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What Economic Stimulus Means For You

By: Andy Cunningham Email
By: Andy Cunningham Email

It isn't supposed to solve the nation's ailing economy overnight. But the president and congress hope the $787-billion dollar economic stimulus plan will at least get the country on the road to recovery.

But many wonder how the stimulus plan will affect the average American.

Here's how the economic stimulus plan would help him.

When you buy a new car in Kentucky, you pay a six percent tax. The state calls it a usage for the right to drive the car on the state's roads. Now through the end of the year, you will be able to deduct that tax from your federal taxes.

So for the $25,000 dollar car buyers could deduct $1,500 off there taxes next year.

The government also wants to help out the housing market by replacing all those for sale signs with first time home buyers.

The incentive -- an $8,000 tax credit.

But if you're not in the market for a new car or a new home, help is on the horizon by way of a slightly bigger pay check beginning in June.

While average taxpayer's extra eight to 13 dollars a week in their paycheck doesn't sound like much, economists say it translates into a 500 dollar salary increase, after taxes, for a single worker.

And those on Social Security or disability would receive a $250 tax credit.

There's also a bonus for parents who send their children to UK or any other college for that matter.

They're eligible for a tax credit of up to $2,500.

The economic stimulus plan is predicted to bring more than 48-thousand jobs to the Bluegrass State.

The Courier-Journal reports that President Obama's signature tax cut will benefit nearly two million Kentuckains.

The state also stands to receive more than half a billion dollars for road and bridge work.


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