The economic stimulus act of 2008 and the american economic recovery and reinvestment act of 2009 where the latest big experiments the u. Media in category economic stimulus act of 2008 the following 3 files are in this category, out of 3 total. The act was signed by president bush on february, 2008. Economic stimulus act of 2008 congressional budget office. The economic stimulus act of 2008 was signed into law on february, 2008. Economic stimulus act of 2008 as cleared by the congress on february 7, 2008 summary h. The most significant part of the act is the individual stimulus payment, which is a credit for tax year ty 2008.
We advise you to take any letters you receive regarding this bill and payment notifications skeptically. The purpose of this act is to provide a fiscal stimulus to the slumping u. The first provision increases the limit up to which a business. The act has been highly publicized and its intended effect is to help stave off concerns of a recession by.
Economic stimulus act of 2008 congressional budget. The economic stimulus act also increased the total amount of qualifying property. Joint committee on taxation, technical explanation of the revenue provisions of h. The economic stimulus act of 2008,1 signed on february, 2008, was passed to energize the national economy.
The economic stimulus act esa of 2008 was passed in early that with just such a purpose. Administration enacted the economic stimulus act of 2008 in february. The american recovery and reinvestment act of 2009 arra, p. What does economic stimulus act of 2008 mean in finance. The economic stimulus act of 2008 contains two provisions that provide tax benefits for businesses. Economic stimulus act of 2008 publication economic stimulus act of 2008 february, 2008 on february, 2008, president bush signed into law the economic stimulus act of 2008 the act. Economic stimulus act of 2008 wikisource, the free. The provision of interest to most taxpayers is the recovery rebate provision intended to deliver an expedited fiscal stimulus to the economy. The economic stimulus act of 2008 physical therapy. Aassessing the macro ssessing the macro eeconomic impact. Consumer spending and the economic stimulus payments of. Meaning of economic stimulus act of 2008 as a finance term. State notes marchapril 2008 federal economic stimulus. The house and senate on february 7, 2008 passed the economic stimulus act of 2008.
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. Economic stimulus act of 2008 wex us law lii legal. Volume 14 issue 1 2008 2008 economic stimulus act while individual tax rebates have received the most media attention, the business incentives could prove to be particularly advantageous for a range of business entities. 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. Public law 110 185 economic stimulus act of 2008 content. Business tax provisions of the economic stimulus act of 2008. Economic stimulus act this report highlights the depreciation changes in the economic stimulus act of 2008 that affect taxpayers. The national bureau of economic research nber, in december 2008. Stimulus act esa of 2008, enacted in february 2008, consisted primarily of a 100 billion dollar program that sent economic stimulus payments.
A federal law that attempted to avoid or mitigate an economic recession. You must file a federal tax return for 2007 to be eligible for the stimulus payment. The 2008 stimulus package increased the deficit by about 1% of gdp. However, the payments are being estimated using information reported.
Economic stimulus act of 2008 publication economic. Economic stimulus act esa of 2008, enacted in february 2008, consisted pri marily of a 100 billion dollar program that sent tax rebates, called economic stimu lus payments esps, to approximately million us tax filers. Section 6428 of the internal revenue code of 1986 is amended to read as. Economic stimulus act of 2008 the economic stimulus act of 2008 had three main parts. This filing requirement applies to some people who do not normally file, including many lowincome households and recipients of social security, certain. Economic stimulus act of 2008 financial definition of. Recall that the purpose of fiscal stimulus is to increase either ad or as with. The act provides several kinds of stimulus intended to boost the us economy in 2008 and to avoid or lessen an economic recession. Joint committee on taxation, description of the economic stimulus act of 2008 jcx808, january 28, 2008. 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 oklahoma public employees.
Business provisions of the economic stimulus act of 2008. Economic stimulus act of 2008 government publishing office. The act increases the expensing allowance for depreciable business assets and reinstitutes bonus depreciation. Recovery rebates and incentives for business investment sec. The act provides tax rebates for low and middleincome us taxpayers, and. The economic stimulus act of 2008 and the american. These economic stimulus payments esps, as they came to. Federal economic stimulus act of 2008 summary of business incentives the federal economic stimulus act of 2008 provides businesses with two tax incentives accelerated all in one year, 2008. Marchapril 2008 federal economic stimulus act of 2008 by jay wortley, senior economist, and david zin, economist the federal economic stimulus act of 2008 was passed by congress on february 7, 2008, and signed into law by president bush on february, 2008. As such, any overpayment resulting from the recovery rebate credit was subject to the refund offset provisions for tax debts and for certain nontax debts. House of representatives on january 29, 2008, and in a slightly different. Exceptions and special provisions are not covered, so you should consult your accounting and tax professionals for advice specific to your situation. Economic stimulus act of 2008 how is economic stimulus.
The desirability of this historicallyimportant use of fiscal policy depends critically on. Protesters at vilsack announcement in ames 021 5954727792. The economic stimulus act of 2008 did not alter any of the offset authority under the law in effect at the time. This document,1 prepared by the staff of the joint committee on taxation, provides a description of the economic stimulus act of 2008.
The economic stimulus act of 2008 will provide million u. In short, with the economic stimulus act of 2008, policymakers tried to increase disposable income temporarily through tax rebates in the hopes that households would increase or maintain their spending levels and so end or at least mitigate the severity of a u. February 2008 business tax provisions of the economic stimulus act of 2008 on february, 2008, the president signed h. Bush signed into law the economic stimulus act of 2008, which provides for economic stimulus payments to be made to over million american households. Tax credits for individuals people who filed tax returns for either 2007 or 2008 could qualify for recovery rebates. The economic stimulus act esa of 2008, enacted in february 2008, consisted primarily of a 100 billion dollar program that sent economic stimulus payments esps to approximately million u. Consumer spending and the economic stimulus payments of 2008. Im pleased to be joined by leaders of both parties to enact an economic.