Economic Stimulus Act of 2008

The Economic Stimulus Act of 2008, referred to in the German program also pulse or burst, is a law to support the economy of the United States. It combined various economic measures to avoid or mitigate a possible recession as a result of the global financial crisis. The law was signed by President George W. Bush on February 13, 2008.

Measures

• Recipients of middle and low income receive discounts on the federal income tax. The tax rebates were paid in the form of tax rebate checks to taxpayers in 2008. Taxpayers with incomes below the tax-free amount received U.S. $ 300 ( jointly assessed married couples $ 600 ) paid. There are also 300 U.S. dollars per child under 17 years. Relatively low income earners are favored more.
• Tax relief for investors as investment incentives.
• The maximum amounts for mortgages, which are allowed to purchase the so-called government sponsored enterprises were raised. The background is that mortgages were by the sharp rise in house prices before the financial crisis from 2007 to finance purchases of new homes become necessary in a volume, the amount of which was higher than purchase up to the Fannie Mae or Freddie Mac mortgages and could refinance it. The banks did not grant more mortgages so that the housing prices fell due to lack of financing for new purchases without such refinancing. By raising the limits to which should be counteracted.

Financial volume

As a volume for the recovery plan 152 billion U.S. dollars for 2008 were provided. More 124 billion U.S. dollars will be spent over the next ten years.