Stimulus: What Consumers Need to Knowby Tim Manni
This week, CNNMoney.com published a piece that broke down six portions of spending from the president’s upcoming stimulus package. While CNNMoney was quick to point out that their designations were incomplete — since the numbers will “likely change before any bill is enacted” — the overview does provide consumers with a skeleton of how the spending will impact their everyday lives. I’ll highlight just one or two of the main points from each section.
Paychecks: “$145 billion in tax cuts for working individuals.
The tax cut would be $500 per person ($1,000 for a couple) and would phase out for people making over $75,000 a year ($150,000 for couples). You can get the money either by claiming it on your tax return, or through a reduction in the taxes that are taken out of your weekly paycheck.”
Education: “$14 billion in tax credits of up to $2,500 a year for college students with an annual income below $80,000.
$79 billion to help states offset education costs. While people won’t see this directly, it will likely mean that services won’t have to be cut or taxes won’t have to be raised.”
Healthcare: “$4 billion for more preventative care programs. $1.5 billion for improvements at community health centers.
$87 billion for states to help pay Medicaid costs. Again, while not directly visible to most people, state taxes would likely rise, or services cut, absent this measure.”
Housing: “$4 billion for homeowners to take up to 30% of the cost of conservation measures as a tax credit, up to $1,500 per person. $300 million for consumers to replace old appliances.”
Transportation: “$30 billion for highway and bridge construction projects.
$10 billion for mass transit, including new lines, buses, trains and stations.”
Additional Infratstructure Projects: “$400 million for flood control efforts, which include buying and preserving open land around the country.
$32 billion for a “smart” utility grid and renewable energy production, although in the long run this could change the way you use appliances at home and clean the air.”
(story courtesy of theKirkReport.com)