The final vote on the bail out passed the last hurdle yesterday.   The total amount of money is $787,000,000,000.  In short terms that amount is $787 Billion Dollars.  In greater terms, we in our life times, will probably never see the end of that debt, nor, probably, will our children.  The positive side of the legislation, we feel, will help the housing market and individuals.  The $7,500  tax credit to first time home buyers that buy homes this year by November 30, 2009 is now $8,000.  Formerly that tax credit was a loan and had to be repaid.  With the new bill, it is forgiven.

 

There is to be a tax incentive for new-car purchases as well

 

Additionally, workers will see more in their paychecks, thanks to a payroll tax credit for 2009 and 2010: 6.2% of income capped at $400 for single people and $800 for couples.  It will be phased out, however, starting at incomes of $75,000 for single people and $150,000 for married couples.  Tax withholding will be adjusted for workers, while self-employed individuals can reduce their estimated tax payments.

 

The bulk of the remaining $787 Billion will be distributed to the states, generally for public work project such as bridges, highways and mass

 transit.   Social services, small businesses and other sectors are also included for a large share.  It should be noted that all of the terms and conditions for this monumental legislation are not yet clear since this

1100 page document has not been scrutinized to determine what is included

 in the fine print.