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Obama Proposes Second Economic Stimulus Package

This article was written by in Taxes. 56 comments.


Click here to understand how Obama’s new 2009 economic stimulus plan might affect you.

Presidential candidate and Senator Barack Obama is calling for a second economic stimulus package to help boost the economy where the first attempt may have failed.

This second stimulus plan, supported by the Democrats in Congress, will provide a $50 billion additional incentive to stimulate the economy targeted to those who have lost jobs or homes, and who are facing cutbacks in state and local governmental services.

The $50 billion would come from the reduction of corporate tax breaks rather than future individual tax payments.

Democrats back Obama’s call for economic stimulus, Reuters, June 10, 2008.

Updated September 17, 2011 and originally published June 17, 2008. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 28 comments… read them below or add one }

avatar Ken

Boy, Talk about buying the vote. And they won’t even be using their own money.

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avatar Kyle

Booooo! For somebody who talks about change a lot, he sure does resort to a lot of old-school tricks to buy votes.

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avatar Luke

I am a little wary about this. Are there going to be anything for people who keep their jobs and pay their mortgage on time?

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avatar kitty

I’d rather take lower capital gain tax. Even if I were getting the rebate, compared to the amount lost in extra capital gains tax and dividends, the rebate would be pocket change.

Not to meniton that lower capital gain and dividend taxes would’ve helped economy a lot more.

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avatar Mike

Cut the corporate tax breaks:

therefore cost of goods goes up
therefore price of item goes up
therefore economic stimulus money goes away.

Circle of life economically speaking. It always flows down hill. Don’t these morons get it. Take a basic economics class.

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avatar PT

Don’t we already have Federal Unemployment Assistance?

I agree with Kyle…nothing new from the Dems…pandering to the whiners with their hands out.

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avatar David B

Step 1: Punish productive members of society by taking money that they earned through their own hard work and ingenuity.

Step 2: Give stolen money to people who did not earn it, damaging economy, leading to recession.

Step 3: Use recession as an excuse to take more money from those who earned it and give it to those who did not.

Step 4: Repeat endlessly until Communism is the norm.

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avatar Mahogany

I am very grateful that someone is trying to help most people who are facing the struggle in this crisis. From most of the comments I have seen posted most of you should be ashamed to speak badly about the Presumptive President Candidate Barack Obama. I applaud him for helping Us Americans. And most of you who haven’t lost your homes and your jobs that are fine and still questioning wheres my stimulous should be ashamed when there’s people who needs it more than you that are struggling!!! God Bless you!!! Barack Obama I applaud you for your accomplishments and hard work towards america. I defitnely see Change.
And I am very grateful unlike others

God Bless….

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avatar Mahogany

David you definitely should be ashamed of your comments

Reason: 1 The Productive members are not being punished. If you have earned money A plus for you. There was times where money was taken out of my taxes also. And, there is times where I have lost my job and my home. My theory is it’s just selfish of you to think of yourself and not others. And thats why this world is ending now because we have too many selfish inconsiderate people like you.

Reason: 2 It is definitely not stolen money you know better than that. And definitely not damaging the economy. This war and gas prices etc… is damaging the economy. Be careful what you as I wish the best for you. But, what goes around comes around. It may be you one day that may lose your job and your home. Everything is not guaranteed in life……..

God Bless you David

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avatar Patrick

Gas prices are a result from everyone wanting a false ceiling placed on gas prices. We wanted it and we wanted it cheap. Now we are paying big. Basically people wanted a hand-out while they drove their SUV’s while hauling their boats, etc, etc.

To take the majority of the money from those who earn more to give it those who didn’t is called stealing but the Democrats have never seen it that way. When the top 5% pay 95% of the taxes… wow…

It is very telling when I read that Obama’s inspiration is Karl Marx…

For the record, my household is a two-income home in the $50,000 range… so his plans would benefit me and I’m still against them. Lower spending, not taxes. Make the money they take from us count for something.

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avatar Sarah

Whether you approve or disapprove of this plan, you have to give Obama credit for actually funding this proposal. The last 7 years of “borrow and spend” have hurt America very badly, and we are facing a future crisis. Please check out the chart titled “Current Trends Are Not Sustainable” on page 3 of “The Nation by the Numbers: A Citizen’s Guide A Summary of the FY 2007 Financial Report of the U.S. Government”

http://www.gao.gov/financial/fy2007/guide.pdf

We don’t just print up new money to finance our deficit, we BORROW it from other nations, and we have to pay COMPOUND INTEREST. The green and white slashed part of the bars is Net Interest.

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avatar David B

@Mahogany – I don’t see why I should “be ashamed.” I have an opinion, as do you.

First of all, the words presumptive, us, change, etc. do not need to be capitalized. This is true even if the blessed Messiah has uttered them in all of his glory.

“There was times when money was taken out of my taxes also.” Aside from the interesting verb tense, I’m not sure what you’re talking about. You had money taken out of your taxes? I’m gathering that you don’t pay taxes.

“The Productive members are not being punished.” Again, not sure why the capitalization, but yes we are. If you earn more, the government takes more. A bureaucracy decides that you do not need all of that, and takes it, coercively. Stealing, if you will. Recognizing that somebody coercively taking money that I earned for myself with my time is stealing does not make me selfish or mean that I don’t think of others. I am thinking of others who have worked hard and contributed great things, who are also being punished for it, for the sake of many people who haven’t worked as hard. Additionally, I am an active volunteer and willfully donate money to charities that I am involved with (who spend it more efficiently than the government). I could give more if the government didn’t take so much.

“And definitely not damaging the economy.” Ok, I don’t mean to harp, but I can’t seem to find a single sentence that has a readable sentence structure. Anyway, yes it is. It discourages those who produce. It’s that simple.

@Sarah – How is he funding his proposal? Increasing corporate taxes increases prices for the consumer. Over and over again, history has shown that “soak the rich” type tax policies decrease tax revenue.

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avatar Sarah

David B wrote
“How is he funding his proposal? Increasing corporate taxes increases prices for the consumer. Over and over again, history has shown that “soak the rich” type tax policies decrease tax revenue.”

Obama plans on doing funding this by reducing corporate tax breaks, I thought Flexo’s post made that clear.

You make it sound like the poor little corporations are some kind of innocent victim, but while gas prices are soaring, and small businesses are going under, oil companies are making all-time record profits. If the price of gas simply reflects the rise in the cost of crude, then where are these record breaking profits coming from? The eight closed stores I passed today don’t seem like they were making big money.

As to lowering taxes to generate increased tax revenue, don’t believe it. The numbers we get from the government are created in a non-standard accounting system that you and I would be put in jail for using.
http://www.usatoday.com/news/washington/2006-08-02-deficit-usat_x.htm

In 2005, when the new Bankruptcy laws were passed, the Republican controlled congress was foaming at the mouth over “irresponsible” and “lazy” Americans who ran up debt and didn’t want to pay it back. Now look at the crushing debt this “borrow and spend” congress have placed us in.

We read Consumerism Commentary, and I think we all agree running up credit card debt and refinancing our homes well beyond our ability to pay is flat out DUMB. Can anyone here tell me a way to get away with borrowing money with compound interest and avoid paying for it one way or another?

That is what our government has done, and if you read my link to the Government Accountability Office, you would have seen it. With current trends, our children in 2080 will be paying more in interest payments for today’s deficit than for all other government expenses combined. That is my point. I tried not to suggest that Obama’s idea was good or bad. I would have to know more details before I could have an opinion. But here is a politician who at least tries to balance the books, and that is lacking in most government today.

FYI, the Wold Bank currently is selling about 27 Billion dollars (a little over 2 months in Iraq) of United States debt. I would rather that a Consumerism Commentary reader bought this than some islamic fundamentalist state.

http://treasury.worldbank.org/Services/Capital%2bMarkets/Debt+Products/List+of+Recent+WB+Bond+Issuance.html

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avatar Porsha

First off i would like to say that i think the second round of check should hit the mail as of yesterday there are to many ppl losing homes transportation and what ever else u can think of…i also would like to comment on the fact that when all this first surfaced everyone was getting a check no matter what single 600 married 1200 and 300 for every kid and those who made less then so odd amount got 300.. then when it came to light or shall i say the truth came out if u owed u would get minus what u owe and then u only get the full amount if you reached some sort of tax liablity… i think all this was a big crock of shhhhhhhhhhhhh… cause to be honest i have never owed taxes in my life until the week befor my check was to come then it was u owe this u owe that and all this other bullish………….. i honsetly think if they want to help ppl out give them there taxes all over again.. without all the red tape… cause there are getting there money off the top but they are claiming to be trying to help the economy.. but they are taking out of the mouths of the ppl who really need to money… if u are one of those who is well off enough to not need the extra money do look down on those who do… the whole situation over the las 8 yrs is @%*! up… They pumped us all up to get let down…..

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avatar Letitia

I just want to say this I am a single mother who lost my job in August of 2006. I have been looking for a job for almost 2 years and I am still unemployed .I have been on unemployment twice and I just received a notice about finally getting extended umemployment where was this 2 years ago. And the job market does not seem to get any better it just keep getting worse. Yes I was glad to get my rebate check it helped a lot. I would like to get a second rebate check if possible it they want to give us one. But my point is don’t look a gift horse in the mouth if the government wants to give out more money I can accept that. The only other way to supplement my income when my unemployment runs out is to take on contract assignments when I can get them so I am looking forward to the day when I can finally say I got a job offer from my interviews.

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avatar law lady

Personally I believe the idea may not be such a bad suggestion. Yes the economy does go up a few cents does it really matter the way the economy is rising in dollars. This is an idea for those who need help to grow in get back on track because the economy and gov’t once again has failed to fullfill its promise to uphold a prominent nation. So the wealth you may have may do you some justice but what about the others struggling just to make ends meet. Its not all about americas middle class citizens.

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avatar Patrick

Well another check will not certainly not help inflation. Our dollar is weak enough as it is. We are being beat not at war but financially as other countries are buying our companies. The government was never there to support people. It was created to defend us from foreign invaders. The fact that the Federal government has become so entrenched in our infrastructure is because to many people lost sight of that fact and wanted handouts.

Most of the people that I know that are struggling are doing so because they run their budget the same way we allow our government. I know I sound harsh but the bleeding has to stop somewhere. And I don’t accept that “our economy is messed up so what’s another 93 billion”. That’s the same philosophy that gets people in trouble. “I lost my job so I might as well spend”. “I owe so much credit, what’s another $1000″.

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avatar Lena

I think everyone in this blog should read Taylor Caldwell’s “The Devil’s Advocate” and then see if the obvious is apparent.

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avatar Nmyownworld

Every body just need to shut up and vote this is an argument no one can win everyone has thier own views!!!!

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avatar blondy

i think the ones who think some of us who do not deserve a tax breake should were are shoes for awile try working your but offf every day to just live pay check to pay check and feed all your kids i am a member of a faimly with eight children try telling me we dont need a break

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avatar Patrick

Whether you deserve a tax break or not is irrelevant. The country is spending on credit the same as it’s citizens. We need to reduce spending and get back to basics of government. I live paycheck to paycheck the same as most people I know. My savings are currently low but I am making ends meet, for now.

Why do you assume that someone who doesn’t believe in rampant spending doesn’t understand the shoes you walk? If I believe in small government when times are grand, I’ll believe in small government when times are tough. I know this for a fact because, well, we are living it, aren’t we? Cutting back on paying the government “credit bill” while at the same time spending more money the people doesn’t have, won’t help in any way shape or form.

I know you won’t see my point of view or anyone else’s here who disagrees, but I have to try. It’s not that I don’t think you deserve a break. We all do. But what you deserve more is “better”. That’s it. You deserve better. Handing you $1000 will only serve you in the short term. Some of us are just trying to be more far-sighted. I apologize if I offend. It isn’t my intent.

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avatar Someone Who Care

I agree, It’s been tough to pay my mortgage but my husband and I are trying and paying on time. We need the Stimulus package just as much as anyone else and we do work and support our children and it has been very tough!

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avatar Michele

If they do another round of checks it should be before Christmas i bet 90% of the people would use it for Chrisatmas shopping . This will help the stores get threw the holiday season and the stores will hire seasonall workers, if not you will see stores closing like TARGET, JC PENNEY ETC ETC

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avatar tweedles72

I agree. It would be nice to get the stimulus checks around the Holidays. I have 4 kids and my husband works construction. due to the declining economy last year, my husband and I couldn’t afford to get xmas. Our xmas gifts to our kids was waking up that morning saying “Sorry no presents, but we have a roof over our heads.” And one of my kids is autistic, have you ever explained no gifts to an autistic child when he doesn’t understand money in the first place? My husband works damn hard every day. He works in the blistering 120 heat in the summer times and works in the 45 cold in the winter. We need the break. For those who sit in you comfy chairs behind desks, remember this: “If it wasn’t for people like my husband busting their humps every day you wouldn’t have your cozy office with a/c and heat.” So before you look down you noses at people like us, think about how all the streets, freeways, highways, and commercial buildings get built, powered, and what not. You complain about the stimulus because it takes taxes from you, In reality it takes from the working class every day. When you checks starts out at 900 dollars and after taxes it’s 780, so don’t tell me how the government steals from you to aid our type. We pay throught the year just like you…..

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avatar Patrick

Look down at people like you? I’m not even sure what that comment is to reflect. My wife and I work 50 hours a week each to feed our 3 children and pay our mortgage. She works on the factory floor and I work in the accounting dept (in that nice cooshy chair and A/C). Does that mean that I can’t have an opinion? Does that mean that some how I am affected by the economy as much as you? I’m not complaining about the stimulus beause it takes away taxes from me. I’m complaining about the stimulus because it’s money the government DOES NOT HAVE. Living beyond your means is the surest way to financial ruin. It is true in personal economics as well as government economics. Why can’t any one understand that?

Since you seem to want to make this personal to the commenters here, let me ask you a personal question. Why do you want to leave a legacy of debt for your children to pay after you’re gone? How can you not see that the stimulus checks are not going to turn around the economy or help you in the long term?

For the record, my wife’s weekly gross is $517. Her take-home is $385. My bi-monthly is $1500 and my take-home is about $1000. We make about $5k a month and bring home $3540. We both work our tails off for what we have and I don’t look down my nose at anyone.

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avatar David Dzidzikashvili

Obama’s stimulus plan should also envision changing regulations & economic policies to have short-term & long-term effects on unemployment, middle-class and the market stability. Strengthening the middle class and creating more job opportunities should be the primary objective of the package, rather than handing the blank check to the Wall Street and failed big corporations.

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avatar Vandee

First Of All, talking about giving this and giving that, PAY the people already!!!! Give all the money you are about to blow and give it to the people. 800 billion between the population of the United States ONLY equals 2,200 dollars per every Man, Woman, & Child. That makes a lot more sense than 1,300 dollars total for a family of three. That paid my bills and put food on the table for a week. To All, I’m pretty damn confident the first three words of the constitution state, “We The People…”

Ready 4 CHANGE!!
Vandee

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avatar Mahogany hater!

Wake up ans smell the coffee Mahogany! Read between the lines and you’ll see the so called stimulus …will not do anything to assist those of us who have been left without a job, a house or any transportation to find a job…How about that.

Your damm straight I’m asking where the F….is my check!

I’m with David B on this…..

I know I have earned my share of it….Can you say the same miss congeniality?

Miss Mahogany…get a life.

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