Economic Stimulus Package of 2009: How will it affect you?
Everyone is familiar with the fact that US economy is going through a phase of economic downturn, which started in the year 2007. However, Government is planning several strategies to get this under control. It has passed an Economic Stimulus Bill in 2009, which is referred to as ‘The American Recovery and Reinvestment Act’. This Bill proposes several tax cut measures, which are intended to stimulate the US economy.
This article discusses some of the measures that are proposed to help each and every citizen of the country.
- Tax credits for SSI recipients, disabled veterans and senior citizen
The Bill offers a payment of $250 to disabled persons, senior citizens (who have retired from their jobs) and SSI recipients (who receive benefits from the Social Security Administration). The tax credit will also be offered to disabled veterans, who receive benefits from the Department of Veterans Affairs.
- Health insurance for unemployed workers
Obama Government has planned health insurance for the unemployed workers. Under the COBRA (Consolidated Omnibus Budget Reconciliation Act) program, jobless workers can also purchase health insurance policies of their previous employer; however, the coverage is slightly more than what an unemployed person can afford. This Bill helps in implementing some health care modernization projects, which are expected to create a number of jobs, mainly in the high technology sectors.
- Tax credits for individuals, families and businesses
Though direct tax rebates (as offered in 2008) are not offered in this plan, yet families with children will qualify for $1000 tax credit, per dollar earned over $3000. This will also help individuals/families that do not pay tax and families (with 3 or more children), who’ll get the benefit of child tax credit. This Bill ensures that the wealthy people pay at least some amount of tax. There is great news for first time homebuyers, too. Homebuyers will get $8000 tax credit if they purchase a house before 1st December, 2009. This strategy will inspire people to buy a home, which in turn will positively affect the US economy as a whole.
- Improvement in education
Economic stimulus Bill of 2009 invests funds in order to maintain a strong education system, prevent cutbacks in educational programs and also to make college education more affordable. This Bill increases higher education tax credit available to about 4 million students, who were not able to pay for higher education previously.
- Development of new technologies
Industrial innovation has the power to recover US economy. Therefore, the Economic Stimulus Bill of 2009 facilitates the development of new technologies and provides opportunity for student training so that they can compete in a global economy. This Bill provides $1.16 billion to fund research and offers $3 billion to the National Science Foundation in order to facilitate research in Engineering and Fundamental Science. The Bill also assigns $10 billion for the National Institutes of Health for expanding jobs in some key areas.
Economic Stimulus Bill increases unemployment benefits to about $25 per week, which will be of great help to about 20 million jobless workers. All these measures are expected to positively affect the US economy in the forthcoming days.