Michigan Senator, Carl Levin pleaded with president Obama in his Senate floor statement last Friday about how crucial the American Recovery and Reinvestment Act was for the state. He believes it is an, “essential step in stabilizing our economy,” and that passage of the Act, “will give us some urgently needed momentum.”
President Obama signed the American Recovery and Reinvestment Act of 2009 into law Tuesday the 17th of February, after the House and Senate approved the conference report the prior Friday. The stimulus bill, which ended up coming close to 800 billion dollars, may be the beginning to helping the crashing Michigan economy.
Tax relief makes up the largest part of the package with 288 billion in funding. In Michigan it will be giving 3.9 million workers a tax cut. It will also help out by giving a tax credit to 120,000 families struggling with the cost of college tuition.
The working class of Michigan will benefit from many different tax credits. One, which was introduced in the Act, the “Making Work Pay” tax credit will add on an additional 13 dollars to employees take home pay, to the sum of 400 dollars per person or 800 dollars per family. It is planned to show up on workers paychecks instead of in a large sum.
For those out of work, the “Not Working” tax credit, will give 250 dollars to those who are unemployed, retired, or disabled.
Those who are looking to buy their first home in Michigan will also be benefiting from the tax credits. There will be an 8,000 dollar credit, that’s not required to be paid back, for those who are buying or who bought after January 1, 2009. If a first time home buyer bought between April 9, 2008 and December 31, 2008 the credit will be 7,500 dollars and must be paid back within 15 years.
There are also deductions on new car purchases, including a 7,500 dollar tax credit for families who invest in Hybrid cars. Also making the list, are deductions for energy saving installations, and 20 billion going to tax incentives for renewable wind energy.
The hefty and detailed Act will be being monitored by the White House’s new website, Recovery.gov. Citizens are encouraged to stay informed and to track the spending of the package.
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