The better than expected Q3 Real GDP report has raised the debate over whether the American Recovery and Reinvestment Act of 2009, aka the stimulus package, was a positive catalyst in helping. I will not get into the political discussion and will only specifically discuss the tax cut that was given to individuals that qualified under certain income levels and put this into perspective with the evils of inflation and the damage it can do to lower income earners specifically. In the stimulus package, a payroll tax credit of $400 per worker and $800 per couple in 2009 and 2010 with income thresholds of $75k for individuals and $150k for joint filers was given. This equates to an $8 tax cut per week per person. According to AAA, the average gallon of gasoline yesterday hit its highest level in a year at $2.69 up $1.06 from Jan 1. That equates to an extra cost of about $12.50 per person per week on average.
What's been said:
Discussions found on the web: