Bush, House Hammer Out $150 Billion Stimulus Bill

Here's some facts about the stimulus package that the President and the House came up with the other week:
  • House Minority Leader John A. Boehner (R-Ohio) agreed to offer $28 billion in cash payments to 35 million working families that earn too little to pay income tax.
  • The deal includes provisions from Boehner that would allow faster tax write-offs for corporate investment and immediate tax deductions for small-business investment in plants and equipment.
  • Bernard Baumohl, managing director of the Economic Outlook Group, said the package would have a positive psychological impact on markets and investors.
  • But he cautioned: "Practically speaking, this plan is not expected to have any meaningful impact on the economy until much later this year, perhaps in the fourth quarter. Even then, it's unlikely we'll see more than an extra blip in GDP growth."
  • Under the deal, nearly everyone who earned a paycheck in 2007 would receive at least $300 from the Internal Revenue Service.
  • The money would be borrowed and would increase the federal deficit.

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