The $789 billion U.S. economic stimulus package, which was signed
into law February 17th by President Barack Obama, contains numerous tax
provisions including $282 billion in tax cuts. Several of the major tax
provisions incorporated in the final bill include:
- MAKING
WORK PAY TAX CREDIT: Creates a "Making Work Pay" tax credit of $400 or
6.2% of earned income (whichever is less) per individual and $800 for a
couple in 2009 and 2010. It is phased out for individuals with adjusted
incomes over $75,000 and couples with incomes over $150,000.
- ONE-TIME PAYMENT
FOR SS BENEFICIARIES:
Provides a one-time payment of $250 to Social Security beneficiaries. This
is in addition to the Making Work Pay Tax Credit, and there is no tax
return filing requirement to access this benefit. Beneficiaries will
receive an electronic payment within 120 days of the Secretary of Treasury
initiating the benefit. Payment will NOT count as a resource or
income for SSI .
- EARNED INCOME
TAX CREDIT INCREASE:
Increases the earned income tax credit for low-income workers with three
or more children.
- EXPANSION OF
CHILD TAX CREDIT:
Expands eligibility for the $1000 refundable child tax credit to more
low-income workers families that don’t make enough money to pay income
taxes, reducing the income floor to $3,000 in 2009 and 2010 from the
current floor of $8,500.
Additionally, the stimulus package included several additional
forms of assistance beyond tax relief, including the following provisions[ii]:
- EDUCATION
EMERGENCY REPAIR & INFRASTRUCTURE GRANTS
- Criterion
includes consideration of whether or not current infrastructure is
inaccessible to people with disabilities.
- Criterion
includes consideration of whether or not current infrastructure is
inaccessible to people with disabilities.
- HEALTH
INSURANCE:
- $87 billion to
support state Medicaid programs.
- $87 billion to
support state Medicaid programs.
- HUD PROVISIONS
- Gives the
Secretary of Housing & Urban Development broad authority to waive
legal requirements in the administration of housing programs under the
Act, but prohibits the Secretary from waiving requirements related to
fair housing, non-discrimination, labor standards, and the environment.
- Ensures that
recipients of HUD assistance via the economic stimulus package must honor
Section 8 leases and cannot refuse to rent to Section 8 subpopulations.
- Gives the
Secretary of Housing & Urban Development broad authority to waive
legal requirements in the administration of housing programs under the
Act, but prohibits the Secretary from waiving requirements related to
fair housing, non-discrimination, labor standards, and the environment.
- SPECIAL
EDUCATION:
-
- $11.3 billion
reserved for Section 611 of the IDEA
- $400 million
reserved for Section 619 of the IDEA
- $500 million
reserved for Part C of the IDEA
- $11.3 billion
reserved for Section 611 of the IDEA
- $12.2 billion,
of which
-
- UNEMPLOYMENT
ASSISTANCE:
- Individuals
shall not be disqualified from regular unemployment compensation for
separating from employment if that separation is for any compelling
family reason, including the illness or disability of a member of the
individuals immediate family (as defined by the Secretary of Labor)
- Those receiving
unemployment benefits this year will not have to pay federal income taxes
on the first $2400 they receive.
- Individuals
shall not be disqualified from regular unemployment compensation for
separating from employment if that separation is for any compelling
family reason, including the illness or disability of a member of the
individuals immediate family (as defined by the Secretary of Labor)
- VOCATIONAL
REHABILITATION
- $680 million
- $680 million
-
-
- $540
million for part B of Title I of the Rehabilitation Act
- $140 million
for parts Band C of Chapter 1 & 2 of Title VII of the Rehab act
- $18.2 for
state grants
- $87.5 for
independent living centers
- $34.3
for services for older blind individuals
- $18.2 for
state grants
- $540
million for part B of Title I of the Rehabilitation Act
-
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