Federal Tax Watch
Congress passes economic stimulus package
Responding to a challenge from President Bush issued on Jan. 18, Congress passed the Economic Stimulus Act of 2008 on Feb. 7. The president signed the new law on Feb. 13, less than one month after his original proposal.
In calling on Congress to enact a stimulus package, the President set forth four goals:
The stimulus should be big enough to make a difference in an economy as large and dynamic as the U.S. economy.
The package should provide broad-based tax relief that will directly affect economic growth, rather than increased federal spending.
The relief should be temporary and take effect immediately.
The package should not include tax increases.
Congress responded with a two-part stimulus package that includes tax rebate checks for individuals and enhanced depreciation write-offs for businesses.
(Special Spring)
Few changes made to federal tax laws in 2007
The Small Business and Work Opportunity Tax Act of 2007 is the only significant new tax law enacted during 2007 as of early November. The act was designed to assist small businesses in absorbing the cost of a higher federal minimum wage that will reach $7.25/hour over the next two years. However, this will result in additional taxes for certain taxpayers.
(Winter 2008)
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