As an example of how money in one grouping gets divided, the following shows what is being allotted for tax relief:
$116 billion: Payroll tax credit of $400 per worker and $800 per couple in both 2009 and 2010 (American, 2010).
$70 billion: Alternative minimum tax: a one year increase in AMT floor to $70,950 for joint filers for 2009 (American, 2010).
$15 billion: Expansion of the child tax credit: A $1,000 credit to a larger number of families (including those that do not make enough money to pay taxes) (American, 2010).
$14 billion: Expanded college credit to provide a $2,500 tax credit for college tuition and related expenses for 2009 and 2010 (American, 2010).
$6.6 billion: Homebuyer tax credit: $8,000 refundable credit for all homes bought between 1/1/2009 and 12/1/2009 and repayment provision repealed for homes purchased in 2009 and held more than three years. It only applies to first-time homebuyers, and was extended through April of 2010 (American, 2010).
$4.7 billion: Excluding from taxation the first $2,400 a person receives for unemployment benefits in 2009 (American, 2010).
$4.7 billion: Expanded earned income credit -- which provides money to low-income workers -- for families that have at least three children (American, 2010).
$4.3 billion: Home energy credit to provide expanded credit to homeowners who make homes more energy-efficient in 2009 and 2010. Homeowners can recoup 30% of their cost up to $1,500 for numerous projects like installing energy-efficient windows, doors, air conditioners, and furnaces (American, 2010).
$1.7 billion: Deduction of sales tax from vehicle purchases, but not interest payments (American, 2010).
As can be seen, the breakdown of what goes into each section is very specific. The tax relief section is not the only one that has a lot of specifics. Each section of the stimulus plan clearly spells out how much money is to go for a certain area, and then each area is broken down into specifics. That works out very well for anyone who wants to see where the money is going, but there are still people who do not feel as though the money went to the right places. That is to be expected with any financial plan.
Developments
Economists have been divided as to whether they like the stimulus plan or not (Economists, 2009; Gross, 2009; Obama, 2009; Krugman, 2008). Some of them feel that it is a valuable way to bring more jobs and more money to the overall economy (Gross, 2009; Obama, 2009; Krugman, 2008). Others think that the plan does not address the issues that are really the most important to the American people and the struggles that they are facing right now (Economists, 2009). In other words, these economists feel as though the money that is being spent - and how that money is being spent - is not something that is going to be workable in the long run (Economists, 2009). There are indications that the plan will actually cause the GDP to decrease over time, which would lower the net worth of the country (Gross, 2009; Krugman, 2008). This is, of course, the opposite affect from what the plan was supposed to have. Only time will let whether this is the case.
There have been some developments from the plan, however, including a forecast that 2.5 million jobs will ultimately be created and/or saved by the Act (Economists, 2009). Now, the estimate stands at 1.6 to 1.8 million jobs that have been saved/created already. How this is measured and defined, though, is a gray area that many economists and others cannot agree on. Many people feel that the way this has been measured paints an inaccurate representation of just how much the Recovery Act has actually done for the American economy and job market. The people who were able to keep their jobs or who were able to get good jobs in a tough economy, though, may not share that opinion.
The argument against the job creation numbers in the stimulus package comes about because there is no clear way to determine how many jobs would have been created or saved if the stimulus package would not have passed (Harvard, 2009; Lott, 2009). In other words, there is really no way of comparing what is to what might have been. While the Recovery Act may have generated that many jobs, it is equally possible that those jobs...
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