Post by dej on Feb 12, 2009 3:33:39 GMT -4
According to Noam Levey of the LA Times, here's a summary of who benefits from the stimulus in the latest version of the House & Senate compromise:
Tax credit of $400 for workers making up to $75,000, or $800 for couples making up to $150,000
Middle-income Americans spared from paying higher taxes under the Alternative Minimum Tax.
1st time home buyers get an $8,000 tax credit for homes bought between 1 Jan 2009 and 31 Aug 2009.
Home owners installing energy efficient doors, windows or furnace could get up to $1,500 in tax credits.
College students could get up to $2,500 in tax credits for education related expenses.
Pell Grants are increased by $400.
People getting unemployment get a $25 dollar a week increase, and they can get the benefit for 46 weeks instead of 26 weeks.
For unemployed workers the government will pay 60% of their COBRA health insurance premium for up to 9 months for workers who made up $125,000 a year or couples that made up $250,000 a year.
Food Stamp benefits are increased 13.6%.
Disabled vets, low-income & elderly people getting Supplemental Security income get one extra check for $250.
States get billions to maintain Medicaid, special education & Head Start programs. State layoffs may be curtailed some by this injection of money, plus doctors & hospitals could see faster payment for Medicaid patients.
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Many Democrats have pointed out how Bush's "rebate" checks did nothing for the economy. The income tax credits of $400 to $800, along with the $250 Supplemental Security checks are more of the same, and are just as likely to do nothing for the economy again. I guess this is change???
The 1st time home buyer credit may help get some of the foreclosures off the market, and help builders get rid of some new homes standing empty now, but it's not likely to put many carpenters, electricians, plumbers, etc back to work. Maybe a few can get work fixing up the foreclosures, since this isn't likely to create any other work. It might also help a few loan officers hang on to jobs until Labor Day.
The college student benefits do nothing to stimulate or create work. It's a nice gesture to give a small tax break, but it's all for expenses they would have anyway, ie books, tuition, laptops, etc. There's no extra spending stimulated by this meaning no new jobs either.
It is a good thing the period for unemployment benefits was extended, since it doesn't look like this bill is going to put many people back to work any time soon. I suspect the extra $25 a week isn't really going to generate a lot of extra spending and stimulus, but it was a nice gesture. The extra $100 a month will sure come in handy for that extended unemployment period while we wait for something to happen that will put people back to work, but it doesn't look like this bill will do it.
The article mentions the average unemployment benefit is about $200 a week, now up to about $225 a week. The COBRA premium health insurance for unemployed workers averages about $1,000 a month, with the government now willing to pick up $600 a month of that for 9 months. That means unemployed workers will only have to find about $100 dollars a week out of the $225 to keep up their health insurance. With numbers like that, I really don't foresee a lot of people taking advantage of the new COBRA benefit, so this appears to be the only part of the "stimulus" bill that may actually come in under the budgeted amount.
The billions to the states may go to needed programs, especially Medicaid. (See the COBRA math in the previous paragraph!!) It may help some state government workers keep their jobs since it will states to shift around their program budgets with this cash infusion. But people keeping their jobs maybe for one more year isn't very stimulating for the economy, and it does do much for job creation, unless a few laid-off state workers get their jobs back for at least a year.
I see a lot of window dressing in this summary and some special agendas satisfied, but I don't see much stimulus or job creation. But I'll try to maintain hope. Next year when my wife & I get our $800, I'm sure she will use it to stimulate the economy, so we'll do our part!!
Tax credit of $400 for workers making up to $75,000, or $800 for couples making up to $150,000
Middle-income Americans spared from paying higher taxes under the Alternative Minimum Tax.
1st time home buyers get an $8,000 tax credit for homes bought between 1 Jan 2009 and 31 Aug 2009.
Home owners installing energy efficient doors, windows or furnace could get up to $1,500 in tax credits.
College students could get up to $2,500 in tax credits for education related expenses.
Pell Grants are increased by $400.
People getting unemployment get a $25 dollar a week increase, and they can get the benefit for 46 weeks instead of 26 weeks.
For unemployed workers the government will pay 60% of their COBRA health insurance premium for up to 9 months for workers who made up $125,000 a year or couples that made up $250,000 a year.
Food Stamp benefits are increased 13.6%.
Disabled vets, low-income & elderly people getting Supplemental Security income get one extra check for $250.
States get billions to maintain Medicaid, special education & Head Start programs. State layoffs may be curtailed some by this injection of money, plus doctors & hospitals could see faster payment for Medicaid patients.
----------------------------------------------------------------------------------------------------------------
Many Democrats have pointed out how Bush's "rebate" checks did nothing for the economy. The income tax credits of $400 to $800, along with the $250 Supplemental Security checks are more of the same, and are just as likely to do nothing for the economy again. I guess this is change???
The 1st time home buyer credit may help get some of the foreclosures off the market, and help builders get rid of some new homes standing empty now, but it's not likely to put many carpenters, electricians, plumbers, etc back to work. Maybe a few can get work fixing up the foreclosures, since this isn't likely to create any other work. It might also help a few loan officers hang on to jobs until Labor Day.
The college student benefits do nothing to stimulate or create work. It's a nice gesture to give a small tax break, but it's all for expenses they would have anyway, ie books, tuition, laptops, etc. There's no extra spending stimulated by this meaning no new jobs either.
It is a good thing the period for unemployment benefits was extended, since it doesn't look like this bill is going to put many people back to work any time soon. I suspect the extra $25 a week isn't really going to generate a lot of extra spending and stimulus, but it was a nice gesture. The extra $100 a month will sure come in handy for that extended unemployment period while we wait for something to happen that will put people back to work, but it doesn't look like this bill will do it.
The article mentions the average unemployment benefit is about $200 a week, now up to about $225 a week. The COBRA premium health insurance for unemployed workers averages about $1,000 a month, with the government now willing to pick up $600 a month of that for 9 months. That means unemployed workers will only have to find about $100 dollars a week out of the $225 to keep up their health insurance. With numbers like that, I really don't foresee a lot of people taking advantage of the new COBRA benefit, so this appears to be the only part of the "stimulus" bill that may actually come in under the budgeted amount.
The billions to the states may go to needed programs, especially Medicaid. (See the COBRA math in the previous paragraph!!) It may help some state government workers keep their jobs since it will states to shift around their program budgets with this cash infusion. But people keeping their jobs maybe for one more year isn't very stimulating for the economy, and it does do much for job creation, unless a few laid-off state workers get their jobs back for at least a year.
I see a lot of window dressing in this summary and some special agendas satisfied, but I don't see much stimulus or job creation. But I'll try to maintain hope. Next year when my wife & I get our $800, I'm sure she will use it to stimulate the economy, so we'll do our part!!