I’m sure you’ve heard by now that the House of Representatives passed Obama’s economic stimulus plan. Not a single Republican voted for the plan which didn’t matter as Democrats hold a vast majority in the House. Senate still has to pass the bill, which I suspect will end up changing a lot as the Democratic majority is a lot slimmer in Senate. (In fact I suspect the House Democrats padded the bill knowing it would be trimmed by Senate).
The plan comprises $604 billion in spending and $212 billion in tax cuts over the next ten years, though most of the spending will take place over the next three years.
Here are some of the details of the House plan:
Tax Relief – Tax cuts of $212 billion including a tax credit of $500 per worker and $1000 per couple. This phases out at incomes of $75,000 and $150,000 respectively.
Out of Work Benefits – $38 billion to extend unemployment benefits an additional 11 months, provide job training, and add an additional $25/week in unemployment benefits. Another $20 billion would go toward increasing food stamp benefits and $7.5 billion for Supplemental Security Income.
Health Care - Health care insurance would be subsidized with $40 billion for unemployed; $87 billion to help states pay for Medicaid costs; $20 billion to modernize health care information technology systems; preventive care gets $4 billion; $1.5 billion for community healthcare centers; $420 million to fight avarian flu; and $335 to combat AIDS, STD’s, and tuberculosis.
Energy – About $50 billion for projects ranging from advanced car batteries to a Clean Coal Power initiative to modernizing the electric power grid to making federal building more energy efficient.
Education – Funding would increase by $92 billion with about $17 billion for Pell grants. $20 billion would renovate public schools. About $30 billion would go to elementary and secondary school programs.
Technology – About $3 billion to be spent on expanding broadband internet service in rural areas. Another $3 billion in grants for science and technology research.
Transportation and Urban Development – $30 billion towards highway construction; $11.1 billion in HUD housing assistance; $5.3 billion as state grants for community development.
It will be interesting to see how the plan finally works itself out after Senate has their way with it. If it goes through we could see it signed in mid-February.
What do you think so far?
Sources:
A look inside Obama’s Economic Stimulus plan
American Recovery and Reinvestment Act of 2009
Some other article on the economic stimulus plan:
Inside the American Recovery and Reinvestment Plan: A Whole Lotta Economic Stimulus
American Bailout: $1 Million a Day for 2,260 Years
House Passes Economic Stimulus Bill: I am not Amused
The Orange Savings Account. Great rates, no fees, no minimums.
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I would like to see the “tax cut” money go toward actual tax cuts and not another stimulus check like last year. Neil Cavuto said the other day that a one-shot deal like that does not do enough to alter peoples’ spending behaviors; knowing that you are going to be bringing home more money each paycheck for an extended amount of time is more effective in changing how people spend their money. Last year we saved nearly all our stimulus money. If we got an actual tax cut we would still put money toward savings, but things like a summer vacation and other spendy activities would become more of a reality for my family.
Hannah’s last blog post..Ascaso Espresso Machine Information
@ Hannah – So far as I know there is no plan for another stimulus plan check. But who knows? I agree that it won’t do anything though.
@ Abigail – I like the ideas behind parts of the plan. We need some kind of answer to the health care problems our country has and increased unemployment benefits at a time when unemployment is at it’s highest in years will help many get by. With broadband, I think it could help grow some online businesses and make some people better connected, perhaps educated. Other countries, like Japan, are supposedly light years ahead of us technologically in their cities.
@ Miranda – Yeah, I guess you are right, there’s already a lot that’s been spent and there will be a lot more before it’s all over. Think our grandkids will be able to pay this off?
@ Janine – I hear you. Social welfare is meant to help but unfortunately too many take advantage of it. On the one hand you don’t want to be cruel to those who need some help to get on their feet but at the same time I don’t like having my taxes go to people who “game” the system. But I don’t have the answer either.
@ HMLR – It was a bit surprising to see how united the Republicans were. The two party system is a bit a a joke in that neither party is all black and white. They each cross over. They do need to work together but then again I’m not sure how much the Democrats worried about what Republicans wanted. The Dems knew they had the majority anyway.
Well, I’m overjoyed at the prospect of subsidized health care. My husband can’t be without health insurance and they just raised the rates to $502/month!
Also glad that he is intending to increase unemployment benefits. I think at the current rates of unemployment, it’s kind of a given. But my husband’s time is up as of April, and he’s just now (five months since the application) actually getting somewhere with the agency that will help him find out what kind of work he can feasibly do around his health conditions.
I definitely support the energy (electric car would be great), education and transportation/housing. In Seattle, they no longer even accept candidates for the WAITING LIST for Section 8 housing. It’s been that way for the last two years, at least.
I’m really not sure why the broadband upgrades are so necessary, so I am a little iffy about that. But science grants are definitely good.
I also agree with Hannah that we should NOT get another stimulus payment. I mean, I’ll definitely take any money that comes, but I just can’t see another $300 doing much at this rate. Most people would use it to pay basic bills, so it definitely wouldn’t stimulate the economy.
And, on a purely “grammar geek” note, I just wanted to say it’s sooooo wonderful that you used “comprise” correctly! It’s my pet peeve. (That and “each other” vs “one another.”)
Abigail’s last blog post..A good dillyeo…
Unfortunately, the Senate bill is already more expensive — running $900 billion. But maybe they will trim that version.
I do like some of the things in the package, but stuff that does the most good — like infrastructure and science and energy and education. These are things that take the long view, and that can provide some jobs. But there’s a lot of pointless fluff.
But, really, we’re all getting riled up about this nearly $1 trillion spending spree, we’re forgetting something very important: Most of the more than $7 trillion spent on economic stimulus since December 2007 (not including this bill) has not been approved in large packages. So while we cavil at this number, the real numbers are much larger. And by the time more “emergency loans” and other monies are approved and spent, we’ll find we’ve been millioned and billioned into much larger deficits.
Miranda’s last blog post..House Passes Economic Stimulus Bill: I Am Not Amused
And thanks for including a link to me
Miranda’s last blog post..House Passes Economic Stimulus Bill: I Am Not Amused
I like everything about the plan except the healthcare.
I work as a labor and delivery nurse and the population I work with have no jobs and a million kids. They live off the government and pay for nothing other than their drug habits. The kids grow up without stability only to go on and do the same thing.
I dont have a solution to this because I think it goes with how you are raised. But giving them more and more is not the solution. Obama and a lot of other people i believe are oblivious to the fact that these people exist. They dont want jobs and keep just having kids so they get more and more money….
I’m not smart enough to know whether the stimulus bill, as proposed, will get us out of the mess we are in. I do believe the republicans are searching for any way they can to oppose this legislation because it is their only political move to make in case the bill does not bring us out of this “recession/depression” that we find ourselves. As usual, the republicans are not really interested in a bi-partisan solution. They only want tax breaks. Where has that gotten us in the last 8 years?
It would be nice if the tax cuts went to something useful, and again not another tax stimulus! Practically all of last years stimulus money DIDNT get spent. An actual tax cut would mean some more money for practical family things, and perhaps even more towards savings.
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