You and the Stimulus Package

by Scott Feldman

As I write this the House has just passed the federal stimulus package. The Senate is expected to vote on it tonight or tomorrow. So, what's in it for Long Islanders? For those lower and middle-income taxpayers there's an extra $13 a week in their paychecks this year, and about $8 dollars a week next year. For upper middle-class families there won't be as big a bite from the AMT--the Alternative Minimum Tax. The unemployed will get a bump in their weekly checks of $25. And benefits will continue for 59 weeks. For anybody who loses their job, the government will be picking up 60 percent of the cost of short-term health insurance--known as COBRA. Food stamp benefits are also increasing. And Social Security recipients, along with those receiving disability checks, will get a one-time bonus of 250 dollars. Long Island commuters won't have to pay tax on up to $230 a month in mass transit costs. That's a pre-tax deduction on your paycheck. Also included in the package, a tuition tax credit up to $2,500 based on income.

There are a couple of big ticket items that are part of stimulus bill. If you are buying your first home and you do it by the end of August, the government will give you an $8,000 tax credit. And if you buy a new car, you'll be able to deduct the sales tax even if you don't itemize on your income tax return.

It could be a while before the dust settles on this massive piece of legislation. Some possible tweaking of numbers mentioned above. If you use an accountant, they are certain to get the fine details. And, we here at News 12, of course, will continue to update you on the latest. In the meantime, here are two good sites to check out: www.tax.cchgroup.com ,  www.irs.gov.  www.ssa.gov

Comments

[John]

Thirteen extra bucks a week in exchange for a thirty thousand dollar tax burden, plus interest? And we're a step closer to a welfare state? Truly, mine cup doth overflow with riches. If the government continues to be this good to us, we'll all break even sometime in the year 4317!

Oh, no. Wait. They're reducing the reduction to eight bucks a week next year. Make that the year 5758.

Meanwhile, the Census Bureau is getting a billion dollars out of the deal, ten times more than is allocated to school meal programs just a page earlier or the Small Business Administration later on. Also, the Western Area Power Administration is allowed to borrow three billion dollars from the Treasury for whatever they need money for.

A few billion dollars also goes to various Homeland Security and related shenanigans.

And, inexplicably, the bill forms the Office of the National Coordinator for Health Information Technology, which (if I read this correctly) lets the federal government tell your doctor which treatments are acceptable for your case, with the goal of reducing health care costs. That's right. The government that's spending trillions of dollars is going to help you save money by telling your doctor whether he's allowed to operate on you!

I gave up skimming, after that point. I have better things to do, today.