In an attempt to steady the stock market in an election year, Congress revealed a plan to deliver $150 billion to businesses and consumers via an economic stimulus package yesterday. Bottom line: most individuals will get a $600 tax credit based on 2007 tax information ($1,200 joint) as well as an additional $300 per child.
Boosting Businesses & Housing
In addition, as part of the plan businesses now can write off half of their cost of capital purchases as well as deduct up to $250,000 for expenses (vs. the prior limit of $125,000). Also, in an attempt to revive a floundering housing market, the limit on government sponsored mortgages would be raised to over $600,000 from the current $417,000.