New Hampshire
New Jersey
New Mexico
New York
Rhode Island
Law Firm Website Design Companies : The Good, The Bad, and The Ugly

US Congress backs stimulus for troubled economy

  Politics  -   POSTED: 2008/02/08 16:19

The US Congress has overwhelmingly approved a giant economic stimulus plan sought by the White House amid mounting fears that the world's biggest economy could be sliding into a recession. Senate and House of Representative lawmakers approved the economic aid package in separate votes, clearing the way for it to be signed into law by President George W. Bush. "The president will sign it next week," White House spokeswoman Cynthia Bergman told AFP. She said an exact date had not yet been announced.

Bush has hailed the package amid a worsening housing market downturn and a dramatic slowdown in American economic growth.

The stressed economy lost jobs last month for the first time in over four years and a Wall Street credit crunch, triggered in part by rising home foreclosures, has roiled global financial markets in recent months.

"This plan is robust, broad-based, timely, and it will be effective. This bill will help to stimulate consumer spending and accelerate needed business investment," Bush said in a statement released Thursday by the White House.

The plan is valued at around 150 billion dollars and crammed with temporary tax rebates and business incentives.

Tens of millions of Americans are likely to receive tax rebate checks in their mailboxes in coming months after Bush gives the stimulus his official blessing.

Treasury Secretary Henry Paulson also welcomed congressional approval of the package, saying it would inject money into a stressed economy.

"This package of payments to individuals and incentives for businesses to invest will support our economy as we weather the housing downturn," the Treasury secretary said.

Democratic and Republican senators had sparred over different incentives after the House of Representatives passed an initial version of the plan last Tuesday.

The Democratic-controlled Senate approved an amended version of the House measure Thursday which senators changed to include tax rebates for low-income retirees and military veterans.

House lawmakers met in an evening session to quickly approve the final amended package.

The plan calls for tax rebate checks of up to 600 dollars for individual taxpayers and up to 1,200 dollars for couples, plus additional cash for dependent children.

It also expands financing opportunities in the housing market by allowing Fannie Mae and Freddie Mac, two mortgage finance companies, to purchase or guarantee mortgages larger than 417,000 dollars up to 729,750 dollars.

Lawmakers said it will not benefit wealthy Americans, as tax relief begins to phase out for individuals earning 75,000 dollars and for married couples with a combined income above 150,000 dollars.

It will, however, provide "unprecedented" help to some 35 million families who work but make too little to pay taxes, they said.

People who earned at least 3,000 dollars in 2007 are eligible for 300 dollars per individual or 600 dollars per couple, lawmakers said.

Democrats and lawmakers from Bush's Republican Party applauded the plan.

"Today's agreement is a victory for a better, more effective economic stimulus. Economists agree that consumer spending, fueled by tax rebates, can boost America's economy," said Democratic Senator Max Baucus.

Republican Senator Mitch McConnell said:"This is not a victory for Republicans or Democrats. This is a victory for the American people."

It's unclear, however, how much of a boost the vast package will give the troubled economy. Some economists have voiced doubt about whether the plan will deliver a needed shot-in-the-arm to growth.

Its success will depend in part upon whether Americans spend their rebate checks and boost consumer spending or stuff them in bank accounts.

Political concern about the economy has increased amid worries the country is on the cusp of a recession.

The Federal Reserve has slashed interest rates since September in a bid to fire up economic momentum, which slowed significantly to a 0.6 percent annualized crawl during the fourth quarter of last year.

Paulson said the government could start mailing out tax rebates to those eligible to receive them by early May.

Legal News | Breaking News | Terms & Conditions | Privacy | Law Firm Web Design, Attorney Website Design by Law Promo

ⓒ Breaking Legal News. All Rights Reserved.

The content contained on the web site has been prepared by BLN as a service to the internet community and is not intended to constitute legal advice or a substitute for consultation with a licensed legal professional in a particular case.
   More Legal News
   Legal Spotlight
   Exclusive Commentaries
   Attorney & Blog - Blog Watch
   Law Firm News  1  2  3  4  5  6 
   Lawyer & Law Firm Links
San Francisco Trademark Lawyer
San Francisco Copyright Lawyer
Philadelphia Employment Lawyer
Attorney Marc E. Weinstein
New Rochelle Accidents Attorneys
New Rochelle Personal Injury
Canton Criminal Lawyer
Canton DUI lawyer
Surry County Criminal Defense Lawyers
Yadkin County Family Law Attorneys
Oregon DUI Law Attorney
Eugene DUI Lawyer. Criminal Defense Law
Houston Car Accident Attorneys
Wrongful Death Attorneys Houston
Houston Wrongful Death
New York Adoption Lawyers
New York Foster Care Lawyers
Adoption Pre-Certification
Chicago Work Accident Lawyer
Chicago Workplace Injury Attorneys
St. Louis Missouri Criminal Defense Lawyer
St. Charles DUI Attorney
Santa Ana Workers' Compensation Lawyers
China trademark registration lawyer
Eugene Bankruptcy Attorney
Bankruptcy Attorney Eugene
Lorain Elyria Divorce Lawyer
Connecticut Special Education Lawyer
   More Legal News  1  2  3  4  5  6
   Legal News Links
  Click The Law
  Daily Bar News
  The Legal Voice
  The Legal Report
  Legal News Post
  Crisis Legal News
  Legal News Journal
  Law Firm Logos
  Attorney Web Design
  Immigration Law Web Design
  Law Firm Directory