This document,1 prepared by the staff of the joint committee on taxation, provides a description of the economic stimulus act of 2008. A federal law that attempted to avoid or mitigate an economic recession. A primer on fiscal stimulus, douglas elmendorf and jason. The irs will be sending you a letter later this year listing the amount you received. Yields on longterm securities fell in the second half of 2007 and continued to trend down in early 2008. Also in 2008 and 2009, the government intervened in specific financial. Congressional budget office cost estimate february 6, 2008 economic stimulus act of 2008 as ordered reported by the senate committee on finance on january 30, 2008 summary the economic stimulus act of 2008 would provide rebates to individuals who satisfy certain. All regional directors food stamp program as you know, the economic stimulus act provides for rebates to many low and middleincome households. The economic stimulus act of 2008 summary and explanation l economic stimulus rebate checks l temporary increases in expensing of depreciable assets l special depreciation allowance for certain property the house and senate on february 7, 2008 passed the economic stimulus act of 2008. Meaning of economic stimulus act of 2008 as a finance term. In addition, we evaluated the controls in place to ensure economic stimulus payments were not issued after december 31, 2008, as mandated by the economic stimulus act of 2008. Chamber of commerce provided essential support for passage of the economic. Substantial, speedy, and sustained despite the fiscal stimulus and further interest rate cuts, the economic and financial.
Tax burden and distribution of stimulus payments 2008. Joint committee on taxation, description of the economic stimulus act of 2008 jcx808, january 28, 2008. Even though this credit is a 2008 tax credit, starting in may 2008, rebate checks will be issued based on 2007 tax return data. President barack obama outlined the economic stimulus package during his 2008 campaign. Congress approved the american recovery and reinvestment act arra in february 2009.
The act amends the economic stimulus act of 2008 so that thousands of military personnel will receive an economic stimulus payment regardless of whether they, their spouses, or their children have valid social security numbers. On february, 2008, president bush signed into law the the economic stimulus act of 2008 the act. Protesters at vilsack announcement in ames 021 5954727792. Signed on february, 2008, the economic stimulus act of 2008 was passed to energize the national economy.
Definition of economic stimulus act of 2008 in the financial dictionary by free online english dictionary and encyclopedia. They designed the act to counteract a short recession by providing temporary support to consumer spending, but it was not sufficient to reverse the emerging distress and, by design, did not have longlasting effects. Economic stimulus act of 2008 frequently asked questions q. This policy memorandum contains guidance to state agencies regarding the economic stimulus act of 2008 that provides rebates to many low and middleincome households. People who filed tax returns for either 2007 or 2008 could qualify for recovery rebates. But so long as we pursue progrowth policies that put our faith in the american people, our economy will prosper and it will continue to be the marvel of the world. The schedule for receiving payments depends on individual social security numbers, and how and when people filed. Yet the genius of our system is that it can absorb such shocks and emerge even stronger. The economic stimulus act of 2008 bucks county lawyer. The impact of the 2008 tax rebates on consumer spending. The act provides several kinds of stimulus intended to boost the us economy in 2008 and to avoid or lessen an economic recession. The economic stimulus act of 2008 was proposed and debated in the final months of 2007 before being signed into law by president bush in february 2008. No, you will not owe tax on your payment when you file your 2008 federal income tax return.
The act provides tax rebates for low and middleincome us taxpayers, and tax incentives to stimulate business investment. Part iii administrative, procedural, and miscellaneous. What does economic stimulus act of 2008 mean in finance. Is a taxpayer that claimed bonus depreciation or enhanced section 179 expense under the federal economic stimulus act of 2008 required to modify its nebraska income to add back a portion of. The goal of the package was to stimulate consumer spending and encourage businesses to expand, hopefully creating more jobs and further jumpstarting the economy. Economic stimulus act of 2008 wex us law lii legal. Description of the economic stimulus act of 2008 by the joint committee on taxation jcx808, january 28 2008. The act is intended to help mitigate or forestall the recession. The 2008 stimulus package increased the deficit by about 1% of. Economic stimulus act of 2008 as cleared by the congress on february 7, 2008 summary h. Vermont act 190 of 2008 prevents the bonus depreciation allowed under the federal economic stimulus act of 2008 from flowing through to the vermont individual income tax return. In the senate of the united states, february 7 legislative day, february 6, 2008. This notice informs certain individuals not otherwise required to file an income tax return how to request the economic stimulus payment authorized by h. Responding to the global financial crisis what we did and why.
President signs public law 110185, the economic stimulus. Early in the recession, the economic stimulus act of 2008 enacted on february, 2008, included onetime recovery rebates to individuals. Economic stimulus act of 2008 congressional budget. The 2006 housing market slowdown had affected the economy. Page 65, discussion of transfer receipts associated with the american recovery and reinvestment act arra january 2010 survey pdf page 5051, discussion of impact with statelevel tables. As part of our ongoing assessment of irss tax filing season performance, requested by this subcommittee and others, we have been monitoring irss implementation of the economic stimulus legislation. The act was a response to weakness in the economy and prospects for more substantial. Tax credits for individuals people who filed tax returns for either 2007 or 2008 could qualify for recovery rebates.
President signs public law 110185, the economic stimulus act of 2008 on february, 2008, president bush signed into law h. The economy is expected to remain weak through the first half of 2008 but improve in the second half when measures enacted under the economic stimulus act of 2008 take effect. In september 2007, libor rates began rising above the fed funds rate. The economic stimulus act of 2008 contains two provisions that provide tax benefits for businesses. Small business financing the effects of a decelerating housing market and increasing energy prices were felt to some extent in the financial markets of 2007. Media in category economic stimulus act of 2008 the following 3 files are in this category, out of 3 total. The economic stimulus act of 2008 had three main parts. This technical bulletin provides guidance for individual income taxpayers who must adjust their business income to exclude the bonus depreciation. The economic stimulus act of 2008 physical therapy. Congressional budget office cost estimate economic stimulus. The american recovery and reinvestment act of 2009 arra, p.
Chamber members tom sawner far left and darlene miller far right discuss the benefits of the economic stimulus bill with president bush. By following the steps and guidance in this publication, these individuals or volunteers assisting them can determine if they are eligible for an economic stimulus payment. Filing instructions for certain individuals not otherwise required to file an income tax return. The economic stimulus act of 2008 will provide million u. To prevent runs on banks and other financial institutions, the treasury department established a temporary guarantee program for money market. Recovery rebates and incentives for business investment sec.
The act was signed by president bush on february, 2008. President bush on wednesday said, over the past seven years, this system has absorbed shocks recession, corporate scandals, terrorist attacks, global war. None of these descriptions were specific enough to fully describe a. As congress knows, the recent passage of this legislation created additional, unanticipated workload for irs and required irs to act quickly to deal with the publics questions and begin issuing payments. The act was written by lawmakers to stimulate the current shaky economy. October 6, 2008 federal economic stimulus act of 2008 bonus depreciation and enhanced section 179 expense deductions for nebraska income tax purposes issue. Now im honored to sign the economic stimulus act of 2008. The economic stimulus act of 2008 was an act of congress providing for several kinds of. Economic stimulus act of 2008 jcx808, january 28, 2008. Recovery rebates and economic stimulus for the american people act of 2008. Resolved, that the bill from the house of representatives h.
Take responsibility for workers and families act house. Joint committee on taxation, technical explanation of the revenue provisions of h. These individuals are not otherwise required to file federal tax return, but must file a return to receive the economic stimulus payment. The house and senate on february 7, 2008 passed the economic stimulus act of 2008. We advise you to take any letters you receive regarding this bill and payment notifications skeptically. Economic stimulus act of 2008 oklahoma public employees. Economic stimulus act of 2008 financial definition of. Economic stimulus act of 2008 a federal law that attempted to avoid or mitigate an economic recession. November 2009 survey pdf page 70, discussion of impact with table. So if you have taxable income in 2008, you will see a tax cut when you file in 2009. The act provides tax rebates for low and middleincome us taxpayers, and. Aug 08, 2008 the bipartisan economic stimulus package was a straightforward application of keynesian fiscal policy.
Bush signed the economic stimulus act of 2008 on february, 2008. Economic stimulus act of 2008 on the internal revenue services irs telephone service and costs. The economic impact of the american recovery and reinvestment act five years later 95 year, lowered the rate still further in december 2008 to near zero, where it remains to this day. In the event that you did not qualify for the full amount this year, but. You must file a federal tax return for 2007 to be eligible for the stimulus payment. The purpose of this testimony is to provide information on the effects of the economic stimulus act of 2008 on the internal revenue services irs telephone service and costs. The first provision increases the limit up to which a business can expense property purchased and placed in service during its 2008 tax year.
Aassessing the macro ssessing the macro eeconomic impact of. Public law 110 185 economic stimulus act of 2008 content. The economic stimulus package ended the great recession by. The economic stimulus act of 2008 was signed into law on february, 2008. In a dynamic market economy, there will always be times when we experience uncertainties and fluctuations.
House of representatives on january 29, 2008, and in a slightly different. Also, lowincome workers were required to file a return to receive the payment, even if they. Crs insight in11255, covid19 and stimulus payments to individuals. The mix of discretionary stimulus to individuals in the great recession and subsequent research on the effects has provided several lessons on the best ways to structure stimulus payments. Report to congress on international economic and exchange. The act includes a refundable recovery rebate credit for 2008.
T he house passed the bill on january 29 th, by a vote of 385 to 35. Business provisions of the economic stimulus act of 2008. The bipartisan economic stimulus package was a straightforward application of keynesian fiscal policy. Economic stimulus act of 2008 the economic stimulus act of 2008 had three main parts. With economists and economic indicators forecasting a recession for 2008, and in the midst of the subprime lending crisis, the economic stimulus act of 2008, p. The act is intended to stimulate consumer spending in 2008, and features taxpayer rebate checks for more than million individuals, as well as increased small business expense and depreciation limits, and increased loan limits for fannie mae, freddie mac. Mar 18, 2020 the economic stimulus package of 2008 was an ambitious bill passed by the united states congress in an attempt to address the faltering american economy. Along with the rebate checks, the bill contains some. Reserve, and fiscal policy, including a tax cut in february 2008 of. As the economy slid into recession, congress and the bush administration enacted the economic stimulus act of 2008 in february. Washington cnn president bush on wednesday signed the economic stimulus act of 2008, calling it a booster shot for the american economy.