Do you expect economy to recover fast? Well, read the recent press release below and make up your mind:
The two bills, which make up the American Recovery and Reinvestment bill, will be reviewed and amended starting next week as they work their way through the House and Senate.
"The critical state of our economy calls for swift, comprehensive action and this package will provide relief to all communities and all sectors of the American economy," said Ways and Means Chairman Charles Rangel, D-N.Y.
Roughly $145 billion of the tax bill would be allocated for a tax cut for low- and middle-income workers.
The Make Work Pay Credit, which was a centerpiece of President-elect Barack Obama's campaign, would be worth $500 a year for individuals and $1,000 for couples.
The full credit would be available for 2009 and 2010 but is limited to those making $75,000 or less ($150,000 or less for workers filing joint returns).
The credit could be paid to workers in one of two ways: through their paychecks or through their federal tax return.
The Make Work Pay Credit also would be refundable, meaning that even tax filers without any tax liability -- typically very low-income workers -- would receive one.
Other breaks in the bill that would benefit individuals are an expansion of the Earned Income Tax Credit, which is a refundable credit for low-income workers, and an increase in the refundable portion of the child tax credit.
The bill would also remove the requirement that first-time home buyers repay a new credit worth up to $7,500 that they may claim on their federal tax return for buying a home between Jan. 2, 2009, and July 1, 2009.
