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PRESIDENT SIGNS ECONOMIC STIMULUS BILL; TERRITORY COULD SEE INFUSION OF $30 MILLION 

President George Bush signed into law this afternoon a $168 billion stimulus bill which guarantees that Virgin Islanders will receive the same stimulus rebates as their mainland counterparts with the Federal Government picking up the full cost. Just back from a round of meetings in New York, Gov. John P. de Jongh Jr. thanked the President for his decisive action in proposing a national economic recovery program, stating that the law passed by the Congress will provide significant cash assistance to individual Virgin Islands taxpayers totaling over $30 million, while helping to pump up the local economy at a time of national economic slowdown. 

Under the stimulus law, Virgin Islands taxpayers will receive rebates of up to $600 per taxpayer and up to $1200 for couples filing jointly. In addition, taxpayers will also receive rebates of $300 for each of their dependent children. The rebates would phase out for individual taxpayers earning over $75,000 and for couples earning over $150,000. Taxpayers who had at least $3,000 of earned income but who earned too little to pay income taxes will receive $300 per individual and $600 for couples. Such taxpayers will also receive $300 for each dependent child. 

DeJongh said that rebates will also be granted to disabled veterans, their widows and senior citizens living only on Social Security benefits. 

According to Government House, the Bureau of Internal Revenue will issue rebate checks to Virgin Islanders based on their 2007 tax returns which are due on April 15th. 

The U.S. Treasury Department will then reimburse the Territory once a final tally of the cost is submitted by the local Government. 

“This law will provide a tremendous boost to our local economy by providing millions of dollars in cash rebates for our hard-pressed taxpayers at no cost to our local Treasury,” deJongh said. Under the rebate provisions, a V.I. family of four could receive cash payments of up to $1,800 which could be used to pay bills and for needed consumer goods.

The reimbursement provision is critical to the success of the rebate program in the Virgin Islands. Without it, the Territory would be forced to either reduce spending on essential public services in order to pay for the cost of the rebates or petition Congress to opt out of the rebate program altogether, deJongh added.

Under the Territory’s mirror income tax system, the Virgin Islands would be required, without the special reimbursement rule, to pay the entire cost of the rebates, thus completely negating any stimulus effect on the local economy.

DeJongh started working to ensure inclusion of the Virgin Islands in the federal stimulus plan immediately after President Bush called on Congress last month to enact temporary and targeted tax relief to help the country avoid recession. The Chief Executive sent letters to the House and Senate leadership, the tax-writing committees of both Houses, and to the Secretary of the Interior. He was also in touch with Congressional leaders by telephone and coordinated his efforts with Delegate Donna Christensen. “I am pleased that Congress responded favorably, and the President signed into law, a powerful economic recovery program which fully includes the Virgin Islands and treats our taxpayers fairly.”

DeJongh thanked Speaker of the House Nancy Pelosi (D-California), House Minority Leader John Boehner (R-Ohio) and Chairman of the House Ways and Means Committee Charles Rangel (D-New York) for their support for the special V.I. rule. The Chief Executive also thanked Delegate Donna Christensen for her cooperation and efforts. 

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