Tax rebates deal in the process of negotiation by Milota Sidorova

WASHINGTON & Adventitiously quick and intensive negotiations of squeamish question of tax rebates between Congress and the White house took place on Thursday Jan 24,2008. The new obligation should affect the most tax filers by next spring and is expected to be an impulse, that should bring the lame economic to the life. Rebates as the main point of an agreement have to bring about $150 billion into this year's economy and probably reverse the first slump since 2001. Almost $100 billion should impact million of households, depending up to their incomes, tax payments, a number of children etc, while the business sector would gain over $50 billion in incentives to invest in new plants and equipment. According to the schedule of tax rebates that plans to shed the score, individual taxpayers would get up to $600 in rebates, while working couples $1,200 and those with children an additional $300 per child under the agreement. The one time support is planned even for the working households, that earn at least $3,000 but don't pay taxes. President Bush is convinced that this package would lead to higher consumer spending and would increase business investment. This agreement raised eyebrows of many Democrats, including Charles Rangel, Ways and Means Committee Chairman, D-N.Y, who suggest the government just dropped out the increases in food stamp and unemployment benefits in exchange of tax rebates. According to his opinion, the plan is unfair to groups of people without work. "I do not understand, and cannot accept, the resistance of President Bush and Republican leaders to including an extension of unemployment benefits for those who are without work through no fault of their own," he quotes. If the negotiations will go smooth way and Senat will declare this obligation, the first tax rebates payments will be going out in May, so they will be available for most of the people in July.

related story: http://news.yahoo.com/s/ap/20080124/ap_on_go_co/economy_stimulus;_ylt=AmrfR0kEgnYsBCbkF6oz1Sas0NUE

by Milota Sidorova for PocketNews (http://pocketnews.tv)

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