House leaders and the White House announced yesterday that a tentative agreement on an economic stimulus package of roughly $150 billion that would pay stipends of $300 to $1,200 per household, and more for families with children, plus provide tax incentives for businesses to encourage spending. “This package will lead to higher consumer spending and increased business investment” said President Bush.
How will this affect your business?
For some businesses, the stimulus measure will allow them immediate tax write-offs for 50% of the purchase price of plants and other capital equipment and permit smaller businesses to write off additional purchases of equipment. A provision to allow businesses suffering losses now to reclaim taxes previously paid was also mentioned.
Will your customers get a rebate? Will they spend it on your services or products?
A recent poll indicates that people who might receive a rebate said they would use the money for gas or groceries. Which would help the economy but if they choose to pay bills they will help themselves but not the economy.
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