House Republicans present alternative to Obama's stimulus plan

[one...two...tree 2,762]

WASHINGTON – House Republican leaders presented President Barack Obama on Friday with proposals to stimulate the economy that rely exclusively on tax cuts and envision none of the federal spending backed by Democrats and the administration.

The alternative includes across-the-board cuts in the two lowest income tax brackets, placing unemployment benefits off-limits to taxation and a new $7,500 break for home buyers who make a minimum down payment of 5 percent.

Another provision would also cut taxes for small businesses.

Republican Reps. John Boehner of Ohio and Eric Cantor of Virginia outlined the approach at a White House meeting with congressional leaders of both parties at which Obama urged passage of legislation by early February to revive the economy.

House Democrats plan a vote next week on an $825 billion plan that includes about $275 billion in tax cuts and $550 billion in new spending. Much of the spending would come in politically popular areas such as health care, food stamps and road construction and would include money designed to blunt the impact of state budget cuts affecting schools.

The GOP alternative reflected fault lines in the debate over the first major issue to arise since Obama and the new Democratic-controlled Congress took office.

"Rather than spending too much, too late as the congressional proposal does, our proposals let the American people keep more of what they earn to spur investment, encourage savings and create more private sector jobs," Boehner, the GOP's House leader, said in a statement.

While Republicans claimed their approach provided for more in tax relief than the Democrats' measure, they said they were still awaiting official estimates. They also said they could not estimate the number of jobs it would create.

It called for reducing the current 10 percent bracket to 5 percent, affecting a taxpayer's first $8,350 in income, and lowering the existing 15 percent bracket to 10 percent, covering income from $8,351 to $33,950.

Small business owners could take a tax deduction equal to 20 percent of their income.

Many Republicans have criticized the extent of spending advocated by Democrats.

"We understand that there will be spending in the final bill, the Democrats have made that completely clear," said Brad Dayspring, a spokesman for Cantor, the No. 2 Republican in the House.

Separately, Senate Republican leader Mitch McConnell, R-Ky., renewed his call for the federal government to provide help to the states in the form of loans rather than grants, as Democrats prefer.

In an appearance at the National Press Club, McConnell said of Obama: "I think he's open to new ideas. I've given some of mine. ...We'll see as we go along how many of them are incorporated."

http://news.yahoo.com/s/ap/20090123/ap_on_...blicans_economy

[Dan J 277]

What do you think people will do with extra money during the current economic conditions. Spend it to stimulate the economy, or save it.

If you picked save, your probably right.

A package relying on tax cuts is nice and all, but will do little to stimulate the economy. Even if everyone did spend the extra money, the economic return would be less than that of infrastructure investment.

[one...two...tree 2,762]

What do you think people will do with extra money during the current economic conditions. Spend it to stimulate the economy, or save it.

If you picked save, your probably right.

A package relying on tax cuts is nice and all, but will do little to stimulate the economy. Even if everyone did spend the extra money, the economic return would be less than that of infrastructure investment.

I agree. Those stimulus checks were hardly a blip on the charts. The Fed has to do some heavy duty investment through public works.

[mawilson 2,133]

I agree. Those stimulus checks were hardly a blip on the charts. The Fed has to do some heavy duty investment through public works.

Are you kidding? 3.5% GDP growth when the rest of the world was already in recession?

[one...two...tree 2,762]

I agree. Those stimulus checks were hardly a blip on the charts. The Fed has to do some heavy duty investment through public works.

Are you kidding? 3.5% GDP growth when the rest of the world was already in recession?

For how long? As I recall, there was no staying power.

[mawilson 2,133]

I agree. Those stimulus checks were hardly a blip on the charts. The Fed has to do some heavy duty investment through public works.

Are you kidding? 3.5% GDP growth when the rest of the world was already in recession?

For how long? As I recall, there was no staying power.

For one quarter. But what did you expect - it was supposed to be a temporary boost.

It didn't solve the underlying problem with the housing market, and neither will this stimulus.

[Jasman0717 9]

Wheres the part that say I don't have to pay taxes ever again

[EstebanTrabajos 7]

People will either save it or pay their mighty plastic debt,

Plastic is love

[one...two...tree 2,762]

I agree. Those stimulus checks were hardly a blip on the charts. The Fed has to do some heavy duty investment through public works.

Are you kidding? 3.5% GDP growth when the rest of the world was already in recession?

For how long? As I recall, there was no staying power.

For one quarter. But what did you expect - it was supposed to be a temporary boost.

It didn't solve the underlying problem with the housing market, and neither will this stimulus.

If people have jobs, they'll spend money, buy homes. Public works will get those two factors going. Investing in alternative energies will help job growth in the private sector. We could cut down our trading with China and rebuild manufacturing jobs here on U.S. soil.

[w¡n9Nµ7 §£@¥€r 123]

If people save money, it will increase the COH for banks. That will help with the credit markets.

By the ####### you hear in the media, you'd think there was no credit problem, just a consumer confidence problem.

[one...two...tree 2,762]

If people save money, it will increase the COH for banks. That will help with the credit markets.

By the ####### you hear in the media, you'd think there was no credit problem, just a consumer confidence problem.

I agree that putting more money into the pockets of Americans either through tax cuts or stimulus checks will help, but it's not an end all solution as the Republicans in Congress believe it to be. It's simply not enough.

[w¡n9Nµ7 §£@¥€r 123]

If people save money, it will increase the COH for banks. That will help with the credit markets.

By the ####### you hear in the media, you'd think there was no credit problem, just a consumer confidence problem.

I agree that putting more money into the pockets of Americans either through tax cuts or stimulus checks will help, but it's not an end all solution as the Republicans in Congress believe it to be. It's simply not enough.

I'm all for embracing this opportunity to rectify (or begin rectifying) the systemic neglect of our national infrastructure. I believe it will be good for us long term, much in the same way the build out of our interstate highway system has been.

That said, the impact of these jobs will amount to a slow and steady long-term stimulus. If you want to shoot the economy up with a quick, single-burst shot of pure raw adrenaline, there's just one way to do it. Cold, hard cash.