Wednesday, February 11, 2009

Lower Tax Cuts May Mean More Instant Payday Loans

Economic stimulus package shrinking

If changes to the economic stimulus package go through, more people might end up needing instant payday loans because they need cash in a hurry.

Yesterday the U.S. Senate passed an $838 billion version of the economic stimulus package, and today Congress is working to lower the cost of the bill. They have pared it down to $789 billion.

Previously in the stimulus package

Previously, the bill contained tax cuts for workers that would add up to $1,000 for couples or $500 for individuals over a year. The cut would work by taking fewer taxes out of each paycheck, usually adding up to about $20 per check.

Tax cuts trimmed

The new, cheaper version of the plan would trim those cuts to $800 for couples and $400 for individuals. As anyone who has ever needed instant payday loans can attest, $100 can make a lot of difference. People who were expecting bigger numbers in their paychecks might end up needing payday loans after all if the tax cuts are lowered to the point of making no difference.

Senators who attended the cost-trimming negotiations have talked about some of the larger items that will still appear in the scaled-down version of the bill. ... click here to read the rest of the article titled "Lower Tax Cuts May Mean More Instant Payday Loans"

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