http://www.forbes.com/feeds/afx/2009/02/06/afx6020871.html"WASHINGTON, Feb 6 (Reuters) - Democratic and Republican senators are close to agreement on a $780 billion economic stimulus package that would include 42 percent tax cuts and 58 percent new government spending, Democratic Senator John Kerry said on Friday.
'It appears as if there's a deal,' he told reporters. 'Forty-two percent of this is tax cuts ... the differential is the spending. It's a good balance.' "
FINANCE COMMITTEE QUESTIONS FOR THE RECORD
United States Senate
Committee on Finance
Hearing on
Confirmation of Mr. Timothy F. Geithner to be
Secretary of the U.S. Department of Treasury
January 21, 2009
http://finance.senate.gov/sitepages/leg/LEG%202009/012209%20TFG%20Questions.pdfpage 73
"...5. How can you argue that many provisions of the stimulus bill will have any
appreciable simulative effect? Which ones?
A key measure of President Obama’s American Recovery and Reinvestment Plan is
that it should save or create at least 3 million American jobs by the end of 2010.
Proposals that create and save jobs have a definite stimulative effect.
The elements of the President’s proposal that are related to such items as school
repair, infrastructure and energy will likely have job growth in the manufacturing and
construction industries. Proposals, such as the middle-class tax cut and fiscal relief to
states are likely to help save or create jobs in all sectors of the economy.
When then-President-elect Obama met with the bipartisan Congressional leadership,
he said he wanted 40% of the “stimulus” package to be tax relief. The package
unveiled by the House allocates only 32% to tax cuts. And even there, a big portion
of the tax cuts are really spending – and will be scored as such by Congress – because
they provide money through the tax code to people who do not pay income taxes.
These are the “refundable credits.”
6. When then-President-elect Obama met with the bipartisan Congressional
leadership, he said he wanted 40% of the “stimulus” package to be tax relief.
The package unveiled by the House allocates only 32% to tax cuts. And even
there, a big portion of the tax cuts are really spending – and will be scored as
such by Congress – because they provide money through the tax code to people
who do not pay income taxes. These are the “refundable credits.”
What portion of the “stimulus” package will be dedicated to actual tax cuts i.e.
revenue reductions?
The answer partly depends upon the legislative process. As you know, there are
currently two bills that are moving through the Congress. At this point, it is unclear
what the final product will be. President Obama has proposed both spending and
revenue proposals that he feels provides the right combination to bring growth back
to this economy. Of course, if confirmed, I look forward to working with the
Committee as these bills proceed.
7. Will you work with the Senate Finance Committee to increase the tax relief
potion to equal 40% of the package?
It is important to consider the totality of the plan. As you know, President Obama has
proposed significant tax reductions. If confirmed, I will work with you and the entire
Finance Committee to find the optimal mix of spending and revenue provisions that
provide the needed growth and recovery to the economy...."
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