President Bush signed legislation that will give most American households cash and grant tax incentives for business investment. Tax returns must be filed in order to receive the rebates. Congress, President Bush, the Federal Reserve and Wall Street hope consumers will put the money back into the economy; however, according to a recent Associated Press-Ipos poll, 45% plan on paying bills, 32% plan on saving or investing, while only 19% plan on putting the money back into the economy. The bill will provide $600 to individuals who have an annual gross income of $75,000 and lower, $1,200 for couples plus $300 for each child younger than 17 who have an annual gross income of $150,000 and lower. Singles who make more than $75,000 and couples whose income exceeds $150,000 will receive a smaller rebate. Workers, disabled veterans, seniors and veterans’ widows who can show $3,000 in Social Security or veterans’ disability benefits in 2007 will also be eligible for $300. These payments will be mailed separately from tax refunds and recipients should start receiving these payment mid-May.
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