Making Work Pay Tax Credit in Obama’s Stimulus Package
Since the American Recovery and Reinvestment Act of 2009 was passed into law on February 17, 2009, much speculation has risen about whether or not the 2009 stimulus package will work on recovering the US economy. Since Barack Obama began putting together plans to stimulate the economy and create more jobs, critics have been taking sides. Those that have not shown support have been calling his stimulus package a Spendulus Package or have been joking about how much $13 a week would really help struggling Americans.
Where did the talk about $13 a week come from? The recent new American Recovery and Reinvestment Act of 2009, that was signed into law, includes new tax provisions. The “Making Work Pay Tax Credit” of this new bill will provide a refundable tax credit of up to $400 for working individuals and $800 for married taxpayers filing joint returns. Starting no later than April 1, 2009 you should begin to see a credit of $13 a week in your paycheck. This will last until 2010 when it will be changed to $8 a week until the $400 is reached.
Will this “Making Work Pay Tax Credit” really help stimulate the economy. Many people have been mocking the bill saying ‘What is someone going to do with an extra $13 a week?’ There is much speculation that this will have very little stimulation on the economy and that it will take too long to make a difference in the job market.
The Making Work Pay tax credit is only part of the American Recovery and Reinvestment Act of 2009. Other tax provisions such as the Refundable First-time Home Buyer Credit, Money Back for New Vehicle Purchases and the Economic Recovery Payment are all part of the new bill.
For More Details on the American Recovery and Reinvestment Act of 2009:
Recovery.gov
Tax Provisions
First-Time Home Buyer Tax Credit
February 25th, 2009 at 9:20 am
I don’t know if you watched his speech last night but it was very interesting. Not sure if this stimulus is necessarily going to help but I guess its better than doing nothing.
At the end of the day, the economy is stronger than the government.
March 9th, 2009 at 3:37 pm
[...] about buying their first home but have been hesitant due to the current state of the economy, the American Recovery and Reinvestment Act of 2009 has provided a great incentive to do so. Under the new tax provisions recently signed into law, a [...]