Business & Finance Renting & Real Estate

How Will the Government Bailout Help the Average Citizen?

    Tax Cuts

    • When the bailout package went through the House of Representatives significant tax breaks were introduced. One of these was a change to the alternative minimum tax, which will reduce the tax obligation of many middle-class taxpayers. If you are one of these people, the bailout helped you by reducing your taxes.

    Interest Rates

    • Since the bailout was paid for on deficit spending, interest rates have risen as the U.S. government borrows more money from the same markets as banks and other lenders. The increased demand increased price.

      This means that if you are in the business of lending money or you just have money in the bank, your interest rates will increase as the market value of money increases.

    Foreclosures

    • Citizens who are looking at foreclosure due to a troubled mortgage or mortgage-backed security may have the crisis averted by the bailout. This does not include all foreclosures, though, but rather only ones which pose a threat to the economy as a whole.



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