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CONGRESS AGREES ON STIMULUS PLAN
Thursday, January 24th, 2008 -- 2:13 pm
Posted by Riley Hebert-News Director
The plan agreed upon in principle on Thursday reportedly calls for targeted tax rebates of $300 to $1,200, bonuses for children and incentives for expanding businesses.
U.S. Rep Ron Kind (D-La Crosse) the stimulus plan could be a "nice boost" to the struggling economy.
"That's what we're trying to accomplish: pass something that is timely, targeted and temporary that will give a spark to the economy," Kind says. "Hopefully that will prevent a deeper economic slowdown or recession."
Reports say the checks will be targeted to those making under $75,000 per year with extra money for those with children. Analysts say that will lead to the biggest "bang for the buck".
"These are the families that desperately need it and they will spend that money as soon as they get it. That's the whole objective of the stimulus package," Kind reasons.
Wealthy Americans would be more likely to save the money, or pay down debt, which wouldn't improve the economy, Kind says.
However, Kind says experts say the most efficient way to stimulate the economy might be through food stamps or extended unemployment benefits, but the Bush Administration was adamantly opposed to those methods.
Democrats conceded the point to prevent a lengthy debate, Kind says.
But the Congress is caught between a rock and hard place: they have to borrow the money from foreign countries, or print off their own money, which could lead to inflation.
"That's why I was very clear in my proposals that this had to be temporary so we don't add to the fiscal debt of our nation."
Kind says cutting federal spending would negate the benefit of the stimulus.
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