This is very similar to the plan from the Republicans in the House.
Overview
$430 billion dollars on tax cuts.
$114 billion for infrastructure projects.
$138 billion for extending unemployment insurance, food stamps and other provisions to help “Americans in need.”
$31 billion to address the housing crisis ($11 billion for a loan modification program,
$20.4 billion in tax incentives for home purchases, $50 million to temporarily increase loan limits for Freddie, Fannie and FHA)
Following are details of the proposal by John McCain of Arizona, John Thune of South Dakota, Richard Burr of North Carolina, Lindsey Graham of South Carolina, and Mel Martinez of Florida.
Tax Provisions:
* For one year, cut in half to 3.1 percent the payroll tax for all U.S. employees. Cost: $165 billion.
* Lower the 10 percent income tax bracket to 5 percent and the 15 percent bracket to 10 percent for one year. Cost: $60 billion.
* Slash the corporate tax rate to 25 percent from 35 percent for a year. For small businesses filing as individuals, their tax bracket would also go down to 25 percent from 35 percent. Cost: $50 billion.
* Offer in 2009 to homebuyers a tax credit of $15,000 or 10 percent of the purchase price, whichever is less. Cost: $20.4 billion.
Spending Provisions:
* Extend unemployment insurance benefits and food stamps through 2009 and eliminate taxes on unemployment benefits for the same time period. Cost: $48.15 billion.
* Use federal money to discourage mortgage servicers and lenders from executing home foreclosures. Cost: $11 billion.
* Grants to states to build and repair roads and bridges. $65 billion.
* Improve, repair and modernize Defense Department facilities. Order and/or repair equipment, vehicles, material and ammunition for combat troops. $17 billion.
* Grants to states to make investments in public transportation systems. $3 billion.
* Grants for airports to build new runways, install runway safety equipment and other infrastructure projects. Cost: $1.1 billion.
Other provisions:
* All spending programs would end three years after the legislation became law.
* To move toward reducing the budget deficit, after two consecutive quarters of more than 2 percent of inflation-adjusted gross domestic product growth, spending provisions from the stimulus package that has not been spent or obligated would be canceled. Additionally, there would be a 2 percent across-the-board spending reduction to help balance the budget by 2015.
* Establish commissions to review Social Security, Medicare and Medicaid.
Read the full GOP Senate Bill here.
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