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Americans to get rebate checks by spring

(Agencies)
Updated: 2008-02-14 10:35

Washington - The checks aren't in the mail, but they will be soon. US President Bush signed legislation Wednesday to rush rebates ranging from US$300 to US$1,200 to millions of Americans, the centerpiece of government efforts to brace the wobbly US economy.


Shoppers in San Francisco in late 2007. US President George W. Bush has proposed a record 3.1-trillion-dollar budget for fiscal 2009 that widens the government deficit with an economic stimulus and expenditures for the war in Iraq. [Agencies]
 

More than 130 million people are expected to get the rebates, starting around May. US Congress, Bush, the Federal Reserve and Wall Street are hoping the money will burn such a hole in people's pockets that they won't be able to resist spending it. And the spending is supposed to give an energizing jolt to a national economy that is in danger of toppling into a recession if it hasn't already.

Whether people actually spend the money remains to be seen. A recent Associated Press-Ipos poll indicates most people have other plans. Forty-five percent said they planned to pay off bills, while 32 percent said they would save or invest it. Only 19 percent said they would spend their rebates.

The measure Bush signed, a US$168 billion rescue package passed with lightning speed by Congress last week, includes not only rebates for individuals but also tax breaks for businesses to spur investment in new plants and equipment. That, too, would help bolster US economic activity. The package also contains provisions aimed at helping struggling homeowners clobbered by the housing collapse and the credit crunch refinance into more affordable mortgages.

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The emergency plan marked a rare moment of cooperation among political rivals fearful that an ailing economy during an election year would invite voter retaliation.

Bush, who called the measure "a booster shot for our economy," praised the bipartisan cooperation. "We have come together on a single mission -- and that is to put the people's interests first," he said.

Who gets a rebate? Most people who pay taxes or earn at least US$3,000, including through Social Security or veterans' disability benefits. Singles making more than US$75,000 and couples with income topping US$150,000, however, will get smaller checks, up to the top limits for any rebate: incomes of US$87,000 for individuals and US$174,000 for couples.

To get any rebate, one must file a 2007 tax return and have a valid Social Security number.

Most taxpayers will receive a check of up to US$600 for individuals and US$1,200 for couples, with an additional US$300 for each child.

People earning too little to pay taxes but at least US$3,000, including elderly people whose only income is from Social Security and veterans who live on disability payments, will get US$300 if single, or US$600 if a couple.

The IRS will send out rebates, by mail or by direct deposit into your bank account, through the late spring and the summer. The rebates come in addition to any regular tax refund.

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