Stimulus deal: What's in it for small biz
House leaders hashed out a stimulus bill that would bring tax breaks for new equipment investment to small businesses. Does it go far enough?
From Marc Schlebusch, Kansas City, Missouri Why is no one asking how we are going to pay for this? We won't raise taxes and we won't cut spending in other areas. There are rumors that foreign investors are becoming increasingly uneasy in buying our debt. No one is even asking if this is a crushing burden that we want to push on our children and grandchildren.
This is not a debt we can afford. Americans are tightening their belts and starting to save. We have had decades of living beyond our means and we are now beginning to pay for that lifestyle.
It is time the government starts acting responsibly. We are at a cross roads, that much Obama has right. But the road we choose will either lead us out of the dark forest or head us straight to the cliff. The path the government is looking to right now is the one that leads to the cliff.
You would think we learned something from 8 years of deficit spending. Obviously we have not.
From sheilah zimmerman, kingsville, texas what i think is ridiculous and a slap in the face is the cost of living increase that u get every year on disability…r u kidding me? what a joke!!!! i would challenge all those big wigs in the white house to live on that 13.00 dollars we got this year..how sad is that? that won't buy squat!!!and why aren't we gonna get a stimulous rebate? hello we spend money too and have bills just like the rest of you…being disabled is bad enuff much less being slapped in the face with the big NO YOU DO NOT QUALIFY..get a life washington and realize that WE r all in this together…no one should be left out..
From Anonymous Stimulas Package, ah ha ha ha ha ah ah ah
Are you referring to the WELFARE CHECKS!!!!!!!!!!!!!!!!
This whole thing is a sham and will do nothing to the economy.
Let me ask you, is 600.00 going to make a difference in your life, ahahahahhah
Are you so desperate your gonna run right out and spend it.
Ah ha ha ha ha ha h
Pay worship to the BUILDERBERG GROUP.
YOUTUBE the U.S. Concentration camps
From Don Wilkes, Springfield, VA Some people who are concerned about oil company profits should take a course in Econ 101. The real culprits in the cost of gas is all levels of government that tax each gallon of gas a total of 40-58 cents per gallon. Compare that to profits of companies getting oil to us so we can conduct our business. Shame-shame
Let us who depend on gas products and are so heavily taxed vote the bums out.
DDW
From J Spence, Folsom CA What will I do with Mr. Bush's guilt money? Use it to pay for the outragous gas prices which has swallowed up all of my disposable income. Until we get the oil companies out of the Whitehouse someone needs explain to the American people why we are paying such high gas prices while the oil companies are recording record profits.
From scowley M. Siemerling – thanks for pointing that out. It turns out a Congressional summary of the bill that we were sent is in error; you're corrected, and we've updated/corrected the article.
From M. Siemerling, Westchester, NY How does one notify CNN that an article is wrong?
I don't believe their are annual revenue limits being raised in the stimulus package; it's the cost of the ection 179 asset that is being raised from 500 to $800,000.
From Edward D. Lagarde, Cumberland, RI As an owner of a small business the depreciation bonus will not provide me any incentive to increase the number of employees. I don't understand why are politians don't talk to small business to see what would stimulate hiring. Congress needs to stop making decisions in a vaccumen.
From Todd Langley I own 2 small business's with Sales around $6 million and giving me a tax break on equipment purchased in 2008 will not give me any incentive to buy now. The only way increasing section 179 deductions would help me spend now is to make it retroactive to 2007. Is that being considered in the negotiations?
From Diane Whitley Give a man a fish and he can eat for a day; give him a fishing rod and he can feed his family for a lifetime…
The stimulus package needs to be structured more like the WPA/CWA plan passed by FDR. It needs to concentrate on infrastructure improvements and jobs creation. This has a proven track record- bringing us out of the worst economic situation- a depression. Bush's plan has a proven track record too… it ended with this recession. This plan has the added bonus of preventing more Minnesota bridge collapse tragedies. It is also funded primarily by bond issues– the bond market is the place that scared or cautious investors are putting their investments now anyway. The money earned will be used to make mortgage payments, pay taxes into the local economy, and purchase goods and services locally. Tax breaks and tax rebates will be spent to prop up foreign economies and workers. The US is currently bleeding green– handing out green to outsourcers or offshore companies will accelerate this.
From Brett What happens with the conforming loan limits in the Senate bill? This was an important part of the house bill and was completely left out of the article.
From Terry Ingalls this stimuli deal is BS!, They have left out a whole class of people~ the poor! anybody who has a job and is making over the IRS guidelines of what is poor does not need economic stimuli as they are goddamn lucky they have a job! i do not have a job, i am on ssi after having a stroke at 50 years of age,no thanks to the us health care system! A poor person is likely to go out and buy food,booze,cigarettes all of which is made in the usa(and about the only thing left) and will come back around and stay in the usa. folks making 75G a year will likely now go out and buy the newest HDTV and send the stimuli to china. 500 dollars to a person making that kind of money is chump change! I am totally incensed over the stimulus and also note that i will most likely not even see 1 cent as i do not qualify. i make 600$ a
month now on ssi,try that for awhile. thats gas money for the 35 to 300K chumps. also please note, if i was making 300k a year i would go out and buy a mustang gt.
regards
terry ingalls (who probably will not see any stimuli)
From Jackie Hahn I have a cousin that is 17 living with me. She is currently receiving a death benefit check monthly since both of her parents are deceased. I would like to know if she would be eligible for this benefit as well? If you are unable to provide an answer, is there someone you can suggest I contact?
From H James, Chicago, IL Does it go far enough?
Well, do businesses — small medium or large – need to be told again that government will reward investments in capital over investments in labor?
Do less-than-large businesses think that the accelerated depreciation provision in the so-called "economic stimulus package" is inconspicuous enough to escape detection by individual US taxpayers?
Do businesses think Senators should preface the business provisions in the "economic stimulus package' with an ironic salute to the apparent willingness of American business to trade honor for greed.
From Don Morin Congress, Here is a challenge for you. Those, like me on a fixed income, the cola raises don't even come close to the actual cost of living annual increases. Every Senator and House Representative should have 100 people each in that category do a free study for them over the period of one year. Create a form on where money is spent and see the actual COST OF LIVIVG NEEDED versus what they think it should be. I'll even volunteer myself.
From Roland, Chicago, IL The Senate stimulus package is much better then the House bill. By extending unemployment will put money right back into the market place while tax rebates are given to the American people. The House fail short and off the path of keep the economy somewhat stable. The real issue is an investigation into the mortgage and banking industry and companies that allowed these sub-prime loans to be approved without respect the the fair house and lending laws. Also, the investment and securities, this by fair is not over…it's as close to the 1920's stock market crash.
From MB, Lawrenceville, GA Why is it that all Washington can think about is placing a bandaid on a chronic condition? This stimulus package may look good for small businesses right now, but the tax rebates and the threat of extending unemployment benefits & food stamps—-this is placing a bandaid on a wound that will not heal unless there is real change. Permanently put money back into the people's pocket. Do people really think businesses pay taxes anyway? They pass the cost of the taxes on to the consumer. So let's try some change—abolish the IRS and institute the FAIR TAX immediatley. This is a consumption tax that widely broadens the overall tax base. The government gets to collect MORE money and WE THE PEOPLE (as in the Declaration of Independance) have more money in our pockets to spend. This actually puts the power back in the hands of the people which is what our founding fathers fought for. (Maybe the government does not want us to have any power—does that sound a little like communism or socialisme–like The Communist Manifesto?) WE might just boost the economy in ways that were never even imagined. WE can pay off our debts and provide more for our families. We would not be struggling to provide a decent education for our children. We could bring back ingenuity and innovation to the United States instead of getting it overseas. We could afford not to outsource our own citizens jobs to communist countries who could care less about human rights. The list goes on and on. The moral of the story is we need a change. And by the way, close the darn borders. Let's keep our healthcare systems from being drained and prevent the fearful impending doom of losing access to healthcare because the institution could not afford to keep the doors open.
From Christine St Petersburg Florida Extra money is always great but at what cost as it will be taxed next year. I am tired of the quick fix mentality. If you really want to make things fair to everyone then treat everyone equal!!! Lower income tax, lower gas prices (the fact that one of the top stories was that Exxon broke a profit record is ridiclulus! Gas prices need to be regulated)remove the social security income cap, stop congressional pay increases (and not to mention stop any government official from continuing to receive a salary even when they are no longer in office or the fact that they may not pay social security and medicare)
From PJ,Clyde Mo What about Housewifes & Stay @ Home moms? Is this not WORK…We go unrecognized And very much Unappriciated except when someone needs something then WHO is there? MOM or the Wife in Bed…WRONG answer…..We work right along with our spouses ^ work just as hard as anyone else. We NEVER get a fair place in todays society. We have them,Feed,Bath & take care of them 24/7 352 days a year for AT LEAST 18 years. Dr with them Sleepless nights so our spouse can go to work.Some Like me Have a full time Job Dring More then some..Like Me with a Child that has Cancer for 17 years & She herself CANT even get health insurance.I also Had Cancer & To this day cannot get any assistance due to being over 18 & have had worked in my younger years. They say I am over 18 & DONT qualify. Even though I have a disability. But Still I see Others Whom Dont have a disability & GET ALL kinds of assistance.Its Discriminating. We are a FULL TIME babysitter,Health Care provider,Cook, Cleaner,Taxi Driver,Tear wiper,A HUMAN Guinee PIG so to speak……Just unpaid & Unrecognized unless someone wants or needs. We ARE HUMAN Workers to..Are we NOT? Wifes & Mothers Should NOT be EXCLUDED…….
From Joanne Vande Zande Mayville, WI Extended unemployment benefits would actually go a long way in stimulating the economy. And it wouldn't cost the taxpayer anything. It is already just sitting in a fund. But the government doesn't want to do that as the unemployment rate would then skyrocket as the unemployed are back on the roles. Then people would really know how bad our economy is. They keep saying we have "left the workforce" What a farce. I and many like me want to work but can't find a job. Thanks illegal immigrants, thanks outsourcing, and thanks to our government officals who have destroyed what was once a great country.
From Greg Ryker, Sunnyvale CA Perhaps we could spend the $150 billion as a start towards the $1.6 Trillion in defferred infrastructure maint. in the US. Seems like having some of our bridges not fall down and some damns not collapse might be a nice side benefit of the stimulus…
From Michael Ladanyi Port Orchard, WA I get $1222 per month in SS. Did the pres. think I don't need a rebate or won't spend it?
From Joe Jackson, MS Lets see I'll get oh about $1000 – 1200 and another $300 for my daughter and guess what it's going to pay a credit card or retirement. Thanks Fed's, you should take my money and pay the debt with it
From Jon Dough, Sterling Heights, MI Only the world's largest debtor nation would consider going further in the hole to delay the inevitable.
From Jose Paulo Castro, Weston, FL We the Seniors living on Social Security must have the annual payment increase by not least than 5%. This past year we were given an annual 2.5% increase, that is really insulting and might not even cover for SSA's costs to notify us of the poor news.
Regards,
Jose Paulo Castro, Sr.
From Bill Westendord, Va Bch, VA Let me get this straight. We're going to hand out $150 billion to stimulate our economy. No cash, no problem … we'll borrow from the Chinese or the Middle East and increase the deficit. Dick and Jane take their rebate checks and run off to Walmart to buy Chinese product and to the local Exxon to buy gas from Middle East Oil. So now the Government owes another $150 billion to foreign countries and those same foreign countries have most of the money back so we can do it again. At what point do you think this whole house of cards crashes down on our collective heads?
From Chris, Richmond, Virginia Let's face it…is a rebate check really going to help? I will use it to buy some groceries, go out to dinner a few times with my family, pay for gas, and spend the rest at Wal-Mart on some useless household junk! So..two weeks after getting this check, I blew my windfall and the economy is right back where it was! Can't we find a better way to put $150 Billion dollars to work to jump start the economy?
From jwilson rochester ny Why do we have to put food stamps and energy assistance with a tax refund to individuals who put money into the system then people receiving assistance already.You wouldn't go to a bank and ask for money without an account or any assests.
From 54220 Once again, tax breaks help the medium to big businesses again and leave the small business person out to dry. Help the people to put them in office and the office will help you.Thanks for nothing again !!!!!!!
From Selena, Parkersburg WV Perhaps it should be made clear that this rebate is an advance on next year's refund.
From Bill M. Just where does the income information come from? 2007 Tax filing (covering 2006 income) or 2008 filing (covering 2007 income), which most people haven't done yet? Is it looking at adjusted income? In no article, in any place have a seen anything mentioned regarding the source of income verification.
I appreciate your insight.
From S King Your article states rebates for two-income households will receive $1200. Is this correct or do you mean $1200 for couples-married and filing jointly? Thank you for your time.
From E. Naughton Excellent detail on the stimulus plan.
From Mark Lord, Capistrano Beach, California Is there any idea how 'swiftly' this stimulus package will be pushed through? In particular the portion of this package that applies to conforming loan amounts being eligible to increase 75%.
Thanks, Mark
From KELLY PERRY Maybe your staff could earn the title "business reporter" by doing an article explaining how this will not help small business. Most businesses have idle and excess equipment during this downturn. Any business that needed new equipment looked at their 2007 tax liability in Nov-Dec and purchased any needed equipment then. Some purchased unneeded equipment to save on taxes. Why would they purchase any more now, when equipment is idle, business is slowing, and they have until Dec 31 to purchase for tax savings?
Thank you. kp
From Jim Seminole Oklahoma The Tax Rebate is Great but not so great. Heres an idea, Lower income tax, lower gas prices,lower tuition,stop congressional pay raises. Control credit card companies from raising our interest rates and make them fixed like a home mortgage. Lastly "BRING OUR TROOPS HOME", from a war that is costing more than just money, but mostly our pride as AMERICANS! I have served in the U.S Army in Somalia Africa. What did we acomplish there? "OIL PRODUCTION"! Enough Said!!
From Diem, houston, TX I agree with those who are left out of the tax rebates simply because we have exceeded the set limit. What a bunch of bull! We pay just as much taxes if not more and have just as much debt as those in the lower bracket. I don't think it's fair. We are being singled out again just because we work hard to earn our money. This is injustice!!!!
From Kelly, Garland, Texas The last rebate check. When filing the taxes. I ended up paying more because of it. This just wont work. Watch out next tax time. They will get it back plus interest!
From Rob Harris, Maple Ridge BC, Canada I am wondering where all the cash is going to come from as printing too many un-backed dollars caused this problem in the first place. I will, as a Canadian, try to make more trips accross the border to buy things with our increased dollar exchange. Ihave been thinking the rebates should be in'Gift cards" to help the businesses that need it most. If I can get one I promise to spend it.
From Tom Orlando, FL Sens. Baucus and Kerry will end of screwing things up. Why can't Congress just pass a stimulus package with rebates. No John Kerry has his own plan, why? All these self interest politians and the consumer loses again.
They just don't understand they are dealing with taxpayers money, they think it's their's to spend.
From David, Rochester, MN. Becky- I agree with you. The government needs to consider those who have higher paying jobs in certain areas only because the cost of living is higher. You could be making $70,000.00 in the Midwest or making $90,000.00 in California doing the same job but just a different cost of living.
From Alan, Lake Elsinore, CA Hello people…if you pay taxes in this country like many of us hard working, middle-class people do each year …you shall be entitled to a rebate check no matter what your income may be! I personnally don't want one…the government going to tax you anyway in 2008 on their so-called tax rebate. It's lose-lose situation as far as I am concerned.
From Mike Zionsville IN This is all puffery, Washington is totally out of touch with what is wrong with our economy.
The problem is thst poor and middle class families have run out of money to spend. This is because family income hasn't and isn't keeping up with inflation … real inflation which includes the cost of fuels and food.
Tax cuts don't help people who pay little or no federal taxes and are seeing ever increasing local and real estate taxes.
A temporary payback from the government is temporary.
From Becky, Temecula, CA In 2000 the tax rebate check did not come to me because my income was low as I was in college bettering myself. Now in 2008, the tax rebate will miss me again as I am now in a decent paying job with a new husband also in a decent paying job so the cutoff once again leaves me/us out.
Those of us living in CA or a big city like NY City, or any other place in the US with a higher cost of living have jobs with paychecks that are higher to help offset the cost of living. Why is it that the people running the government don't understand that there are just as many people with a higher income that has debt too!
How about those who had a dream to own a house and was suckered into an Optional ARM loan, and now they can’t afford to pay their mortgages. Luckily I was not one of those people. However, with Republicans in office, they will continue to help the big business who put us in this mess and in the first place and punish those of us individuals out there trying to make a better life for ourselves.
What will happen to the people who do not show they have income by paying taxes or people on Social security… what will happen with those people?
This plan, as most others have said will only put money in the pockets of those who will spend it on crap made in another country. Whose economy do you think this will help? It surely won't be ours in the USA.
Thanks a lot for the second rebate check that I won't be getting!
From Jenn, Racine,WI Just because we do not make large salaries does not mean we are not as productive as you. We did not do this so do not knock us.
From Ben Johnson, San Diego, CA The stimulus package is clearly not going to "jump start" an economy that is in the tank because of the housing bubble burst (and is taking a lot of greedy banks along with it). I don't think anyone is going to go out and buy a house with the rebate.
So, people are saying this will work because it has a psychological boost on to moral of the consumer. I never learned about that in my Economics classes. Anyway, if you want to give me a psychological boost, how about you just pay off the federal debt by $1.5 trillion. That would make me feel like America was getting back on a solid financial foundation again. But the government isn't going to do that because then they would have to pay for the stimulus plan with real dollars.
From Kevin, Elmhurst IL. I find it amusing that the rebates will not be sent to families making in excess of $175K annually. So let me get this straight, we pay more in taxes for earning a higher income, but the lower tax paying citizens are the ones who will receive the rebate. Let's just cut to the chase, the politicians and economic "experts" know that the middle/lower class is much more likely to dump the money right back into the economy on clothes, electronics, etc (which is what they want to happen)…heck, or even pay off their high credit cards (what a noble idea)than the higher income who would most likely sock it away in the bank or buy bonds, etc….or even stocks (listening corporate America).
It's a joke, it will register as a minor, short blip on the radar. What they're doing with mortgages and raising the conforming rates are one real solution for fixing what's wrong.
Most of this could have been avoided if the greedy people in the mortgage industry (who have now probably moved on to the next shell game) hadn't passed out loans where they knew they shouldn't so they could make a buck.
I still love this country. :o)
From Sharon, Green Valley AZ Love all the comments so far and couldn't agree with them more. Great to see that there are still US citizens discussing our problems, like financially responsible adults. This is just a 'feel good' package and that is not going to solve our debt and economic problems and boost our economy. We need to make the tough decisions that are not necessarily 'feel good' situations. This 'stimulus' package is like throwing a pebble into a tanker and saying it is fully loaded and ready to go. In other words, a MAJOR joke, and a big waste of money!
From Michael long,Quitman,Tx The stimuluis package is something needed in my opion but nothing has been said for those on social security or ss/disability. we to need those dollars,we have debt too!!!
From Jake31, Seattle, WA What nonsense to think that handing out a few hundred dollars to people is magically going to boost the economy out of its disastrous plunge. If they're serious about solving our economic woes, they could start with plugging the financial hemorrhage that is this so-called war in Iraq.
I have never such incompetent stewardship of our nation in any past presidential administration. To be fair though, the moron in the White House and his cronies in the administration are not alone in their incompetence. Most of our elected officials ought to be replaced, but this time with qualified people who actually have knowledge and experience relevant to their responsibilities. Then the prosecution of the criminals now running things can begin.
From Nathan, Coral Springs, FL I think that a stimulus package is a good idea but the mounting national debt that this country is effecting what that money is worth. If we, instead, pay off 150 billion or even 75 billion then the value of the dollar is worth more and that could effect the economy even more.
From Dean, Greensboro NC I would have to agree that the general "public" which will fall into the "parameters" set by the Feds are those who currenly are not contributing to the progressive welfare of this nation. There will be more Cell phones, baggy pants and car shakiing sound systems purchased for sure. Most of which are not manufactured in this U S of A.
From Brian, BC, KS I agree with you Henry. With 70% of Wal-Marts goods made in China and consumers will more likely buy goods from Wal-Mart with their rebate, all this money will simply flow to China, add to our debt that China will end up buying. China must be celebrating this decision.
From James, Stamford CT Great. Instead of taking that money and starting federal projects to keep the country working, the gov't wants to dilute the dollar by sinking the country even more into debt (the rebates are not coming from thin air) and putting more cash into circulation.
Well done.
From gene seitz Richmond, VA Hey Congress, how about a plan that the rebate must be used on "Made in America" products only. Or else we are just wasting more money.
J Henry Warren, Philadelphia, PA , said it all. The low/middle class that this rebate is aimed at is Walmarts target customers, and that is where most of it will go.
Or how about this to stimulate the economy..bring home our 160,000 shoppers. I'll bet they prefer to buy American.
From David, Dallas TX Congress always seems to enjoy rewarding failure and punishing success. The decision to limit tax rebates to low-income households is just one more assault by Congress upon our country's more productive citizens.
From J Henry Warren, Philadelphia, PA Congress might as well send one check for $150 billion to China and then write another 10% commission check to Walmart…and save all the postage to mail out those "rebate" checks…, because this is where the USA borrowed funds will immediately end up. We're not going to see any 10 times roll over effect of these dollars in our econmomy……….Hey, or we could just sign another promisory note to China as save all the trouble.
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You got to be kidding me how is this going to help the average person? Increase unemployment increase food stamps tax breaks to buy a house. Show me where the job creation is there. This is pork laden bill that is a spending spree of money we don't have. The cost of this to the future is going to be horrible! You want to see stimulus give every tax payer 25,000 dollars and lets talk then. Your first didn't work cause it was to small. Give the money to the working class not the ceo's and big business.