January 25, 2008 - President George W. Bush yesterday announced agreement with House leaders on an economic stimulus package that will benefit businesses as well as individual taxpayers.The package includes a full tax break of $600 for individuals with less than $75,000 in income (phased out above that income level), and $1,200 for couples with less than $150,000 in income (also phased out above that income level) in 2008. The package also includes an additional $300 per child for eligible taxpayers.
To stimulate business investment, the package would allow businesses an additional deduction of 50% of the cost of new investment in equipment, software and other tangible property made in 2008. It is not clear from the fact sheet if this is accelerated depreciation or a bonus deduction, but it appears to be the latter.
Senate leaders have indicated they will have their own version of a package ready by the time the House completes their work on the bill, which could receive floor time as early as next week.
You may click on the picture to watch the news conference and here to see a fact sheet on the contents of the package as contained in the White House press package.
