Article Summary 2

Article Summary 2 - being a tax incentive for car buyers....

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Dr. Terri Barr Business 101 February 4, 2009 Article Summary In Washington, on Wednesday, February 4, 2009, the Senate voted to increase the economic stimulus package with a tax credit for current homebuyers. The amount would be up to $15,000 per homeowner. This stimulus package is addressing one of the main causes for our country’s on-going recession. An economic stimulus refers to government spending or tax measures. The general goal of an economic stimulus is to revive an economy in a recession. The tax credit would total a cost of about $18.5 billion. Lawmakers, both Democratic and Republican, are trying to reduce the sum of the stimulus which at present is roughly $900 million. Instead, they want to focus more on provisions that will rapidly encourage spending and create much needed jobs. Within the past two days, there have been two amendments intended to encourage customers to make significant purchases, one being the economic stimulus package and the other
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Unformatted text preview: being a tax incentive for car buyers. The tax incentive for car buyers would allow the deduction of sales tax and loan interest that were made this year. The deputy director of Peterson Institute of International Economics said there were some problems with both of the amendments. The problem with the economic stimulus package created for homebuyers is that homebuyers would have issues with getting receiving mortgages due to the tightness in the credit markets. The issue with the tax incentive for car buyers is that they did not focus on fuel-efficient cars. With the additions on Wednesday, the total cost of the package has gone way over $900 billion, which is the limit that was set by President Obama. A final vote on the stimulus plan will become public as early as Thursday, February 5....
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This note was uploaded on 02/22/2012 for the course BUS 101 taught by Professor Rollins during the Spring '08 term at Miami University.

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