2009 Economic Stimulus Plan Details

The newly enacted 2009 economic stimulus plan has many parts to it that all aim to improve our struggling economy. The plan will include a very large amount of government spending as well as many tax breaks, credits, and deductions.

Spending

The spending part of the plan will be focused on providing aid to the low-income and unemployed. The government is looking at spending more than $43 billion dollars in this particular area. The plan will increase unemployment benefits, provide a one-time increase of social security benefits, and increase welfare payments.

The government will be spending nearly $40 billion dollars to improve our health care system and provide insurance for millions of Americans. Another major point of the spending part of the plan will include another $40 billion to infrastructure to provide more jobs. The money will be spent to improve roads, bridges, and public transportation systems. This will provide the opportunity for many new jobs.

Taxes

The tax part of the plan will include many benefits for individuals as well as businesses. Individuals will see an increase in the child tax credit, earned income credit, a decrease in payroll taxes, additional college tuition tax credits, and additional funds for first-time home buyers.

Businesses will see tax breaks for purchasing new equipment, allowing more credits for renewable energy, and giving businesses the option to claim tax credits on past profits from the previous five years instead of the current two years allowable under tax law.

To find the most current economic stimulus information, visit TurboTax.