Congressional leaders reach tax accord

The tentative deal involving $150 billion worth of tax rebates would provide $300 to $1,200 per household.
JAN 24, 2008
Congressional leaders reached a tentative deal on $150 billion worth of tax rebates that would provide $300 to $1,200 per household, according to published reports. House Speaker Nancy Pelosi, D-Calif., and House minority leader John Boehner, R-Ohio, reached agreement in principle in a telephone call this morning, the Associated Press reported. Ms. Pelosi reportedly agreed to drop increases in food stamp and unemployment benefits in exchange for rebates of at least $300 for most workers, including low-income workers who make at least $3,000, even if they make too little to pay income taxes. Under the tentative plan, families with children would receive an additional $300 per child up to $1,200 for couples with incomes of $150,000 or less and for individuals earning no more than $75,000 a year. The rebates would cost about $100 billion, according to congressional aides. Business could immediately write off 50% of purchases of plant and capital equipment under the tentative deal, and small businesses could write off additional purchases of equipment. The deal would also allow Fannie Mae and Freddie Mac to buy home mortgages much larger than the current $417,000 limit allows them to. The lending cap for the two government-sponsored enterprises that are the two biggest financers of U.S. home loans, could reach as high as $700,000 in areas with the highest home prices, according to House Financial Services Committee chairman Barney Frank, D-Mass. Senate Finance Committee chairman Max Baucus, D-Mont., has scheduled a meeting of that committee next week to discuss the stimulus package. Mr. Baucus and Finance Committee ranking minority member Charles Grassley, R-Iowa, have “agreed to work together, move quickly, and mark up economic stimulus legislation next week,” Mr. Baucus said.

Latest News

Treasury unveils Trump Accounts fund lineup led by BlackRock, Vanguard, and State Street
Treasury unveils Trump Accounts fund lineup led by BlackRock, Vanguard, and State Street

Five low-cost index ETFs to anchor Trump Accounts as advisors weigh options against 529 and UTMA plans for clients

House panel unanimously advances advisor compensation reform bill
House panel unanimously advances advisor compensation reform bill

A bipartisan proposal aimed at aligning advisor compensation rules with modern business structures is headed to the full House.

Vanilla, WealthFeed land new RIA partnerships
Vanilla, WealthFeed land new RIA partnerships

Vanilla is extending its estate planning tech to Callan Family Office's ultra-high-net-worth business, while WealthFeed's organic growth engine will now be available to roughly 100 advisors at The Mather Group.

As Trump Accounts prep for July 4 launch, Franklin Templeton plans $1,000 match
As Trump Accounts prep for July 4 launch, Franklin Templeton plans $1,000 match

“We are helping families take an important first step toward building a financial foundation for the next generation,” said Franklin Templeton CEO Jenny Johnson

Savant Wealth Management enters Maine with latest acquisition
Savant Wealth Management enters Maine with latest acquisition

Richard Brothers Financial Advisors joins the fee-only RIA, adding its first Maine office and $240 million in client assets

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.