On Friday, President Bush revealed an economic plan that focused a great deal on tax rebates and incentives. One of the readers of my various blogs asked this question about the tax rebates:
Is the tax rebate going to be for everyone or just certain income
brackets? Also, would it be the same amount for everyone that gets it
or do we know this information yet?
This is a good question. And, with most questions touching upon personal finance and politics, the answer isn’t always so straightforward. The Bush economic plan has to be approved by Congress. His package has to be passed first, and Congress may change things about it. So, in a way, the information isn’t known yet.
One of the earlier ideas was to offer a $500 tax rebate to every American. But that idea has since been scrapped. Now, only some who “qualify” (and those details need to be worked out) will get tax rebates. The last time tax rebates came on a large scale, a combination of need and taxes paid was used. It is likely that a similar standard will be used again.
Additionally, not everyone will get the same amount. Again, some formula would be worked out that considers need, taxes paid, marital status, etc. to determine how much each “qualified” person would get.
So hang tight. Details are forthcoming as soon as Congress figures out how it feels about the Bush economic plan, and there is still plenty of partisan wrangling — on both sides of the aisle — to come before any tax rebates come through.