Our new president elect is hoping to put a new stimulus package together shortly after he takes office. His team is already working on a new economic plan. They are hoping to send out another round of stimulus checks to Americans as well as many tax breaks, and many other changes that will help those on unemployment. It will also provide some assistance to those looking to cash in on some of their retirement savings.

 

Stimulus Checks

 

Barack Obama has proposed a new tax credit. This new credit could allow for up to $1,000.00 per family to help ease income taxes. This will kind of work like a stimulus check but will need to be facilitated through employers. The employer will be required to not charge income tax for the first $8,100.00 of an employees wages.

 

Retirement Accounts

 

Another section of the economic plan would include a break for individuals looking to cash out some of their retirement savings early. Obama is hoping to allow those having financial troubles be allowed to access some of their retirement savings without penalty. The plan would allow for up to a $10,000.00 withdraw without penalty at any time during 2009. These withdrawals would still be subject to state and federal taxes.

 

Income Tax

 

We could see a large tax rate decrease for the middle class. This would be able to happen with the proposed tax increase for those who earn more than $250,000.00 annually. The new tax rate for those with high income could be as much 36%-39%.

 

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The plan would offer a tax credit to companies that are hiring new full time employees. They could receive up to $3,000.00 for each new hire. Unemployment benefits would be extended for up to thirteen weeks with a break on the taxes that are normally paid on these benefits. There would also be a 90 day extension on home foreclosures.