Stimulus Bill

[LCP]

Anybody seen a good summary of the tax provisions?

I couldn't find one but in my reading I did get the impression that the college tax credit provision is an increase to $2500 rather than something new.

[Larmil]

Anybody seen a good summary of the tax provisions?

I couldn't find one but in my reading I did get the impression that the college tax credit provision is an increase to $2500 rather than something new.

You might monitor http://www.govtrack.us/congress/bill.xpd?bill=h111-1. They should be one of the first to have a summary of the "differences resolved".

[JohnH]

Why bother trying to find out about it ? - the people voting on it don't plan to do so.

http://cnsnews.com/public/content/article.aspx?RsrcID=43478

U.S. Rep. Emanuel Cleaver said: “Regardless of party, we all cast our votes with one hand and crossed our fingers with the other". He didn't elaborate on whether crossing the fingers was just a bit of wishful thinking that everything will turn out OK or the old playground trick of covering up a lie. Either way, it's a juvenile way for public officials to conduct themselves.

This is how our nation's business is being conducted during what they describe as the most critical period since the Great Depression. And what's the rush? Nothing more than the symbolic effort to get the bill ready to sign on President's Day, and also so Nancy Pelosi can leave on time to make her trip to Rome (probably paid for with our tax dollars).

They also broke their promise to give taxpayers 48 hours to study legislation before it's voted on. I can't help but wonder what may yet be found in there that they have to get it done under such stealthy conditions. It's clear that these "leaders" view the American people in the same manner as one of WC Fields' characters when he uttered those memorable words, "Never give a sucker an even break or smarten up a chump."

[LCP]

Well Slimeulus was finalized days ago and I stil haven't been able to determine whether the Opportunitity tax credit is in addition to or replaces the Hope or any other.

Do you think anyone in this country knows for sure?

[KBTS]

According to the CCH Update, the Opportunity Credit enhances the Hope credit for 2009-2010. The amount will be a maximum of $2,500 and extend to all four years of college. Also 40% of the credit is refundable. The credit is figured on 100% of the first $2,000 in expenses and 25% of the next $2,000.

Now whether anyone in Congress who voted for this knows what they just passed is a whole different subject.

[Gene V]

CCH briefing:

http://tax.cchgroup.com/Legislation/House-Senate-Recovery-Act-2009.pdf

[RLymanC]

Summary of tax act

Got this through the IRS WEB site

http://finance.senate.gov/press/Bpress/2009press/prb021209.pdf

[LCP]

Got this through the IRS WEB site

http://finance.senate.gov/press/Bpre.../prb021209.pdf

...and it's referred to as a "new tax credit" there without any mention of the Hope Credit.

[JohnH]

So I hadn't seen any more publicity about the Rome trip being a big reason the stimulus bill had to be rushed through, so I just assumed my information was wrong. Then today this story pops up and sure enough, there's Nancy Pelosi in Rome, with her delegation, at the US taxpayers' expense, getting ready for an audience with the Pope. I guess she's planning to impress His Holiness with her peculiar interpretation of Catholic Theology & maybe set him straight on a few gaps in his understanding. http://www.catholicnewsagency.com/new.php?n=15098

Then about 2/3 of the way down the article they have to remind us once again that this woman is 3rd in line in Presidential succession (followed of course by Robert Byrd & Hillary Clinton) . All I can say to the Pope is, whatever blessings you bestow or however you feel inclined to pray for her, PLEASE include a special prayer for the well-being of Barack Obama and Joe Biden.

[JCH]

Forum Moderator

So I hadn't seen any more publicity about the Rome trip being a big reason the stimulus bill had to be rushed through, so I just assumed my information was wrong. Then today this story pops up and sure enough, there's Nancy Pelosi in Rome, with her delegation, at the US taxpayers' expense, getting ready for an audience with the Pope. I guess she's planning to impress His Holiness with her peculiar interpretation of Catholic Theology & maybe set him straight on a few gaps in his understanding. http://www.catholicnewsagency.com/new.php?n=15098

Then about 2/3 of the way down the article they have to remind us once again that this woman is 3rd in line in Presidential succession (followed of course by Robert Byrd & Hillary Clinton) . All I can say to the Pope is, whatever blessings you bestow or however you feel inclined to pray for her, PLEASE include a special prayer for the well-being of Barack Obama and Joe Biden.

Your posts are largely about your right wing political views -- which are tedious at best -- and have very little to do with tax policy. Now you're introducing your religious views, which we're not interested in either.

I thought this board was moderated by someone.

[superman]

Housing Credit

So under this provision does this mean that the clients that qualify for this credit now get this money for free and never has to pay it back? I should have told more people to buy a house so we could all give them money as taxpayers!!! They should have wrote something in for people that have gotten their houses foreclosed on to get goverment money being that it was our fault that they over extended themselves.

Subtitle D - Housing Incentives
Section 1301 -
Waives the repayment requirement of the first-time homebuyer tax credit for purchases of a principal residence after December 31, 2008, and before July 1, 2009.

[Larmil]

Your posts are largely about your right wing political views -- which are tedious at best -- and have very little to do with tax policy. Now you're introducing your religious views, which we're not interested in either.

I thought this board was moderated by someone.

The moderators are tax professionals and this their busiest time of year, but I trust they are watching . I agree with you about the discussion of religion. I do not agree with you that politics have nothing to do with tax policy. IMHO, politicians have EVERYTHING to do with tax policy. We deal with the IRS which enforces the tax policy (your term). The politicians write the tax policy.

[JohnH]

Sorry, I expected most readers on this forum to be sophisticated enough to see the humor. Guess I need to put those little smiley faces at the end for some folks.

[Larmil]

Sorry, I expected most readers on this forum to be sophisticated enough to see the humor. Guess I need to put those little smiley faces at the end for some folks.

Or change your 'tag line' to "Standing at the intersection of Queens Road and Queens Road."

[JohnH]

Here's an alternate view on the issue of giving people money to buy their homes. Not suggesting this is entirely correct, but it's interesting from both an economic theory and a tax application viewpoint.

If we do nothing to help people in foreclosure or to encourage people to buy, we still essentially pay because all our home values continue to decline. The argument goes that may be cheaper to help some people out in the short run in order to bolster home prices, so they will hold value in the long run or recover faster, thereby benefitting all homeowners by stablizing their net worth.

The other side of the coin is that this artifically inflates housing prices so nobody really benefits from all this interference in the market. It also rewards bad economic behavior via the tax system and punishes responsible decision-making.

I'm not arguing for one point of view or the other, but it is an interesting question. One thing is clear - severe deflation benefits almost no one, creates terrible disruptions in the economy, and can cause a persistent death spiral that damages everyone. So it seems that there's a bias in favor of avoiding more deflation. When it becomes too much of a giveaway is anybody's guess.