Brand New 2009 Economic Stimulus Is Out Of This World!

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President Obama will be pushing through a brand new 2009 economic stimulus to help jump-start the economy! Just last week the stock market was starting to recover but since the recent announcements about GM and Chrysler a lot of doubt has been cast and this new plan is set to right the economy once and for all.

Here are the details of the new Economic Stimulus:

• Federal Tax Decrease – All taxpayers making less than $79,000 single and $ $154,000 joint will be lowered one tax bracket for 2009 based on your 2008 return.  This means if you were in the 28% tax bracket then your 2009 income will be in the 25% bracket.  Those in the 25% bracket drop to 15%!

• Stimulus Checks – On top of the tax breaks, stimulus checks will be sent out for $1000 per single taxpayer ($2000 joint) with an additional $500 per child.  These stimulus checks should start going out as of April 1st.

• Unemployment Benefits – If you were laid off starting 2008 then unemployment insurance will cover 100% of your salary for six months.  This is retro-active to when you first filed for unemployment benefits.

• Mortgage Proof Law – As we know the sub-prime housing crisis is a mess and a tangle of paperwork where banks aren’t even sure what mortgages they hold.  Banks will have 60 days to list all of their mortgages with proof.  If your mortgage isn’t listed then your loan will be considered paid in full.  This is a huge benefit to homeowners facing foreclosure and should help stabilize housing across the country!

• New Home Incentive – Anyone purchasing a new new home in 2009 will receive a $10,000 tax break.  Previously the break was only for first home buyers.  The hope is that there will be many more buyers now to help stabilize the market and prevent the free fall caused by foreclosures.

• New Car Incentive – There will be a $2000 rebate for all new cars bought in 2009 that were built in the US.  This includes companies like Honda and Toyota so long as the factory is American.  The incentive goes up to $3000 for energy efficient cars.

• Stock Portfolio Adjustment – You will be able to write off 25% of your stock losses incurred in 2008.  This will be a separate form from your taxes.  There will be a rebate based on the confirmed amount that you must use at a stock brokerage to buy new shares of stock.  The idea here is to soften the losses of ’08 while getting investors to pour more money into the market in ’09 to build up confidence and prices.

• Unemployment Volunteering Act – If you were laid off, cannot find new work, and your unemployment benefits have expired you can continue getting benefits if you volunteer with a qualified organization.  These will include hospitals, the parks department, schools, and certain charitable organizations.  As it’s difficult in this contacting market to find work, this act will allow people to remain productive and earn additional benefits.

• Energy Dependency Rebate – In an attempt to decrease our dependency on oil you will be able to get a 100% rebate on all energy efficient products.  Qualified items such as solar panels can be deducted on your 2010 return for 2009 income.  Not only does this improve energy efficiency but it also creates a market for energy innovation as demand for energy efficient products rise.

• Small Business Incentive – There will be increased incentives for small businesses.  The goal is to help those already out there to help stay afloat and to encourage others to start.  It’s believed that strong small businesses can help the economy grow more than large businesses can.  This includes side-businesses (read bloggers!).

This is by far President Obama’s boldest plan! It’s obvious that the President is adamant in pulling the US out of this recession.  This April 1st will be remembered for years to come!

In other economic news, The Economist has launched a new project that cashes in on the public’s growing interest in economics.

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