Stimulus package to spur spending - WALB.com, Albany News, Weather, Sports

Stimulus package to spur spending

Updated:

February 14, 2008

Albany -- With the stroke of a pen Wednesday, President Bush signed the Economic Stimulus Act of 2008. The $168 billion measure will bring tax breaks to many businesses and guarantee millions of Americans a check in the mail in the next few months.

"It's gonna be really good. I'm very excited about it," said Keishia Sloan, a mother of two, who will likely get a $1,200 tax rebate check.

She says the money will allow her to have a little extra to spend on clothes. "If I have that $600 or $1,300 or however much you're gonna have, I guess I'm gonna have that to be able to spend it with."

And that's exactly what the government wants her do. Amid talks of a recession, the tax rebates are proposed to build consumer confidence and spending. President Bush calls it a "booster shot" for the American economy.

"It's going to mainly impact the retail market. Hopefully it will stimulate spending and help places in the local markets here like Wal-Mart and the Albany Mall. They are going to be main beneficiaries of this," says Darton College Assistant Professor of Economics Aaron Johnson.

The stimulus package will payout $600 to most individual tax payers and $1,200 for couples. Many parents will also get a $300  per child tax credit - a pay out that will put around $120 billion in American pockets.

"It's geared more towards the lower-middle income households where their disposable income is not as great. They don't have that ability to save as much of their income as higher income individuals," said Johnson.

And while it's still too early to tell if the rebates will pull America away from a recession, it will at least guarantee at least a happy pay day for 120 million American tax payers.

For more infomration click the link below.

http://www.irs.gov/irs/article/0,,id=177937,00.html

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