Plante & Moran is committed to serving as a resource to help our communities and clients find information and better understand the economic stimulus package. We have designed this page as a resource for you and it contains both links to industry websites and certain pages of the Plante & Moran website which we hope will allow you to optimize the numerous provisions of this stimulus.
On Thursday, February 12, congressional leaders reached an agreement on President Obama’s economic stimulus bill, paving the way for an infusion of $787 billion aimed at jump-starting the economy. The final bill, which was approved by both houses, contains spending increases and tax relief intended to create jobs and put money back in the pockets of targeted citizens and companies.
The final bill includes $507 billion in spending programs and $282 billion in tax relief. While the tax relief stipulations are scaled down from what President Obama’s package originally proposed, it will still provide credits of up to $400 for individuals and $800 for families within certain income levels. On this page we have the most up-to-date CCH Tax Briefing for your reference. Some highlights of the act include:
Spending
- $40 billion is earmarked to provide extended benefits to the unemployed and $20 billion is set aside to increase food stamp benefits.
- $14 billion for a one-time $250 payment to Social Security recipients, lower income individuals on Supplemental Security Income, and veterans who receive disability and pension benefits.
- $21 billion to subsidize insurance premiums for the unemployed under the COBRA program and $87 billion to assist states with faltering Medicaid programs. Additionally, $19 billion has been tapped to modernize health information technology systems.
- The states will also see aid from the stimulus package, as $5 billion has been earmarked to offset states’ budget cuts.
- The package includes over $100 billion to defray the costs of the nation’s education system, with $54 billion going to the states to prevent cuts in state aid to school districts, up to $10 billion for school infrastructure repair, and $26 billion for special education programs the No Child Left Behind law.
- Over $85 billion is dedicated for improvements to the nation’s infrastructure, with $46 billion being earmarked for transportation projects and $8.4 billion for mass transit improvements. Additionally, $6.4 billion of these funds will be for clean drinking water projects and $7 billion has been dedicated to bring broadband Internet services to underserved areas.
Taxes
- Approximately $115 billion for a $400 per worker tax credit and $800 per-couple tax credit in 2009 and 2010, for targeted income brackets.
- Nearly $70 billion to negate some 24 million taxpayers from being hit with the alternative minimum tax in 2009.
It should be noted that many of the provisions of the stimulus package expire within two years.
We hope that the links and documents are helpful to you. We recognize that gaining an actionable level of knowledge may be difficult in certain areas and we will be happy to assist you where necessary. Please contact the people listed on this page if we can be of greater assistance.
Gordon Krater
Podcast:
Links:
Contacts:
Michigan
Gordon Krater
248.352.2500
gordon.krater@plantemoran.com
Ohio
Dave DiManna
419.842.6111
david.diManna@plantemoran.com
Robert Shenton
614.222.9064
robert.shenton@plantemoran.com
Craig Thornton
216.274.6535
craig.thornton@plantemoran.com
Illinois
Chris Montague
312.602.3561
chris.montague@plantemoran.com
