forward to tax rebate

By AMY LANSDON

& MATT CLOWER

Staff Writer

President George W. Bush recently signed into law the largest reduction in taxes since 1981.

Although some of the tax cuts will not take effect until 2010 there is good news for American workers who will as early as July begin receiving checks from the Treasury Department.

The amount of the checks will be determined by the individuals marital status. Single individuals will get a check for $300; single parents will get a check for $500 and married couples will receive a check for $600.

A pocket full of extra money always sounds good to Americans, and the people of Pike County are no different. Many are already making plans on what to do with their extra cash when the check arrives.

Kat Andrews of Troy is looking forward to the rebate check and thinks the president is really trying to help the economy.

"I guess every penny counts, I’ll probably put it in the bank," she said.

"I believe Bush’s intentions are good. He’s trying to do all he can to get the economy in shape. He’ trying to put some self sufficiency back in the people."

Willie Newsome hoping to do something constructive with his rebate, like getting out of debt.

"They need to send it on, I could use it to catch up on some bills," he said. "I feel like this will help out our economy,"

José Pizarro is more pessimistic about the ideas of getting money back from the government.

I’ll believe it when I see it," Pizarro said. "I don’t want to sound pessimistic, it’s just that I don’t want to be overly optimistic and be disappointed.

"This seems kind of questionable because even though we will be getting money back it could lead to more problems, like inflation.

It seems like we went through this same stuff when Bush’s father was president and it led to us paying more taxes."

A check for and extra several hundred dollars will make the recipient’s day, but there is more to Bush’s tax cut plan that will make income earners happy. Beginning July 1 taxpayers will see a little extra in their take-home pay. The current bottom rate of 15 percent will be replace by a new bottom rate of 10 percent, leaving more money to take home. Through 2006, the five current income tax rates – 15 percent, 28 percent, 31 percent, 36 percent and 39.6 percent – will gradually be replaced by lower rates – 10 percent, 15 percent, 28 percent, 33 percent and 35 percent.