Obama touts economic aid plan to public
WASHINGTON – President Barack Obama took to the airwaves yesterday to promote his economic aid plan in what’s-it-mean-for-me terms: thousands of better schools, lower electricity bills, health coverage for millions who lose insurance.
It was the latest appeal from the new president for a massive spending bill designed to inject almost $1 trillion into the economy and fulfill campaign pledges.
As lawmakers consider an $825-billion plan and Obama woos them with an eye toward a second economic package, he used his first White House-based radio and Internet address to update the public about his goals.
“Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four. And we could lose a generation of potential, as more young Americans are forced to forgo college dreams or the chance to train for the jobs of the future,” Obama said in a five-minute address.
“In short, if we do not act boldly and swiftly, a bad situation could become dramatically worse.”
Obama aides have refused to rule out that the administration would seek a second economic recovery plan – even before Congress approves the first – to patch an ailing economy. Some are considering a sequel to assuage members of their own Democratic Party who fret that too little of the money is going toward public works projects that would employ constituents.
Along with the speech, Obama’s economic team released a report designed to outline tangible benefits of the plan and shore up support. Aides said they wanted people to understand exactly what they could expect if Congress supported the proposed legislation.
The stimulus plan
Aspects of the $825-billion stimulus plan being put together by the Obama administration and Congress
CASH PAYMENTS
Seniors, disabled and veterans: $300 payments to Social Security beneficiaries, and $300 payments under the Supplemental Security income program for elderly and disabled people living in poverty. Veterans receiving disability or pension payments would also receive $300. The cash payments are one-time only.
TAXES
Individuals: $500-per-worker, $1,000-per-couple tax cut for two years, costing about $142 billion; greater access to the $1,000-per-child tax credit for the working poor; expanding the earned-income tax credit to include families with three children; a $2,500 college tuition tax credit; $7,500 tax credit for middle-income, first-time home buyers who purchase homes in the first half of 2009; temporarily suspends taxation of unemployment benefits.
Businesses: An infusion of cash into money-losing companies by allowing them to claim tax credits on past profits dating back five years instead of two; bonus depreciation for businesses investing in new plants and equipment; a doubling of the amount small businesses can write off for capital investments and new equipment purchases.
Energy: $31 billion in tax credits to boost renewable energy production and promote energy efficiency, including making it easier for money-losing companies to benefit from energy tax credits. Makes tax credits for energy-efficient homes more generous.
SPENDING
Aid to the poor and unemployed: $40 billion to provide extended unemployment benefits through Dec. 31, increase them by $25 a week and provide them to part-time and other workers.
Health care: $27 billion to subsidize health care insurance for the unemployed and provide coverage through Medicaid; $87 billion to help states with Medicaid.
Infrastructure: About $140 billion, including $27 billion for road and bridge construction and repair; $20 billion to repair and renovate school and university buildings; $9 billion for improved access to broadband; and $1.4 billion for western water projects.
Education: Almost $100 billion, including $77 billion in grants to states for special education, local school districts, and a $500 increase in the maximum Pell Grant.
GOALS
Double within three years the amount of energy that could be produced from renewable resources.
Upgrade 10,000 schools for about 5 million students.
Save $2 billion a year by making federal buildings energy efficient.
Triple the number of undergraduate and graduate fellowships in science.
Tighten security at 90 ports.
Source:newsday