I’ve been on the prowl for a complete stimulus package breakdown like this for a while, and I finally found one posted by CNN Money. They break down all the details of Obama’s initially proposed $825 billion stimulus package, citing the overall goals and financial disbursements of the package.
(See Bottom of post for latest Updates)
Obama’s stimulus package could be seen approved by mid February and focuses spending and tax cuts through four primary areas:
- Infrastructure - Rebuilding our highways, bridges, schools, etc. alongside creating more renewable energy (39% of total)
- State Relief - Helping the states with unemployment benefits, budget shortfalls, medicaid, and the like (13% of total)
- Struggling Citizens – Increase food stamps, unemployment insurance coverage, and provide insurance for the jobless (12% of total)
- Tax Cuts – Tax cuts to individuals and business (36% of total)
Republicans feel that much more should be spent on providing tax cuts and feel that this stimulus plan is simply an excuse for Democrats to spend and push their own programs. This is highlighted by the $54 Billion that will be spent on a renewable energy policy. Other opposition feel the plan is exaggerated as the proposed 3-4 million jobs created is more realistically under 1 million.
Several breakdowns from the stimulus package include:
Construction projects: $90 billion. Fund the rebuilding of crumbling roads and bridges, build clean water and flood control mechanisms and provide funding for mass transit systems.
Education: $142 billion. Rebuild thousands of schools by modernizing classrooms, labs and libraries. The plan would also increase funding for Pell Grants.
Renewable energy: $54 billion. Double production of alternative energy in the next three years. Weatherize low-income homes, modernize 75% of federal buildings and update the nation’s electrical grid with a new, cost-efficient “smart” grid.
Medicaid: $87 billion. Increase Federal Medicaid Assistance Percentage so states do not have to cut eligibility for Medicaid due to budget shortfalls.
Unemployment benefits: $43 billion. Extend through December 2009 emergency unemployment insurance assistance to states. Increase weekly unemployment benefits by $25, and provide incentives for states to expand unemployment coverage.
Middle-class tax cut: $145 billion. Tax cut amounting to $500 a year for individuals and $1,000 for couples. The full credit would be limited to those making $75,000 or less ($150,000 or less for workers filing joint returns).
Tax cuts for companies suffering losses: $17 billion over 10 years. Obama would temporarily broaden the “net-operating loss carryback” to five years, up from two years currently. The provision would let companies apply their 2008 and 2009 losses to past and future tax bills so they can get money back on taxes they’ve already paid or would otherwise have to pay.
Another key piece of the stimulus package that is being debated is how long it will take before the economy actually sees any of this spending take place. Argued is that well less than 50% of the stimulus will be utilized in the first year, with one report suggesting that only 64% of the stimulus would reach the economy by 2011.
The WSJ today has a great interactive chart showing visually how the majority of spending will be disbursed amongst the states:
In a rare visit the President made his way to Capitol Hill to stress urgency as another 70,000+ layoffs have already been announced this week. We will continue to post updates as they come.
01-29-09 Update: The House Passed the Bill (Note: this is the earlier version, see 2/13 update).
02-04-09 Update: Proposed Aggregator Bank Flaws revealed.
02-10-09 Update: Treasury Secretary Geithner Reveals new plan which is not well received by the market.
02-13-09 Update: House passes $787 Billion Version of Stimulus Package, 246 to 183. Not one Republican voted yes. Read more.
02-17-09 Update: President Obama signs the Stimulus Package into law.
02-26-09 Update: We break down the Obama budget plan.
Stimulus 101: What’s in the Bills
CNNMoney.com, Tuesday January 27th, 2009
Stimulus Bill Near $900 Billion
Greg Hitt and Elizabeth Williamson
WSJ, January 28th, 2009