In order to avoid recession, President George Bush proposes a tax rebate for low and middle income Americans. At this point, there is an ongoing argument whether the rebate should be given to all Americans or only to families with a combined annual income of US$100,000. Bush is expected to elaborate on this plan during his State of the Union Address on January 28, 2008.

At this point, democrats are working on a similar proposal and intends to meet with Bush in order to speed up the drafting of the final measure. All this went full steam when last week’s reports showed that manufacturing contracted and unemployment jumped in December. Hopefully, the measure will work and lead to more rebates and tax cuts for the entire US population. There’s no better news than the thought that none of your income will go to taxes.