Economic stimulus package shrinking
If changes to the economic stimulus package go through, more people might end up needing instant payday loans because they need cash in a hurry.
Yesterday the U.S. Senate passed an $838 billion version of the economic stimulus package, and today Congress is working to lower the cost of the bill. They have pared it down to $789 billion.
Previously in the stimulus package
Previously, the bill contained tax cuts for workers that would add up to $1,000 for couples or $500 for individuals over a year. The cut would work by taking fewer taxes out of each paycheck, usually adding up to about $20 per check.
Tax cuts trimmed
The new, cheaper version of the plan would trim those cuts to $800 for couples and $400 for individuals. As anyone who has ever needed instant payday loans can attest, $100 can make a lot of difference. People who were expecting bigger numbers in their paychecks might end up needing payday loans after all if the tax cuts are lowered to the point of making no difference.
Senators who attended the cost-trimming negotiations have talked about some of the larger items that will still appear in the scaled-down version of the bill.
What will survive
State aid previously was rumored to have been cut from the bill. However, it appears Congress still plans to include a provision that would spend $44 billion on aid to states.
The goal to invest in infrastructure still stands. The bill dedicates $6 billion to $9 billion to modernizing and repairing schools. This is a disappointment for supporters of an item the bill’s earlier version that would have spent $20 billion on school construction.
Preparing for payday loans
Don't expect another stimulus check this year.
Though Republicans fought tooth and nail for more tax cuts, it looks like very little relief will directly reach taxpayers. There are still credits that would help out with buying a car, college tuition and health insurance.
However, taxpayers who just need extra spending money will probably have to rely in instant payday loans if they need extra cash between paychecks.
The tax cut still only adds up to basically beer money, and they still haven’t even gotten to the larger problems our economy is going to be facing down in less than ten years, first of which is Social Security, and then Medicare/Medicaid, which by some estimates are five years or less from major problems. Bush tried – but he wouldn’t be listened to, which at this point in time is actually a good thing. Privatized SS accounts would have lost a lot of money in the market, had that happened.