Details of latest economic stimulus package
The $819 billion economic stimulus package endorsed by President Barack Obama and passed by the House yesterday would provide a mixed bag of immediate and long-term aid, the New York Times reported.
Here are some of its main features:
·$275 billion in tax cuts would include credits of up to $500 for individuals and $1,000 for couples that would be implemented by reducing the amount of money withheld from each paycheck. Some experts say that adjusting withholding rates could be complicated and delay giving people the money.
·Aid to states, including an $87 billion increase in the federal contribution for Medicaid costs and a $79 billion state fiscal stabilization fund, could help states meet budget shortfalls and lessen steep cuts in jobs and services.
·$30 billion is being set aside for highway construction and tens of billions more for other infrastructure projects, such as water projects, park renovation, military construction and local housing projects. According to a Congressional Budget Office analysis, only 64 percent of the bill’s spending would be completed within 19 months; later spending could help energize the economy once faster-acting components run out, if economic recovery is slow. The House rejected a proposal for $200 million in National Mall restorations.
·The package contains other aid, such as $140 billion for education, $20 billion of which would go to school renovations. It also includes proposals for health-care and alternative energy programs.
·The House bill would allocate $20 billion over the next five years to expand the food stamp program and $43 billion over two years to extend and increase unemployment benefits.