AMERICAN ISSUES PROJECT

Chances are if you are reading this, you are familiar with the American Recover and Reinvestment Act of 2009. It is the shining star of the Barack Obama administration in its first hundred days or so. The Act includes federal tax relief, expansion of unemployment benefits and other social welfare provisions. It also contains spending in the areas of health care, education, and state infrastructure, including money designated solely for energy.

Each week I will be breaking down a different part of the stimulus bill, so that we the people, can better understand what we should be getting, what in fact we are getting, and what we are being stiffed on. That last one will probably come up more often then not.

This week we’ll start at the top, the most important item on the Stimulus Bill’s agenda, and that is tax relief for individuals. These are the tax breaks designated and thought up to help our economy in this recession of ours.

First, $116 billion dollars has been designated to start a new payroll tax credit of $400 per worker and $800 per couple in 2009 and 2010. Phase-out begins at $75,000 for individuals and $150,000 for joint filers. Now I don’t know about you but I didn’t get a credit of $400 dollars when I filed my taxes. My parents didn’t get a credit of $800 dollars when they filled their taxes either. I guess we’ll simply have to take the wait and see approach on this one. I mean after all a hundred days isn’t proper time to judge this bill.

Secondly, the federal government decided to take $70 billion dollars and put it towards a one year increase in the AMT, the alternative minimum tax. Basically this tax doesn’t affect you unless you are making upwards of $150,000 dollars. I don’t know about any of you “average Americans” out there but I don’t make that kind of coin. Do you? I don’t think many of us do.

The problems so far is it seems like these credits and these “tax breaks” aren’t affecting the middle class, which are the people hurt most by the economy right now. The rich will have money, the well off will be well off. But when Mom and Dad lose their jobs can they afford a proper education for little Tommy and Susie. The answer is no.

Something needs to be done about the middle class, and in the first two points of the Stimulus Bill, nothing is done at all.

The government is spending too much, that’s the problem. They are spending all this money and not offering the middle class relief. That’s a shame. Hopefully this Stimulus Bill can kick in long term and start solving some of the problems we face as a country. Until then I’ll be here trying to walk you along step by step.

Good luck and God’s speed America.