Discharge Stimulus Program
It also aimed to restore trust in the finance industry by limiting bonuses for senior executives in companies that received funds. (Sources: 'Letter to Senator Grassley,' Congressional Budget Office, March 2, 2009. Recovery.gov) How It Worked ARRA had three spending categories. It cut taxes by $288 billion. It spent $224 billion in, education and health care. It by allocating $275 billion in federal contracts, grants, and loans. Congress designed the Act to spend $720 billion, or 91.5 percent, in its first three.
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It allocated $185 billion in, $400 billion in and $135 billion in. The Obama administration did better than planned. By the end of FY 2009, it spent $241.9 billion.
Obama's economy stimulus package was passed in February 2009 as the American Recovery and Reinvestment Act. It ended the recession in July. Why Fiscal Stimulus Fails. Fourth quarter growth for 2. Nonetheless, as the U. In January, the Fed let the interest rate remain constant, and there is now an. (1963), 40, 57-66 57 With 7 text-figures Printed in Great Britain THE CHANGE OF DISCHARGE FREQUENCY BY A.C.
Of that, it spent $92.8 billion in tax relief, $86.5 billion in unemployment and other benefits and $62.6 billion in job creation grants. Was It a Success? Many critics pointed out that Obama's stimulus package did not succeed because the economy contracted. The projected ARRA would stimulate by 1.4 percent to 3.8 percent that year. That meant would be 1.4 percent to 3.8 percent better than if Congress did nothing.
In fact, the CBO projected the economy would contract 3 percent for 2009. That's because it had already contracted 5.4 percent the first quarter, and 0.5 percent in the second. The. By Q4 2009, GDP was up 3.9 percent, and had risen to 10,428. By 2010, the economy expanded 2.5 percent. The economic stimulus bill was supposed to save 900,000-2.3 million jobs. As of October 30, 2009, it saved 640,329 jobs. ( This is the most recent report.
The Recovery Board stopped estimating job creation after that.) Not all of that success was thanks to the Stimulus Package. And active emerging boosted global growth. But by March 2009, had done all it could.
It was evident more was needed. No doubt, the economic stimulus package inspired the confidence needed to turn the economy around. Once in office, Obama realized he needed to increase the fiscal stimulus from the $190 billion plan he proposed in his campaign. Some components of his campaign plan, such as enacting a foreclosure moratorium, had already been implemented. Others, such as eliminating taxes on seniors making up to $50,000, were still part of Obama's economic agenda elsewhere.
Obama's biggest challenge was to create enough of a stimulus to soften the, but not big enough to raise further doubts about the ballooning. Unfortunately, the plan was blamed for doing both - failing to below 9 percent, and adding to the debt. Even so, the stimulus plan was not condemned as much as, Medicare, and Medicaid for the debt. How Well Did Each of the Three Components Work? Obama's tax rebates were supposed to encourage, but many experts doubted it.
The rebates showed up as less tax withholding. Unlike the, workers did not receive checks. As a result, most people weren't aware they got a tax rebate. The helped create jobs, increased lending from the SBA and community and reduced for small business investors. The aid helped, but many states were so underwater that their losses outweighed the federal assistance. The public works construction was probably the most well-publicized. Signs were posted wherever stimulus money was used to construct roads or public buildings.
Government Stimulus Program
It was estimated to retain or add 3 million jobs, many of which were sorely needed in the construction industry. Economic Stimulus for Small Businesses Although most of the media attention was on the $105 billion invested in large banks, the Treasury's TARP program also invested $92 billion to strengthen community banks across the country. These banks were directed to use the funds to help in their local area. Second, the Economic Stimulus Package included $54 billion in tax writeoffs for small businesses. Here's the breakout:. Deductions for machinery and equipment, such as computer and office equipment, signs, and vehicles was raised to $250,000 (except SUVs which were limited to $25,000).
Property that didn't qualify for the tax credit could be depreciated by 50 percent. Investors in small, publicly-held businesses who held their stock for more than five years received a capital gains tax cut. Small businesses could delay paying the 3 percent withholding tax on goods and services sold to governments. Small businesses that hired veterans and students who looked for work for more than six months received tax credits. Delay taxes for businesses that reduced their debt. The Small Business Administration 7(a) loan guarantee was raised from 75 percent to 90 percent of the value of the loan. Fees were eliminated on the SBA's 504 program, which guaranteed $4 million worth of economic development loans to small businesses.
The budget also allocated $64 billion, broken out as follows:. in tax credits for small businesses that add new workers or give raises beyond a cost-of-living increase. Raise the limit on from $2 million to $5 million.
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from the for 8,000 community (assets under $10 billion), which do half of all small business lending. to eliminate capital gains taxes for investors in small businesses.
Most taxpayers who received the economic stimulus payment last year will not qualify for the recovery rebate credit on their 2008 federal income tax return. However, some individuals who did not get the economic stimulus payment, and a smaller number of those who did, may be eligible for the recovery rebate credit. If you didn't get an economic stimulus payment in 2008, you may be eligible to receive the recovery rebate credit in 2009. To determine if you are eligible for the recovery rebate credit you will need to know how much your 2008 economic stimulus payment was. Our online tool, How Much Was My Stimulus Payment?, can get you the answer right away. Visit the for details.
If You Didn't File for a Stimulus Payment If you didn't file for an economic stimulus payment in 2008 because you weren't sure you were eligible, you may be able to file for a payment in 2009. Find out more if you:. Receive retirement or disability benefits. Receive pension, disability or survivor's benefits. Receive Tier 1 benefits. Are a Find Out if You're Eligible You are if:. You or your family has at least $3,000 in qualifying income from, or in combination with, Social Security benefits, Veterans Affairs benefits, Railroad Retirement benefits and earned income.
Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment. You and any family members listed on your tax return have valid Social Security numbers.
You are not a dependent or eligible to be a dependent on someone else’s federal tax return. (The same must be true of any family members claimed on your return.) How Much Is It Worth?