In an effort to boost the economy, Congress and the White House have rolled out a tax stimulus package. The plan calls for more than 117 million families to receive tax rebates of up to $1,200. These rebate checks would go to low-income and middle-class workers, including those who pay payroll taxes but not income taxes. Families with children would get a $300 credit for each child. The rebates would be phased out for those families making more than $150,000 and would not be given to families earning more than $187,000.

In addition to the tax rebates, the stimulus plan would offer some relief for homeowners who otherwise might lose their houses due to resetting subprime mortgages. The plan also called for expanded business depreciation by 50% on new capital equipment. Truthfully, this is the fastest way to help the economy immediately. Many economists say that the business tax cuts are too small and predicted that they will be ineffective. But they're forgetting that this is an election year, and Congress wants to give their constituents a check.

"This bill reflects our principles. It is robust, it is pro-growth, it stimulates business investment and it puts money into the hands of American consumers," President Bush said.

Though there was originally hope that the checks would come out by May, August is looking like a more realistic timeframe. The IRS will most likely be bogged down in April and most likely won't even get around to processing the rebates till early May. Once you allow time for mailing (an estimated 8 to 10 weeks), we're looking at a much later delivery date. I'll tell you what, this isn't necessarily a bad thing; at least not as far as Presidential candidates are concerned. The closer these stimulus package checks arrive to Election Day, the better it will be for the incumbent politicians.

Overall, there's a lot of stimulus coming down the pike. Will this help us avoid a recession? Well, probably not in time for states like California, Florida or Michigan that are already in a recession. With unemployment claims rising fast, the Fed's famous soft landing seems headed for a hard landing, but I'll go out on a limb and say that the economy will avoid an "official recession" of two consecutive quarters of negative economic growth. However, it's going to be a close call!