>The US government announced one-time tax rebates to pump about $150 billion into the economy this year and perhaps stave off the first recession since 2001. About two-thirds of the tax relief would go out in rebate checks to 117 million families beginning in May 2008. Businesses would get $50 billion in incentives to invest in new plants and equipment. Basically, Individual taxpayers would get up to $600 in rebates, working couples $1,200 and those with children an additional $300 per child. Businesses can write off 50% of purchases of capital equipment
“This package will lead to higher consumer spending and increased business investment,” Bush said in hailing the agreement.
Or will this just delay the recession? The government is trying to help, but as history as shown markets are complex and fiscal policy (government driven) has temporary and limited effect. Hey, given I am working in the US, I am not complaining too much as I get a slice of the rebates. Doesn’t make me want to run out and buy stocks anytime soon though.
Do you think Australia will get such tax breaks if the economy tanks? I think not. Click Here to comment.
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