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Washington – Show Me the Money!

Barack Obama is moving quickly as he begins his work in the Oval Office.  First on his agenda is the task of gathering support for his economic stimulus plan.  On January 24, 2009, The New York Times laid out some of the details of the $825 billion spending plan that Obama seeks to push through Capitol Hill by mid February.  The plan includes components targeting help for college students, planning to cover health care for uninsured Americans, creating new jobs by improving infrastructure and spending for new energy.

One interesting element of the American Recovery and Reinvestment Tax Bill of 2009 is the Making Work Pay Tax Credit.  Workers could be eligible for a $500 tax credit ($1,000 for joint filers).  The hope is to have money in the taxpayer’s pockets by June, not by sending out checks like last year, but by reducing withholding tax on employee’s paychecks.  This credit would phase out for taxpayers with adjusted gross income above $75,000 ($150,000 for married filing joint).  I am guessing that taxpayers will be happy to hear that they could benefit from some of the money that is being handed out from Washington.  Just a little pay back after watching all our money go to help Wall Street and banks across the nation.  The Emergency Economic Stabilization Act of 2008 which passed in October 2008 included TARP (Troubled Assets Relief Program) which allowed the Treasury to purchase troubled assets from financial institutions.  Many of you have been a little disgruntled with this “bailout” of Wall Street and so maybe you feel like the guy in this video clip with his song “I Want some TARP.”

I hope you have a good laugh.