous bill, social security benefits were not
defined as earned income, which is necessary in order to qualify for a rebate.
The
legislation also includes tax cuts for small businesses. The bipartisan plan doubles the amount small businesses can
immediately write off their taxes for capital investments made in 2008 from
$125,000 to $250,000, for purchases of new equipment of up to $800,000 (up from
$500,000). Earlier this month, Congresswoman Gillibrand sponsored the GROW Act
[H.R. 5107], which contained this specific small business tax cut.
Additionally, H.R. 5140 provides immediate tax relief for all businesses to
invest in new plants and equipment by speeding up depreciation provisions, so
that firms can write off an additional 50 percent for investments purchased in
2008.
In
addition, the Recovery Rebates and Economic Stimulus for the American People
Act will include provisions to help families avoid losing their homes to
foreclosure. The bill expands affordable mortgage loan opportunities for
families at risk of foreclosure through the Federal Housing Administration, and
enhances credit availability in the mortgage market by increasing the loan
limits for Fannie Mae and Freddie Mac.
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GILLIBRAND’S FACT SHEET ON TAX REBATES:
Married
with children:
1)
Married couple with two children1, earned income of $4,000, no federal income
tax paid.
•
Individual rebate = $600
•
Child tax credit = $600
TOTAL
= $1,200
2)
Married couple with two children, earned income in excess of $3,000, income =
$45,000, federal income tax is $323.
•
Individual rebate = $600
•
Child tax credit = $600
TOTAL
= $1,200
3)
Married couple with two children, income = $48,000, federal income tax is $773.
•
Individual rebate = $773
•
Child tax credit = $600
TOTAL
= $1,373
4)
Married couple with two children, income = $80,000, federal income tax paid in
excess of $1,200.
•
Individual rebate = $1,200
•
Child tax credit = $600
TOTAL
= $1,800
5)
Married couple with two children, income = $160,000, federal income tax paid in
excess of $1,200.
•
Individual rebate = $1,200
•
Child tax credit = $600
•
Phaseout reduction = ($500) [5% x ($160,000 - $150,000) = $500]
TOTAL
= $1,300
Head
of household with children:
1)
Single parent with two children, earned income of $4,000, no federal income tax
paid.
•
Individual rebate = $300
•
Child tax credit = $600
TOTAL
= $900
2)
Single parent with two children, earned income in excess of $3,000, income =
$38,000, federal income tax is
$433.
•
Individual rebate = $433
•
Child tax credit = $600
TOTAL
=$1,050
3)
Single parent with two children, income = $60,000, federal income tax paid in
excess of $600.
•
Individual rebate = $600
•
Child credit = $600
TOTAL
=$1,200
4)
Single parent with two children, income = $90,000, federal income tax paid in
excess of $600.
•
Individual rebate = $600
•
Child credit = $600
•
Phaseout reduction = ($750) [5% x ($90,000 - $75,000)]
TOTAL
= $450
Married,
no children:
1)
Married couple with no children, earned income of $4,000, no federal income tax
paid.
•
Individual rebate = $600
2)
Married couple with no children, earned income in excess of $3,000, income =
$20,000, federal income tax is $930.
•
Individual rebate = $930
3)
Married couple with no children, income = $25,000, federal income tax is $1,430.
•
Individual rebate = $1,200
4)
Married couple with no children, income = $160,000, federal income tax paid in
excess of $1,200.
•
Individual rebate = $1,200
•
Phaseout reduction = ($500) [5% x ($160,000 - $150,000)]
TOTAL
= $700
Single,
no children:
1)
Individual with earned income of $4,000, no federal income tax paid.
• Individual rebate = $300
2)
Individual with earned income in excess of $3,000, income = $10,000, federal
income tax is $125.
• Individual rebate = $300
3)
Individual with income = $16,000, federal income tax is $725.
• Individual rebate = $600
4)
Individual with income = $80,000, federal income tax paid in excess of $600.
• Individual rebate = $600
• Phaseout reduction = ($250) [5% x
($80,000 - $75,000)]
TOTAL
= $350
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