Legislators passed the $790 billion stimulus package last week which includes:
- A $400 tax credit for single workers and an $800 tax credit for couples.
- A $1000 child tax credit which will be extended to some low-income families who don’t make enough money to pay income taxes and poor families with 3 or more children will receive an “expanded Earned Income Tax Credit.
- Middle-income and wealthy taxpayers will not have to pay the Alternative Minimum Tax.
- First-time homebuyers, who purchase a home before December 2009, will receive an $8,000 tax credit.
- Consumers who purchase new cars by the end of 2009 will be able to write off the sales taxes.
- The government will pay 65% of Cobra for unemployed workers.
- The stimulus also will fund public works programs, education and the expansion of the police force amongst other things.
The stimulus package has a lot of incentives for the taxpayer but will it create jobs? As the unemployment rate increases and the number of foreclosures rise will Americans feel secure enough to purchase a new home, buy a new car or buy anything for that matter? Right now, everyone in on edge as more employers go bankrupt, shut their doors, implement job losses and/or slash salaries. Unfortunately, we may have reached the tipping point because even with these additional benefits, many ordinary Americans will succumb to foreclosure and other financial disasters.