Economic Stimulus Act of 2008

On Thursday, the Senate finalized H.R. 5140, the "Economic Stimulus Act of 2008" and sent it off to President Bush for his expected approval this week.  There were a few changes made from the original House proposal but it is largely the same.  In summary:

1. We will receive the greater of a) 2007 federal income taxes paid to a maximum of $600 (single) and $1200 (married) or b) $300 (single) and $600 (married).  To be eligible you must have paid at least $1 in 2007 taxes or had $3000 in employment income + veterans' disability payments + social security payments.

The major change is that rebates are now allowed for disabled veterans and seniors living mostly on Social Security who do not have earned income.

2. If you receive $1 or more in rebate and have kids, you get another $300 per kid.  This is based on your 2007 tax return, so the rebate applies to kids on hand as of 12/31/07.  Any new bundles of joy circa 2008 will not get you more rebate.

3. The rebates still start phasing out at 5% of adjusted gross income (AGI) starting at $75K (single) and $150K (married).  So effectively if your AGI is greater than $87K (single) or $174K (married), then no rebate for you!  The phase-out applies to both the basic credit and the child credit.

The only other "no rebate" scenario is if your tax liability was zero and your wages/disability/social security was less than $3000.

4. No credits will be issued for anyone without a valid Social Security Number on the 2007 tax return.

5. The rebates are not considered taxable!  Well that's good news!

6. For single family home loans made between 7/31/07 and 12/31/08, the Act raises the conventional loan limit from $417,000 to $729,750.  FHA loan limits will also be increased to as much as $729,750 or even $829,750 if warranted based on market conditions until 12/31/08.  This should provide some help to homeowners who need to refinance into something more affordable this year.

This is incentive to file your 2007 taxes on time, as rebates are expected starting in May.  And hopefully the $106 billion in rebates and $45 billion in business tax incentives this will cost in 2008 will truly help stimulate our economy!  I bought Apple stock recently in anticipation that everyone will buy another iPod with the extra cash this summer! 

For more detailed information, visit the Senate Finance Committee website by clicking here.

New California Second-Hand Smoke Law - 1/1/08

New Law Effective 1/1/08

Senate Bill 7 took effect yesterday to make it an infraction in the State of California to smoke a cigarette, cigar or pipe in a motor vehicle when a minor (under 18 years old) is in the car, whether the car is moving or stopped.  The fine for this infraction is up to $100 per occurrence.

The law prohibits a cop from stopping you for the sole purpose of determining whether you were breaking this law.  So rest assured, smokers, as long as you are not breaking any other laws, you may be off the hook while blowing fumes in your 9 year old's face. 

The law spells out "to smoke" as having a lighted pipe, cigar, cigarette containing tobacco or any other plant.  Maybe a creative type can figure out a way around this definition!

Another Second-Hand Smoke Law

Since we're talking about second-hand smoke around kids, were you aware that for over 6 years now it has been illegal to smoke or toss cigarette butts within 25 feet of any public playgrounds or "tot lot sandbox" areas? 

The California Health and Safety Code Section 104495 makes such acts illegal and punishable by a $250 fine per infraction.  The law also makes it illegal to intimidate, threaten or retaliate against anyone seeking enforcement of this law. 

There is one exception to this law...you are allowed to smoke on a public sidewalk that is within 25 feet of the playground or sandbox where your kids are happily playing.

From Smoking to Littering

But watch your butt(s).  Section 13002 of the Code makes it a misdemeanor to throw a lighted or unlighted cigarette onto any sidewalk or public location.  The fine ranges from $100 to $1000 per violation.

And California Penal Code Section 374.4 covers all types of littering on public or private property (though generally you're allowed to litter on your own property as long as it isn't out of hand), making it an infraction punishable from $250 up to $3000 per violation.