The 2008 stimulus package increased the deficit by about 1% of. A federal law that attempted to avoid or mitigate an economic recession. Tax credits for individuals people who filed tax returns for either 2007 or 2008 could qualify for recovery rebates. With the worsening performance of the economy beginning in september 2008, congress passed and president obama signed a much larger stimulus package.
The credit is computed with two components in the following manner. Economic stimulus act of 2008 how is economic stimulus act of 2008 abbreviated. Economic stimulus act of 2008 how is economic stimulus act. In the senate of the united states, february 7 legislative day, february 6, 2008. Joint committee on taxation, technical explanation of the revenue provisions of h.
The provision includes a stimulus rebate credit for 2008. Economic stimulus act of 2008 the economic stimulus act of 2008 had three main parts. The economic stimulus act esa of 2008 was passed in early that with just such a purpose. The economic stimulus act of 2008 will provide million u. Reserve, and fiscal policy, including a tax cut in february 2008 of. Crs insight in11255, covid19 and stimulus payments to individuals.
Treasury is needlessly requiring millions of veterans. The purpose of this testimony is to provide information on the effects of the economic stimulus act of 2008 on the internal revenue services irs telephone service and costs. Starting in may, the treasury will begin sending economic stimulus payments to more than million individuals. The economic stimulus package of 2008 was an ambitious bill passed by the united states congress in an attempt to address the faltering american economy. Aassessing the macro ssessing the macro eeconomic impact. Economic stimulus act of 2008 how is economic stimulus. In short, with the economic stimulus act of 2008, policymakers tried to increase disposable income temporarily through tax rebates in the hopes that households would increase or maintain their spending levels and so end or at least mitigate the severity of a u. These economic stimulus payments esps, as they came to be known, were disbursed. Small business expensing alabama income tax law was decoupled from the provisions of the federal economic stimulus act of 2008.
By following the steps and guidance in this publication, these individuals or volunteers assisting them can determine if they are eligible for an economic stimulus payment. House of representatives on january 29, 2008, and in a slightly different. Cost estimate for the bill as ordered reported by the senate committee on finance on january 30, 2008. Bush signed the economic stimulus act of 2008 on february, 2008. Media in category economic stimulus act of 2008 the following 3 files are in this category, out of 3 total. Evaluation of the computation of economic stimulus payments. What does economic stimulus act of 2008 mean in finance. Technical bulletin 44, disallowance of bonus depreciation provisions of federal economic stimulus act of 2008. The 2006 housing market slowdown had affected the economy. The bipartisan economic stimulus package was a straightforward application of keynesian fiscal policy. Bush signed into law the economic stimulus act of 2008, which provides for economic stimulus payments to be made to over million american. Its almost like getting some of the equipment for free. The economic stimulus act of 2008 had three main parts.
So if you have taxable income in 2008, you will see a tax cut when you file in 2009. The act is intended to help mitigate or forestall the recession. People who filed tax returns for either 2007 or 2008 could qualify for recovery rebates. These individuals are not otherwise required to file federal tax return, but must file a return to receive the economic stimulus. With economists and economic indicators forecasting a recession for 2008, and in the midst of the subprime lending crisis, the economic stimulus act of 2008, p. The act was a response to weakness in the economy and prospects for more. The credit mechanism and the issuance of checks described below is intended to deliver an expedited fiscal stimulus to the economy. As you can see, the financial benefit of the new legislation can be immense. Economic stimulus act of 2008 congressional budget office. For the vast majority of taxpayers, the only thing you must do is file a 2007 income tax return in order to qualify for your stimulus payment. Bipartisan growth package will help protect our nations economic health. These stimulus payments will continue to be disbursed through late spring and summer.
The goal of the package was to stimulate consumer spending and encourage businesses to expand, hopefully creating more jobs and further jumpstarting the economy. Yet the genius of our system is that it can absorb such shocks and emerge even stronger. Economic stimulus act of 2008 wikisource, the free. The impact of the 2008 tax rebates on consumer spending. Aassessing the macro ssessing the macro eeconomic impact of. President bush on wednesday said, over the past seven years, this system has absorbed shocks recession, corporate scandals, terrorist attacks, global war. Im pleased to be joined by leaders of both parties to enact an economic. Economic stimulus act of 2008 congressional budget. We advise you to take any letters you receive regarding this bill and payment notifications skeptically. Economic stimulus act of 2008 wex us law lii legal. Supporters of the legislation believed that it would bolster the. The act was signed by president bush on february, 2008.
Aug 08, 2008 the bipartisan economic stimulus package was a straightforward application of keynesian fiscal policy. Signed on february, 2008, the economic stimulus act of 2008 was passed to energize the national economy. Notice 77 february 2008 catalog number 51255b dear taxpayer. Economic stimulus payment internal revenue service. Economic stimulus act of 2008 oklahoma public employees. The act was a response to weakness in the economy and prospects for more substantial deterioration in spending and in the labor. Technical explanation of the revenue provisions of h. Title irecovery rebates and incentives for business investment sec. In september 2007, libor rates began rising above the fed funds rate. Economic stimulus act of 2008 financial definition of. A for the first taxable year beginning in 2008 an amount equal. The economic stimulus act of 2008 bucks county lawyer. Apr 26, 2020 the economic stimulus package of 2008 was an ambitious bill passed by the united states congress in an attempt to address the faltering american economy.
Along with the rebate checks, the bill contains some. As congress knows, the recent passage of this legislation created additional, unanticipated workload for irs and required irs to act quickly to deal with the publics questions and begin issuing payments. Meaning of economic stimulus act of 2008 as a finance term. The economic stimulus act of 2008 summary and explanation l economic stimulus rebate checks l temporary increases in expensing of depreciable assets l special depreciation allowance for certain property the house and senate on february 7, 2008 passed the economic stimulus act of 2008. Direct spending and revenues effects estimate for the bill as cleared by the congress on february 7, 2008. Economic stimulus act of 2008 financial dictionary. These economic stimulus payments esps, as they came to. The act provides several kinds of stimulus intended to boost the us economy in 2008 and to avoid or lessen an economic recession. These individuals are not otherwise required to file federal tax return, but must file a return to receive the economic stimulus payment. In 2008, the treasury asked congress to include language that required roughly 20 million seniors, veterans and people with disabilities to file tax returns to get their stimulus payments even. The act provides tax rebates for low and middleincome us taxpayers, and tax incentives to stimulate business investment. Recovery rebates and incentives for business investment sec.
Aassessing the macro ssessing the macro eeconomic impact of conomic impact of ffiscal stimulus 2008iscal stimulus 2008 bbyy mmark m. You must file a federal tax return for 2007 to be eligible for the stimulus payment. Resolved, that the bill from the house of representatives h. To provide economic stimulus through recovery rebates to individuals, incentives.
The economic stimulus act of 2008 was signed into law on february, 2008. Joint committee on taxation, description of the economic stimulus act of 2008 jcx808, january 28, 2008. This document,1 prepared by the staff of the joint committee on taxation, provides a description of the economic stimulus act of 2008. The most significant part of the act is the economic stimulus payment to individuals. Along with the rebate checks, the bill contains some business incentives. Tax rebates for individuals the rebate proposal has two components. Definition of economic stimulus act of 2008 in the financial dictionary by free online english dictionary and encyclopedia. The added stimulus to the economy came mostly from falling taxes and rising transfer payments due to the economic stimulus act of 2008 and the american recovery and reinvestment act of 2009. Are they the same th8ings as the things we file every year, if no then how do i file for economic stimulus act of 2008. The act is intended to stimulate consumer spending in 2008, and features taxpayer rebate checks for more than million individuals, as well as increased small business expense and depreciation limits, and increased loan limits for fannie mae, freddie mac. Public law 110 185 economic stimulus act of 2008 content.
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