Monday, February 11, 2008

Economic Stimulus Proposals for 2008: An Analysis

"In response to fears of an economic downturn, legislators and the President have proposed economic stimulus packages. After negotiations with the Administration, the Recovery Rebates and Economic Stimulus for the American People Act of 2008 (H.R. 5140) was introduced and passed by the House on January 29. On January 30, the Senate Committee on Finance reported the Economic Stimulus Act of 2008, which contains provisions not included in the House bill, as well as elements that are similar. The Senate committee bill is set for consideration on the Senate floor. The estimated budget cost of the House bill is $145.9 billion for FY2008 and $14.8 billion for FY2009, and $117.2 billion over 10 years. The Senate Finance Committee bill's estimated budget cost is $158.1 billion for FY2008 -- about 8% higher than H.R. 5140 -- and $155.7 billion over 10 years. The largest provisions in both bills (in terms of budgetary cost) are a tax rebate for individuals and business tax provisions. Both bills contain these provisions, but differ in their details." Source: Congressional Research Service

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