Tags: congress | more | stimulus

Congress May Extend Stimulus by Almost $100 Billion

Friday, 31 Jul 2009 12:54 PM

By Dave Eberhart

February’s $787 billion stimulus jolt to the economy has proven so addictive that there is now pressure to extend some programs to the tune of another projected $88 billion, according to a report in The Hill newspaper.

A few measures under consideration:

  • Democrats are aiming to extend unemployment and health benefits - now set to expire at the end of the year. These benefits made up about $65 billion of the February stimulus.

  • Both Republicans and some Democrats are calling for an extension of a tax break expiring at the end of the year that permits businesses to write off losses. The provision cost $15 billion in the February stimulus. The so-called “carryback” provision permits businesses to carry back losses to past tax returns - allowing them to free up capital for investments.

  • Patrick Tiberi, R-Ohio, is touting an extension of expiring tax credits for first-time homeowners and car buyers to the combined tune of $8.3 billion. The National Association of Realtors has jumped on that bandwagon, pushing to extend into 2010 the $8,000 tax credit for new home buyers - set to expire at the end of November – and further offering it to all home buyers.

  • Some Democrats would also extend federal subsidies for healthcare coverage to the unemployed under the COBRA program. The subsidies that reduce COBRA premiums by 65 percent cost some $25 billion.

    With an unemployment rate at a 26-year high, Rep. Maxine Waters, D-Calif., a supporter of the federal subsidy, told The Hill, “It does not appear that there is any real hope in sight for new job creation and for jobs for the people that need them perhaps the most. So we’re going to have to do something.”

    Meanwhile, with the stimulus proving very slow as a job creation tool, President Barack Obama’s poll numbers continue to slip, according to a report in the Chicago Sun-Times.

    In a speech this week, Obama took an optimistic stance: "We have stopped the freefall. The market's up and the financial system is no longer on the verge of collapse. So there's no doubt that things have gotten better."

    Buttressing the President’s optimism, a Federal Reserve survey of 12 regions of the country found the recession was easing or economic activity was stabilizing in June and July, raising hopes that the recession is indeed losing steam.

  • © 2015 Newsmax. All rights reserved.

    Around the Web
    Join the Newsmax Community
    Please review Community Guidelines before posting a comment.
    >> Register to share your comments with the community.
    >> Login if you are already a member.
    blog comments powered by Disqus
    Zip Code:
    Privacy: We never share your email.
    Hot Topics
    Follow Newsmax
    Like us
    on Facebook
    Follow us
    on Twitter
    Add us
    on Google Plus
    Around the Web
    Top Stories
    You May Also Like

    US Official: Paris Market Terrorist Had Camera to Video Attack

    Friday, 30 Jan 2015 23:05 PM

    Amedy Coulibaly, the terrorist who killed four people as part of terrorism attacks that rocked Paris earlier this month, . . .

    Donald Trump: 'I Will Take Full Credit' for Romney Dropping Out

    Friday, 30 Jan 2015 22:11 PM

    A week ago, just before and during the Iowa Freedom Summit, real estate mogul Donald Trump was quick to call out two-tim . . .

    Report: Hezbollah Tunnels May Make Gaza's Look Like 'Child's Game'

    Friday, 30 Jan 2015 21:58 PM

    After uncovering a Hamas underground tunnel network in last summer's Gaza war, the Israeli military has turned its atten . . .

    Most Commented

    Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

    America's News Page
    ©  Newsmax Media, Inc.
    All Rights Reserved