Tax rebate in the mail? by Ken Mahoney

by Ken Mahoney, RBD The economy has been slowing lately and there are two ways in which the government can help the 'slow down'.

One of the ways is through Monetary policy, that is is raise or lower the discount and fed fund rates. This week, the Federal reserve cut rates by 3/4 of a percent.

Another way the government can help the economy is through Fiscal policy. Fiscal, refers to how the government taxes and spends.

It looks like both Monetary and fiscal policy are now happening:

Democrats, Republicans Reach Tentative Deal on Tax Rebates, Business Breaks to Boost Economy WASHINGTON (AP) -- Democratic and Republican congressional leaders reached a tentative deal Thursday on tax rebates of $300 to $1,200 per household and business tax cuts to jolt the slumping economy. The rebates would be limited to individuals whose income is $75,000 or less and working couples with incomes $150,000 or less.