The “S” Words: Stabilize and Stimulus
Stabilize and stimulate. Those two words sum up efforts in Washington D.C. last week to address the economy, housing market, and increasing layoffs in the job market. The stabilization comes in the form of a plan by Treasury Secretary Timothy Geithner to shore up banks and deal with the troubled assets they hold. The stimulus comes in the form of the American Recovery and Reinvestment Act, recently passed by Congress. Here’s a quick look at both.
American Recovery and Reinvestment Act (Stimulus Bill)
Approximately $790 billion in spending and tax cuts (as of this writing)
Spending in Infrastructure and Science - $120 billion
Spending in Health - $14.2 billion
Spending in Education and Training - $105.9 billion
Spending in Energy, including over $30 billion in infrastructure - $37.5 billion
Spending geared towards individuals to help during economic - $24.3 billion
Spending in Law Enforcement, Oversight, Other Programs - $7.8 billion
*The WashingtonIndependent.com
Some of the highlights that will likely impact you:
$7,500 tax credit for first time homebuyers increases to $8,000 – this tax credit does not have to be paid back. More to come in next week’s Mortgage Fortune.
Making Work Pay Tax Cut, a one-time refundable tax credit up to $400 per worker
($800 per couple filing jointly) who meet specific income criteria
Social security recipients and disabled veterans who don’t pay payroll taxes receive one-time payment of $250.
Extended unemployment benefits will continue to December, 2009 instead of phasing out in March as planned.
