$150 Billion Tax Relief

It appears the tax cuts are coming in the next month or so to try to stimulate the economy.  President Bush and House negotiators have approved the framework of an agreement, subject to the Senate's some changes.

Most likely the outcome of the package will be:

Tax rebates of around $1,200 for married and $600 for singles.  Taxpayers with children under 17 will get an extra rebate of $300 a child.

Rebates will start to phase out at $150,000 of adjusted gross income (AGI) for married and $75,000 for singles, falling by $50 for each $1,000 over these amounts.  2007 AGI will be used.

Small businesses will be able to expense up to $250,000 or so of assets in lieu of depreciating them.  That's nearly double the ceiling currently in effect for this year (2008).  In addition, 50% of the cost of new assets purchased in 2008 that aren't expensed can be written off the first year as bonus first-year depreciation.

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