Don't pay taxes? You get money back anyway...

Tentative Deal Is Reached on Stimulus Plan

By THE ASSOCIATED PRESS
Published: January 24, 2008

Filed at 10:53 a.m. ET

WASHINGTON (AP) -- 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.

Congressional officials close to the negotiations said House Speaker Nancy Pelosi and Republican Leader John Boehner of Ohio reached agreement in principle in a telephone call Thursday morning.

The officials, speaking on condition of anonymity, said the two wanted key members of their parties to sign off on the accord before any announcement.

The development came as the Bush administration, which also has been pushing for a deal, said agreement seemed imminent. ''Our understanding is there is no final deal yet but they are making progress,'' presidential spokeswoman Dana Perino said early Thursday.

Pelosi, D-Calif., agreed to drop increases in food stamp and unemployment benefits during a Wednesday meeting in exchange for gaining rebates of at least $300 for almost everyone earning a paycheck, including low-income earners who make too little to pay income taxes.

Pelosi, answering questions from reporters Thursday after a speech in Washington, said, ''I am not confirming anything.'' But Pelosi added she would have something to say later.

Under the tentative plan, families with children would receive an additional $300 per child, subject to an overall cap of perhaps $1,200, according to a senior House aide who outlined the deal on condition of anonymity in advance of formal adoption of the whole package. Rebates would go to people earning below a certain income cap, likely individuals earning $75,000 or less and couples with incomes of $150,000 or less.


So if you don't pay taxes you get a tax rebate, if you pay a lot of taxes you don't get a tax rebate. Makes perfect Washington sense.

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