With the economy verging on a recession which would increase public anger with his administration and the Republican Party, President Bush this past Friday bowed to political pressure and proposed a nearly $150 billion stimulus package aimed, he said, at giving the economy "a shot in the arm."
The Bush proposal basically consists of tax rebates.
What does the proposal mean for American Blacks? In dollars terms, it could mean as much as $800 in tax rebates for individuals and $1,600 for families.
The Democratic controlled Congress must still have its say but if differences in approach can be worked out quickly, Blacks (along with other Americans) could start getting their rebate checks as early as this coming April or May.
The battle will probably center around Democratic demands for less focus on business tax breaks and a greater concentration on tax breaks aimed at the middle class (Those making less than $150,000 a year).
Democrats are also expected to insist on an extension of unemployment benefits. Bush increased the likelihood that differences will be quickly resolved by dropping his demand that his previous tax cuts be made permanent.
Some Democrats and Civil Rights advocates have derisively labeled those cuts "tax cuts for the rich." (Source)
Now the premise behind Bush's plan is that by giving Middle class families tax-rebates they will most likely go out and spend this money thus giving the economy the added boost that it needs. I'm not sure how this is going to pan out because I know when/if I get a rebate I plan on investing part of it and using the rest to pay bills. I mean don't get me wrong I like to shop just as much as the next girl, but some times you have to get your priorities in order.
So my question to you is what would you do with your rebate?
Sources on Capitol Hill and at the Treasury Department said congressional and White House negotiators agreed upon checks of $600 per individual and $1,200 per couple.
A Democratic aide and Republican aide said there will be an additional amount per child, which could be in the neighborhood of $300.
Checks could be in taxpayers' mailboxes by June, according to an Associated Press report.
To win over conservatives, the package also is slated to include business tax breaks, according to officials in both parties. (Source)