Updated March 20, 2009: The stimulus plan has become a law, and we’ve rounded up the many ways you can benefit.
President-Elect Barack Obama pitched his economic stimulus proposal to Congress earlier this week. Here are the main points.
- The total cost is $775 billion over two years.
- Tax cuts and breaks will account for $300 billion of that total, including a $500 payroll tax credit, tax breaks for businesses. Companies would be able to write off losses in 2008 and 2009 and other expenses up to $250,000 in 2009 and 2010.
- The proposal would create 3 million new jobs, 2.5 million of which will be private sector jobs.
- Obama is calling for no earmarks to be added to the stimulus bill.
- Stimulus funds will be used to invest in infrastructure around the country, including transportation, roads, healthcare, and education.
What do you think of Obama’s plans? Is this level of spending necessary to pull the United States out of a recession? Are there long-term consequences to running such a high budget deficit?
Updated March 24, 2017 and originally published January 7, 2009.