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The Check Won't Be in the Mail |
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With the unemployment rate rising to a 16 year high a 7.2% on Friday, Senate Democrats convened a rare weekend meeting to hash out President-elect Barack Obama's $775 billion economic stimulus proposal. Obama and key advisers have tried to sell their stimulus all week. Aides say tax relief could total about $300 billion. The main part of the bill is a $500 tax cut for middle-class workers or $1,000 for families. Don't expect that in a check. Rather, it will be used for lowering federal withholding taxes in future paychecks. The reason behind this is because last years $600 stimulus checks was mostly being used to pay off debt intead of spending it in the economy. Another highlight of the Obama proposals is a tax credit for employers who retain or hire more workers.
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