Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Some helpful info for those who need it or want it. About stimulus.

Posted by on Jan. 27, 2009 at 8:29 PM
  • 32 Replies

The plan by Obama and congressional Democrats to revive the economy is taking shape. Here's what we know so far.

You've probably noticed: The Obama administration and Congress are talking about spending an unprecedented sum of money to try to revive the economy.

President Obama and House Democrats laid down the marker with an $825 billion package of spending and tax cuts.

More from CNNMoney.com:

Talkback to CNNMoney: How Is the Economy Affecting You?

Unemployment Sweeps Nation

Bank Bailout Could Cost $4 Trillion

Dozens of proposals. Hundreds of pages of legislation. Billions of dollars.

What are some of the headline proposals, and what is the debate all about? The legislation is a work in progress, but here is an overview.

Infrastructure

The case for: By investing in renewable energy, health care, education and modern construction projects, the Obama administration expects to create between 3 million and 4 million jobs and address key sustainability issues.

The case against: Opponents argue the spending will lead to a rapidly increasing and unsustainable deficit. They also say that a majority of infrastructure projects will take too long to implement.

Construction projects: $90 billion. Fund the rebuilding of crumbling roads and bridges, build clean water and flood control mechanisms and provide funding for mass transit systems.

Education: $142 billion. Rebuild thousands of schools by modernizing classrooms, labs and libraries. The plan would also increase funding for Pell Grants.

Renewable energy: $54 billion. Double production of alternative energy in the next three years. Weatherize low-income homes, modernize 75% of federal buildings and update the nation's electrical grid with a new, cost-efficient "smart" grid.

Health care records: $20 billion. Modernize the health care system by computerizing all of the nations' medical records in the next five years.

Science, research and technology: $16 billion. Invest in science facilities, research and instrumentation to create new industries, new jobs and medical breakthroughs. Expand broadband Internet access in rural and underserved areas.

State Relief

The case for: As states face budget shortfalls, Obama's plan seeks to help states pay for Medicaid and unemployment benefits. State fiscal relief will be allocated to prevent increases in state and local taxes.

obama_stimulus_plan.gif

The case against: Opponents say the bill should focus on job creation that will make an immediate impact the economy. Republicans have specifically criticized a provision that would expand a government matching program for states that provide abortion and contraceptive funding through Medicaid. A Democratic official told CNN the House Democratic leaders are planning to remove the provision.

Medicaid: $87 billion. Increase Federal Medicaid Assistance Percentage so states do not have to cut eligibility for Medicaid due to budget shortfalls.

Law enforcement: $4 billion for states and municipality funding for law enforcement.

Safety Net

The case for: Obama proposed temporary programs to protect those most vulnerable to the effects of the recession.

The case against: As with state budget relief, opponents say the bill is too big and should simply aim to create new jobs. Some lawmakers have said some of the "safety net" spending provisions are wasteful, and many have called the bill unfocused.

Unemployment benefits: $43 billion. Extend through December 2009 emergency unemployment insurance assistance to states. Increase weekly unemployment benefits by $25, and provide incentives for states to expand unemployment coverage.

Cobra: $39 billion. Tax credit for recently laid-off employees to help pay for discounted health care. Obama estimates the plan will help 8.5 million people who recently lost their jobs.

Feeding the hungry: $20 billion. Increase food stamp benefits by 13%, and provide support for food banks, school lunch programs and WIC.

Tax Cuts for Individuals

The case for: The president proposed the so-called "Make Work Pay Credit" as part of an effort to spend at least 75% of the package in the first 18 months after its passage. Obama hopes that fast-spending provisions like tax cuts will quickly help low- and middle-income workers in need of spending money.

More from Yahoo! Finance:

What to Do if Uncle Sam Takes Over Your Bank

The Case for Credit Cards in a Cash-First Era

How the Stimulus Will Affect You

Visit the Banking & Budgeting Center

The case against: Opponents say the size tax cuts do not go far enough and on the whole don't make up a big enough portion of the entire package. Furthermore, they oppose giving tax breaks to people who do not pay taxes.

Middle-class tax cut: $145 billion. Tax cut amounting to $500 a year for individuals and $1,000 for couples. The full credit would be limited to those making $75,000 or less ($150,000 or less for workers filing joint returns).

Low-income tax cut: $5 billion. Expand the Earned Income Tax Credit, which is a refundable credit for low-income workers. Furthermore, the Make Work Pay Credit would be refundable, meaning that even tax filers without any tax liability -- typically very low-income workers -- would receive one.

Child tax credit: $18 billion. Temporary increase in the amount of the child tax credit that would be refundable.

Tax Cuts for Businesses

The case for: In an attempt to get money out quickly to low- and middle-income workers, the president has pushed for tax cuts for certain individuals.

The case against: Opponents say too small of a percentage of the total package -- 2.7% -- goes to small businesses. They also say that much of the proposed tax relief essentially amounts to spending, due to the provisions Democrats placed on the tax credits.

Small business write-offs: Obama would increase the amount of expenses small businesses can write off to $250,000 in 2009 and 2010 from the current $125,000 level.

Tax cuts for companies suffering losses: $17 billion over 10 years. Obama would temporarily broaden the "net-operating loss carryback" to five years, up from two years currently. The provision would let companies apply their 2008 and 2009 losses to past and future tax bills so they can get money back on taxes they've already paid or would otherwise have to pay.

Copyrighted, CNNMoney. All Rights Reserved.

Juggalette Mommy

by on Jan. 27, 2009 at 8:29 PM
Add your quick reply below:
You must be a member to reply to this post.
Replies (1-10):
Ethansmom85
by on Jan. 27, 2009 at 8:31 PM

yeah...pointless i think to have another stimulus...you end up spending it on bills and not on shopping....but have you heard what the basis is for how much you will get or is it the same as last time?

prettypaws
by on Jan. 27, 2009 at 8:32 PM

 I realize that this is a lot of money... but I think it would be money well spent and I do hope they pass it.

 I don't see anyone else throwing out any better ideas at this point.


prettypaws
by on Jan. 27, 2009 at 8:34 PM

 My understanding is that it's not going to be a sum of money sent to the American people. It is going to be spend on creating jobs and such..... You should read the above article. It is very informative.

Quoting Ethansmom85:

yeah...pointless i think to have another stimulus...you end up spending it on bills and not on shopping....but have you heard what the basis is for how much you will get or is it the same as last time?



harvgal04
by on Jan. 27, 2009 at 8:34 PM

I agree.

Quoting prettypaws:

 I realize that this is a lot of money... but I think it would be money well spent and I do hope they pass it.

 I don't see anyone else throwing out any better ideas at this point.


sweetiepie120
by on Jan. 27, 2009 at 8:34 PM

I heard it was going to be more than last time.   does any one know how much it will be

Ethansmom85
by on Jan. 27, 2009 at 8:35 PM

well accordin to the pp we arent getting any of it.

Quoting sweetiepie120:

I heard it was going to be more than last time.   does any one know how much it will be


prettypaws
by on Jan. 27, 2009 at 8:36 PM

 Again I don't think its going to be any money sent to us. Its going to be spent of creating jobs ect....

Quoting sweetiepie120:

I heard it was going to be more than last time.   does any one know how much it will be



Dzyre1115
by Desiree` on Jan. 27, 2009 at 8:36 PM

I know what it entails, but a huge portion of it has nothing to do with jump starting the economy which is the point of a stimulus.  A lot of pork barrel BS.........

stefvan
by on Jan. 27, 2009 at 8:36 PM

This isn't a stimulus to us like last time.  It's first off, the bail out and second creating infrastructure jobs.

Quoting sweetiepie120:

I heard it was going to be more than last time.   does any one know how much it will be


Ethansmom85
by on Jan. 27, 2009 at 8:37 PM

yea ill believe it when i see it.

Quoting Dzyre1115:

I know what it entails, but a huge portion of it has nothing to do with jump starting the economy which is the point of a stimulus.  A lot of pork barrel BS.........


Add your quick reply below:
You must be a member to reply to this post.
Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)