The Economic Stimulus Package: How it affects your life

by Dr. Boyce Watkins
www.BoyceWatkins.com

Many Americans have heard about the new stimulus package signed by President Bush. The package is designed to do one thing: Get consumers to spend more so they can continue to strengthen the economy. Sounds good in theory, but in practice, it is simply asking us to keep spending, which is what got us into this economic mess in the first place. What is also true about all this is that much of our excessive consumer spending has been built on the economic backs of our children, as it has largely been financed by debt. Americans have had 16 straight years of increased consumer spending and the government doesn't want the party to end.

Here's some info on the stimulus package and how it will affect your life:

If you pay taxes and your income is below $75,000, you will get a check for $600. Couples who earn less than $150,000 per year will receive $1200.

There is a child tax credit of $300 per child. Add that to the $600 per person you receive above. Finally, producing children is considered a good thing.

If you are a worker who earned at least $3,000 per year, but your income was too low to require that you file a tax return, you will receive $300.

Those with big money (incomes above the max) will still be eligible for the tax rebates. The rebate you receive will be reduced by a nickel for every dollar you earn above the cap. So, an individual earning $85,000 per year would receive $100 ($600 - $10,000 x .05).

There are other details of the package, but the meat of the package lies in the rebates. My advice to you: save the money or invest it. Even if you don't spend, the recession is going to end soon anyway.