Congressional Democrats Forgetting Key Part of Obama's Relief Package?

CQ Politics is reporting on the Democratic leadership's desire for a second package to strengthen the economy that largely lines up with Barack Obama's plans. But are Congressional Dems omitting aid to state governments, one of the key planks of Obama's plan?

Democrats have been contemplating a second effort to inject money this year into the faltering economy. The idea appears to have gained traction, particularly among congressional leaders, since Monday when presumptive Democratic presidential nominee Sen. Barack Obama of Illinois outlined a $50 billion stimulus proposal that will serve as the centerpiece of a two-week economic tour of battleground states.

Though the prospects for a second stimulus package are slim, the debate gives congressional Democrats an opportunity to rally around Obama.

The massive economic stimulus package enacted in February focused on tax breaks for businesses and rebates for individuals and families.

Obama has proposed a second round of rebate checks, an extension of unemployment insurance, aid to state governments and a new $10 billion fund to help stem the tide of home foreclosures.

He also proposed increasing investment in infrastructure such as roads, schools and bridges.

"There's a need for additional targeted stimulus," said Senate Budget Chairman Kent Conrad , D-N.D.

Schumer said infrastructure investment and a second round of rebate checks could be part of the new package, which Democrats are likely to unveil after the July Fourth recess.

State government spending is a key prop holding up the economy during a recession. Dem leaders might want to check out the NYT, which pointed out earlier this week:

At $1.8 trillion annually in a $14 trillion economy, the states and municipalities spend almost twice as much as the federal government, including the cost of the Iraq war. When librarians, lifeguards, teachers, transit workers, road repair crews and health care workers disappear, or airport and school construction is halted, the economy trembles.

Tags: Barack Obama, Chuck Schumer, Recession, state budgets (all tags)

Comments

7 Comments

how about

not having to count the 600 bucks we already got as income for next years taxes?

by sepulvedaj3 2008-06-11 02:11PM | 0 recs
Re: how about

It doesn't count.

by Zeitgeist9000 2008-06-11 02:47PM | 0 recs
Re: how about

umm yes it does. It isnt a refund, its a rebate, and it counts as income.

by sepulvedaj3 2008-06-11 02:51PM | 0 recs
Re: how about

It does not count towards income:

"The rebate is tax-free. You won't have to count it as income on your 2008 taxes. You will have to note it on your 2008 tax return so the government doesn't pay you the money again."

Source: http://blogs.moneycentral.msn.com/smarts pending/archive/2008/02/14/confused-your -guide-to-the-tax-rebate.aspx

by Zeitgeist9000 2008-06-11 03:06PM | 0 recs
Re: how about

It really wouldn't be a "stimulus" if we had to turn around and count it towards our income.

by Zeitgeist9000 2008-06-11 03:07PM | 0 recs
Re: how about

ahh i see MSN fixed their analysis (and therefore mine going forward) thanks for the info.

When everyone first tried describing it, including msn money, they said it was taxable.

by sepulvedaj3 2008-06-11 03:22PM | 0 recs
Head Excuse-Maker

Perhaps with the motto: "NO, we CAN'T"

Seriously.. we need to differentiate ourselves much more in November.

Why are we "committing seppuku"?

by architek 2008-06-11 02:31PM | 0 recs

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