Deal Reached on Tax Rebates for Stimulus
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WASHINGTON -- Democratic and Republican congressional leaders reached a tentative deal Thursday on tax rebates of $300 to $1,200 per household and business tax cuts to jolt the slumping economy.
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The package is expected to include more than $100 billion in one-time tax rebates for individuals and an opportunity for businesses to rapidly write off their capital investments.
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Even as lawmakers agreed yesterday on a tax rebate to stimulate consumer spending, a new threat to the economy is emerging because of the complex way the financial system has recently tried to cover its losses.
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The U.S. Senate Finance Committee approved a $157 billion economic stimulus package on Wednesday that offers smaller tax rebates to more people than a plan passed by the U.S. House of Representatives.
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President Bush urged Congress today to quickly pass the economic stimulus plan that would give Americans tax rebate checks. But many Senate Democrats want to include extended unemployment benefits in the plan -- a provision House Democrats agreed to drop.
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Americans eligible for tax rebates of $300 to $1,200 under the new fiscal stimulus act will not receive their payments until they file a 2007 income tax return, even if they make too little to owe any taxes, the Internal Revenue Service said on Wednesday.
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A tax rebate is at the center of a plan to stimulate a flagging economy.
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The White House and the Democratic-led Congress on Thursday reached a tentative deal on an economic stimulus package of tax rebates for families and incentives for business investment with a cost that a top Democrat said may exceed $150 billion.
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Democratic and Republican leaders in Congress reached a tentative deal with the Bush administration on tax rebates and business tax cuts.
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Democratic leaders in the U.S. House  of Representatives on Tuesday began laying the groundwork for  an economic stimulus plan of about $100 billion that likely  will include tax rebates to help stave off a possible  recession.
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The economic stimulus bill sent to President Bush includes a pair of tax breaks that could save companies tens of thousands of dollars on purchases of IT equipment -- if they buy this year.
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As negotiations begin on an economic stimulus package, the big fight will be over whether to put extra money in the hands of low-income families who paid little or no income tax last year.
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An economic stimulus package to help stave off recession is on the fast track in Congress after Democratic and Republican leaders in the House of Representatives on Wednesday reached a rare agreement to quickly pull together a bipartisan plan.
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WASHINGTON -- In a breakthrough that could mean a $500 bonus for thousands of Washington state taxpayers, congressional negotiators yesterday agreed to allow state sales taxes to be deducted from federal returns for the first time since 1986.
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Washington state residents were one step closer Wednesday to being able to deduct an estimated $500 million in sales taxes from their federal tax returns.
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An agreement in the Senate appeared within reach on an economic-stimulus program on Thursday.
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Amid reports of a tentative of deal between lawmakers and the Bush administration on a proposed stimulus package for the U.S. economy, the White House said on Thursday that there is no final agreement yet but there is progress.