President Barack Obama is developing a $300 billion dollar stimulus package to strengthen our weak economy. He also wants this stimulus package to create more job opportunities across our nation.
Obama is expected to release the intricacies of his plan when he speaks in front of congress on Thursday evening. His plan for funding this stimulus package is focusing the infrastructure spending we already have while still maintaining targeted tax cuts.
“I’m going to propose ways to put America back to work that both parties can agree to, because I still believe both parties can work together to solve our problems,” Obama said in a Labor Day speech in Detroit.
Many analysts believe this expenditure is going to be received adversely by congress. One thing that will affect the congress’s decision regarding the stimulus package is the looming 2012 election. Most people believe that conservatives will object to the stimulus package with out even thinking over it. One reason they will cite is the failed stimulus package of 2009 that was President Obama’s idea.
One option that is being discussed under this stimulus package is a “infrastructure bank.” This will require 10 billion dollars and is designed to help spur more development in the private sector. The plan is to make the bank self sufficient by collecting interest on the loans they give out, which is a great thought in theory.
The President also wants to pass some similar to the HIRE Act of 2010. This will give businesses a tax credit that hire unemployed citizens.
One of the final things President Obama is expected to ask for is an extension on unemployment benefits. In 2009 they were extended to the current 99 week maximum we have today. In 2009 it cost the government 56.5 billion dollars to extend the benefits. Republicans were outraged, while Democrats say that unemployment money is almost directly deposited back in to the economy.