Today, President Obama signed into law the American Recovery and Reinvestment Act of 2009. The “stimulus bill” represents the latest and largest effort by the federal government to boost the deteriorating economy. (For details of all efforts to date, see www.usbudgetwatch.org/stimulus).
The bill will cost an estimated $787 billion over ten and a half years, including $501 billion in increased spending, and $286 billion in tax cuts. The larger provisions include a $400 per person “Making Work Pay” tax credit, a one–year patch for the Alternative Minimum Tax (AMT), an expansion of food stamps and unemployment benefits, funding for infrastructure projects, increased spending on health care and education, and additional aid to states and individuals.