How Will The Stimulus Package Affect Your Wallet?

Monday, February 16th 2009, 4:50 pm
By: News On 6

By Jeffrey Smith, News On 6

TULSA, OK -- The $787 billion stimulus plan is one of the most expensive pieces of legislation ever passed by Congress.

How is the stimulus package going to affect your pocketbook?

The economic stimulus package goes for the knock-out punch from the start. It provides more than $280 billion in tax breaks over the next two years.

At the Boston Avenue Grill in Tulsa, some workers are talking about the new tax breaks and what it all means.

"Anytime you're going to give me money, I'm definitely going to take it and be happy. But is it going to change anything I do? Probably not. It's not going to change the way I order at a restaurant or buy anything," said Paul Sorrentino, Boston Avenue Grill manager.

Here's how the stimulus package affects you where it counts -- right in the wallet. Millions of American workers will start seeing $8 more in their paychecks starting now -- $8 a week.

"Mean what? Going to lunch that one week on the government? Maybe," said Tom Tate, Certified Public Account.

Accountant Tom Tate says on the macro-level, all that money will pump cash back into businesses. But for the average worker making less than $75,000 a year ...

"Not a whole lot you can buy for $8 a week," said Tate.

Some say a small tax break is best for the economy.

"They aren't going to save that $8, but if it was a large chunk of money coming in, they might put that in a savings account or something," said Michael Dailey, attorney.

The new law makes more than 300 changes to the Internal Revenue Code. So, Tom Tate says the effect is negligible for most workers, but it is good news for accountants.

"The more they change, the more people are looking for advice and help. So, I'm not going to argue. Let them change it," said Tate.

President Obama will sign the stimulus bill into law on Tuesday. Some reports are indicating the tax breaks mean an increase of $13 a week, but because the law will apply retroactively, it averages out to $8.