Thursday, February 12, 2009

What we expect the stimulus to look like

Today, the House Republican Whip Eric Cantor released a rough comparison of the "final" Democrat stimulus package and how it compares to the Republican alternative.  

Note the use of quotations around the word "final."  This points to the fact that even though the House voted 403-0 on a Republican motion to make the stimulus conference report public earlier in the week, no on knows exactly what is in the "final" bill except for the privileged few who were part of the closed door meetings to draft the conference report.

(As No Text Has Been Provided To The General Public, This Analysis Is Based On Press Reports And Rumor)

Cost of the "Final" Democrat Spending Bill: $790 Billion
Cost of the House Republican Alternative: $477 Billion


Number of Jobs Created by the "Final" Democrat Spending Bill: 3.5 million

Number of Jobs Created by the House Republican Alternative: 6.2 million

Tax Cuts:
Percentage of Bill that President Obama Wanted for Tax Relief: 40%
Percentage of "Final" Democrat Spending Bill Dedicated for Tax Relief: 26%
Percentage of "Final" Democrat Spending Bill Dedicated for Tax Relief Minus the Alternative Minimum Tax Patch, Which Doesn't Provide any American with new Tax Relief: 17.5% 

Tax Relief For Working Families:
"Final" Democrat Spending Bill: Tax relief phased-out for some income taxpayers. Congressional Democrats reduced middle class tax relief by $29 billion to fund their spending priorities for "pet projects" for mice and golf carts. Benefit is now capped at $400 a year for an individual and $800 a year for a married couple. 

For an individual, the tax relief equates to:

$7.70 a week
$1.10 a day 
19 cents a working hour

House Republican Alternative: 
Tax relief for 100% of income taxpayers. Minimum average relief would be $500 per year. Most families would see relief closer to $1,500 per year. A married couple will see relief as high as $3,200 a year.


Tax Relief For Small Businesses:
"Final" Democrat Spending Bill: No provision.

House Republican Alternative: Tax deduction equal to 20% of their income for those small businesses with 500 or fewer employees.


Tax Relief For Employers:

"Final" Democrat Spending Bill: While initially identical, the "final" bill limited this benefit to firms with limited income, leaving out not only large employers, but also many small businesses. Initially, research indicated that over 290,000 employers, with a combined total of over 77 million employees, could be excluded from this tax relief as a result of this last minute change.

House Republican Alternative: Allow employers to offset their current losses against past tax liabilities (net operating loss carryback)

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