A great article by Jessica Chen posted on Entrepreneur.com’s blog says:

In an effort to rouse the slowing economy, Congress announced a deal today that includes nearly $50 billion in business tax cuts. It would allow small businesses to write off a portion of certain purchases and invest in new equipment. In addition, the plan is set to give refunds of $600 to $1,200 to about 116 million families in the U.S. The rebates are expected to go out in June.

House Speaker Nancy Pelosi said that although she’s not entirely pleased with the package, she does believe it will help stimulate the economy. If not, “then there will be more to come,” she said.

Still, this is one of the timeliest and targeted packages that is showing ample compromise on both sides. Republican Leader John A. Boehner said, “Many Americans believe that Washington is broken. I hope that this agreement will show the American people that we can fix it and will serve to move along other bipartisan agreements that we can have in the future.” Majority Leader Harry Reid said they aim to have the package to President Bush for his signature by February 15.–Jessica Chen

Maybe you’ll be able to write off a few more business related purchases in the near future if it passes. I’d love to hear your comments on this proposed economic stimulus plan.

I think that even if you get a little bit larger check this year, that’s great…but it’s not going to benefit us much in the long term. With the deficit increased, and the problems in several of the markets (especially the real estate market), giving people a little cash to spend is a good idea, but not a long term solution.

What is the long term solution? Leave taxes where they are for a while, cut spending, and reduce (or hopefully eliminate) our oil dependency. Oh…and get rid of the IRS.

- John