Whether someone is reading the newspaper, surfing the web, watching television, or just talking with their friends or co-workers, the discussion of the stimulus plan that President Barack Obama has proposed will come up. Everywhere we turn we hear about more and more people losing their jobs due to the economy and hardship the United States has taken on. The relief package, some say could not have come at a better time, but others disagree. This paper will discuss the pros and cons of the stimulus plan, how the funds are intended to be used, and show what kind of future we may be looking at.
To start, the President has proposed a plan set at $787 billion. This proposal possibly could create 3.5 million new jobs, 2.5 million of which will be private sector jobs (Flexo, 2009). This money is to come from the reduction of corporate tax breaks rather than future individual tax payments, and is said to be an incentive to stimulate the economy targeted to those who have lost their jobs or homes, and who are facing cutbacks in state and local governmental services. These funds will also be used to invest in infrastructure around the country, including transportation, roads, heath care, and education. The plan is said to pump $65 billion into the economy this year and $399 billion next year. Individuals are said to receive a $400 payroll tax cut and $800 for couples. Retirees, disabled veterans, and others who do not pay payroll taxes would get a $250 payment. However, the stimulus has been phased out for individuals with adjusted incomes over $75,000 and couples whose income is over $150,000 (Flexo, 2009). On the plus side, this package is to provide a new $2,500 tax credit for college education expenses, and provide an $8,000 tax credit for first time home buyers for homes purchased between January 1st and December 1, 2009.
On the other hand, as good as this all may sound many are not happy. With only three Senate Republicans votes, and many leery...