February 21st, 2009
12:00 PM ET
13 years ago

CNNMoney: Your share of stimulus tax breaks

NEW YORK (CNNMoney.com) - Roughly 97% of American households could see tax savings as a result of the American Recovery and Reinvestment Act, according to a new analysis by a nonpartisan research group.

The Tax Policy Center crunched the numbers and concluded that the average savings would be $1,179. But how much a household actually gets depends on income, marital status and whether a filer has children. The savings range from a few hundred dollars to several thousand.

The law, which President Obama signed on Tuesday, contains a range of tax breaks for individuals. Those likely to affect the greatest number of households are the new Making Work Pay credit worth up to $400 ($800 for joint filers); a patch to protect middle- and upper-middle-income families from having to pay the Alternative Minimum Tax; and expansions of the earned income tax credit and the child tax credit for low-income families.

There are also breaks that address specific situations: a new credit for first-time home buyers, a sales tax deduction for car buyers and a new credit to help pay for college tuition. For people receiving unemployment benefits, the first $2,400 will be tax free.

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Filed under: Stimulus
soundoff (22 Responses)
  1. Good Luck to Them

    97$ of American Households?? How is this possible when only 45-50% of people pay federal taxes anyway???

    February 21, 2009 12:47 pm at 12:47 pm |
  2. Zion

    President Obama is doing an outstanding job. I know he's doing an outstanding job because I am looking at the other posts, and I don't see legitimate criticisms, but jealousy. I didn't realize that a productive, intelligent president with confidence could be so alarming. He receives criticism left and right, and is still strutting. Many of you don't know what that's about...it's about having God in your life.

    February 21, 2009 01:14 pm at 1:14 pm |
  3. Penn Voter

    $1,179.... wow, but it is going to cost each us close to $30,000 in future taxes and interest.

    Sounds like a bad investment to me.

    February 21, 2009 01:16 pm at 1:16 pm |
  4. Faith, IN

    At least it's not a gimmick and every little bit helps.

    February 21, 2009 01:20 pm at 1:20 pm |
  5. cnnnewser

    Please post the list of republicans that are refusing the stimulus money.

    February 21, 2009 01:55 pm at 1:55 pm |
  6. Texas Teacher

    The largest savings would be from ENDED the war in IRAQ! Let them spend their own money to rebuild their country. Bush gave them DEMONCRACY! Well, now it is time for them to accept the responsibility of living in a demoncracy! At least they are starting off with plenty of money to do so! Those BILLIONS of DOLLARS that WE, the TAX PAYER is paying for will surely help us out of this depression we are in! Will NO ONE speak for us.... will NO ONE speak for the PEOPLE? It is only Obama who speaks for us... and everyone it appears is trying to stop him! EVERY REPUBLICAN that is!

    I'm disgusted... purely disgusted!

    February 21, 2009 02:12 pm at 2:12 pm |
  7. alvino

    Alan Keyes just took over the lead in the, " Dumbest Man in America" competition.

    February 21, 2009 02:42 pm at 2:42 pm |
  8. Texas Teacher

    cnnewser.... oh, yes, they are refusing the money.... they cannot get rich off it... there will be no one who can cover their as...se while the line their pockets! The only ones who will benefit will be people the money is their the help! They are proving with their refusal to accept the money that they CANNOT stand the transparency. So they do not want the paper work and the foot work it will take to administer the money!

    Pay attention... because they are the ones who are telling us exactly who they are! And they WILL COME UP FOR RE-ELECTION! They better think fast and hard about their stance on this matter! Those states have a WHOTE LOT OF PEOPLE WHO NEED THOSE BREAKS! Someone may have to turn off the lights once the jobs start coming in! Some of their white sheet/cone hat crowd might decide they need a bit fire on their capitol lawns! They may be truly surprised when the dust begins to clear and their constituents begin to realize what they are refusing because THEY CANNOT GET RICH OFF IT!

    February 21, 2009 02:53 pm at 2:53 pm |
  9. Arielle Yanaba

    Yeah, the Republicans were against this? I want their names! They will not be in office again!

    February 21, 2009 02:58 pm at 2:58 pm |
  10. Sue

    Well, Rethugs, you got your tax cuts. Next you will be whining that not enough jobs were created (didn't you get the memo that tax cuts create zero jobs?) But Obama buckled and included it in the package anyway.

    I do think the new home buyer credit will help home prices recover, and that the car and college credits are good ideas. Were they Republican?

    February 21, 2009 02:58 pm at 2:58 pm |
  11. Omkar Suchit

    "concluded that the average savings would be $1,179".
    And the republicans are selling it as $13 per week. Like McCain's daughter wrote,Republicans should learn to use a computer so they can do basic math

    February 21, 2009 03:04 pm at 3:04 pm |
  12. Rob

    How about we scrap the Tax Code and start over. Everyone making above 18,000 pays 12% flat tax. No credits no deductions.

    February 21, 2009 03:12 pm at 3:12 pm |
  13. drewski

    that's funny...

    February 21, 2009 03:21 pm at 3:21 pm |

    Now, that's change you can believe in. Tax cuts targeted to those who will spend the money will definitely lead to more circulation of money and thus, spur economic recovery along with other spending on construction and other projects, for instance. The US economy is big enough to withstand the current deficit spending. The debt will be paid off easily with a string economy. Just look at the Clinton years and the huge surpluses which Bush and his Republican cronies turned into a huge deficit. With 16 years of Democratic Party rule, the debt will be retired.

    February 21, 2009 03:40 pm at 3:40 pm |

    Historically, the economy has always done better under democratic part presidents. Even die hard Republican, Donald Trump, ackowledged this on his appearance on CNN. It's simple: when people have no confidence in the economy for their future, they stop spending or pull back significantly as is the case now. The ripple effect is that products don't sell and companies cut back on inventory and production as we all are witnessing. The end result is companies closing their doors and the viscious cycle leads to what we have now: a deep recession of unimaginable proportion. The economic recovery act is strong enough to jolt the economy into some type of recovery. And, additional monies in the pockets of consumers will add to that. Cumulitively, that will eventually lead to a strong and robust economy which will help pay down the nation's debt. Republicans can go to hell.

    February 21, 2009 03:47 pm at 3:47 pm |
  16. Obambi

    Faith–not a gimmick? How about Obama getting people like you to praise him for ruining the country? and Texas teacher–Obama is escalating the war–had you not heard? Lookin' out for ya!!

    February 21, 2009 04:00 pm at 4:00 pm |
  17. bill in montgomery

    Most of the tax breaks will go to the parasites who don't contribute anything anyway! The American taxpayer will be the one penalized by having to support those who don't contribute anything anyway, but whine and complain about how "The Man" is discriminating against them because they can't lay up in the projects and live off welfare, dealing and using drugs, and fathering or mothering as many illegimate children as they can.

    February 21, 2009 04:03 pm at 4:03 pm |
  18. Proud American

    The republican govenors who are refusing the stimulus should also lose all funding from the federal government give their state. If the republican Idiots want to put on a show for the other few Idiots who support them, let's give them a show.

    February 21, 2009 04:05 pm at 4:05 pm |
  19. Janey

    Rob-sounds fair to me–since I now pay about 25% on 40,000. and that is with deductions–However, that is not the Democrat way–it will be more like 40% when BO and Nancy are through–we need to pay for their luxuries, dontcha know? 12% tax I could live with.

    February 21, 2009 04:05 pm at 4:05 pm |
  20. Millie McGuire

    Whatever amount I get as a tax savings this year I will save up for the big taxation coming just right up the road. There's no way we taxpayers will not have to share in paying off that trillion dollar debt Obama just signed into law.

    February 21, 2009 04:06 pm at 4:06 pm |
  21. In Michigan

    It's $7.69 extra a week for single workers with no children. ($400/52) Or, just a little over an extra $30 monthly.

    February 21, 2009 04:07 pm at 4:07 pm |
  22. gina

    I think its funny that someone started talking about welfare abuse being related to projects, big families, and drug use. I think the largest group of people on welfare are white and suburban. The only people I see abusing the system are "starving college students" that are holding out for a "job in their field", whatever that is. There is a widespread misconception that the people who have the most somehow earned it (code for: deserve it for their innate superiority). They never get tired of patting themselves on the back!! $10m bonus? I earned it!! Born in to poverty? They earned it! Organized crime in the form of our justice system? We earned it!

    February 22, 2009 08:05 pm at 8:05 pm |