Response From US Senator Mark Pryor

Dear friend: Thank you for contacting me regarding the 2008 Economic Stimulus Package. I appreciate hearing from you. Congress and the President worked together to provide a fiscally responsible economic stimulus package that will immediately put more money into the hands of hardworking Arkansans. I believe a short-term fiscal stimulus must be timely, targeted, and temporary. The most cost-effective short-term fiscal stimuli are those that provide money to Arkansans and businesses who are most likely to quickly spend the additional funds. I believe that relief to individuals and small businesses should be an important component of any stimulus package. Arkansas families today are struggling with higher energy, housing and food costs, not to mention a higher than average unemployment rate. Our economy reflects this strain as well as the concern many have about our economic future. I am proud that the Senate acted to give seniors, disabled veterans and working Arkansans a much-needed tax break. We also included safeguards in the bill to ensure illegal immigrants do not receive a rebate. I am hopeful this economic stimulus package will help give our economy the kick it needs, but I will continue to seek bipartisan solutions to spur economic growth and support Arkansas families. The Senate-passed economic stimulus package for citizens who paid federal income tax consists of $600 rebate checks per individual and $1,200 per couple who filed jointly. People who did not pay federal income tax, but who had a qualified income of more than $3,000, would get checks of $300 per individual or $600 per couple. In order to be eligible for the rebate, the taxpayer must report $1 of federal income tax liability or $3000 of qualifying income, defined as the sum of net self-employment income, veterans' disability payments (including payments survivors of veterans), and social security benefits. Those who earn up to $75,000 (phased out at $87,000) individually or up to $150,000 (phased out at $174,000) collectively as a couple will be eligible for the payments. Small businesses play a very important role in Arkansas' economy. I believe reducing the costs associated with new investment in plants and equipment will stimulate the business sector and help the economy recover. Tax reductions that apply to businesses through accelerated depreciation and expensing for new investments property could have the greatest short-term stimulus. Currently, businesses can expense up to $125,000 for new equipment placed into service. The economic stimulus package raises the amount businesses can expense for the purchase of property for 2008 to $250,000, with a higher phaseout limit of $800,000. The bill also provides a bonus depreciation for business property bought in 2008 and 2009. I am pleased to inform you that President Bush signed the Economic Stimulus Package into law on February 13, 2008. The IRS anticipates checks to be mailed to recipients beginning in May or June. For more information regarding the stimulus package rebates, I encourage you to visit the IRS website at www.irs.gov or call the Taxpayer Advocate Service at (501) 396-5978 or (877) 777-4778. Thank you again for contacting me about this important issue. I value your input. Please do not hesitate to contact me or my office about this or any other matter of concern to you. Sincerely, Mark Pryor Please Note, this is not a monitored email account. Due to the sheer volume of correspondence I receive, I ask that constituents please contact me via my website with any responses or additional concerns.