House Democrats on Thursday, after weeks of talks with President-elect Barack Obama's top aides, released an expansive recovery plan that call for $550 billion in spending and id states and $275 billion in tax cuts.
House Speaker Nancy Pelosi, D-California, stated "this {package} is just the first step"
This is what the bill roughly includes:
1. $90 billion to modernize roads, bridges, mass transit and waterways, and over $140 billion to states to defray their costs for education and to modernize schools.
2. A number of measures to help the economically vulnerable. $37 billion to continue the current extended unemployment benefits program through December 31, 2009; and another $9 billion to increase the average unemployment check by $25 a week on top of the roughly $300 a week jobless workers currently receive.
3. Another $30.3 billion to subsidize for 12 months the cost of cobra health insurance coverage and extend the time eligible workers may keep it. Cobra coverage allows newly laid off workers to keep health insurance provided by their former employers. Workers who would be eligible are those 55 and older and those who have at least 10 years tenure with their employer.
4. The package also includes a "Making Work Pay Credit," which Obama campaigned on. The credit would provide low and middle class income workers with a tax cut equal to $500 a year for individuals and $1,000 for couples. The money would be delivered fairly quickly to workers, with companies reducing the tax they withhold from employees' paychecks. the credit would also be refundable, meaning eligible workers can get if even if they don't make enough money to owe income tax.
The bill also includes an expansion of Earned Income Tax Credit, which is refundable credit for low income workers, and an increase in the child tax credit.
I still like the plan where we all get $300,000. Now there's a plan.
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