American Recovery and Reinvestment Act of 2009 (H.R. 01) -- An opinion
The American Recovery and Reinvestment Act of 2009 is now in the House Appropriations. Here is the link to the full Bill. HR01
This document is 258 pages in length, but if you want to cut to the actual amount being doled out and to whom they are going, just slide down to page 32.
I've spent virtually the entire time reading through it and looking up what are apparently arcane references in order to understand just how the money is being spent and by whom. Wow. I am convinced more than ever this is merely a payback for his constituency and some bones, although rather good bones, tossed to others, such as the military; $3,750,000,000, for the construction of hospitals and ambulatory surgery centers, $600,000,000 shall be for training and recruit (Army) troop housing, $220,000,000 shall be for permanent party (Army) troop housing, and $100,000,000 shall be for child development centers(Army). There is more listed for the other branches.
But there are others that are curious. Digital-to-Analog Converter Box Program, $650,000,000 (the coupons) $650 million freaking dollars? (p.47) Are there still that many people that have not got their coupons yet? Are there that many freaking people that are receiving TV by rabbit ear antennas still? $400,000,000, for habitat restoration and mitigation activities. (p.48) Now there is $400 million spent that will stimulate the economy!
Starting on page 130 we start seeing some items that can work for a stimulus: $500,000,000 for grants to the States for adult employment and training activities, $1,200,000,000 for grants to the States for youth activities, including summer jobs for youth, $1,000,000,000 for grants to the States for dislocated worker employment and training activities, $500,000,000 for the dislocated workers assistance national reserve to remain available for Federal obligation through June 30, 2010, $50,000,000 for YouthBuild activities, which shall remain available for Federal obligation through June 30, 2010, $750,000,000 for a program of competitive grants for worker training and placement in high growth and emerging industry sectors. This funding will fall under President Clintons Workforce Investment Act of 1998 (‘‘WIA’’). We see other items of interest to a stimulus program through page 136.
Apparently, if i understand it correctly, there will be $800 million made available to Amtrak (p.219). On p.223, we note the Secretary of Transportation will be given additional funds of $1 billion "to make discretionary grants". An entry that looks somewhat troubling is found on page 230 and states, "up to $750,000,000 shall be awarded by competition to nonprofit entities or consortia of non-profit entities to provide community stabilization assistance. This sounds suspiciously tailor made for organizations like ACORN. Other programs such as HOME INVESTMENT PARTNERSHIPS PROGRAM ($1.5 billion), SELF-HELP AND ASSISTED HOMEOWNERSHIP OPPORTUNITY PROGRAM ($10 million), HOMELESS ASSISTANCE GRANTS ($1.5 billion) all sound like funding programs that led to this economic mess with sub-prime mortgages and mortgages going to people that couldn't afford them to start with.
My absolute favorite of any of the items listed would have to be the $50,000,000, to be distributed in direct grants to fund arts projects and activities which preserve jobs in the non-profit arts sector threatened by declines in philanthropic and other support during the current economic downturn. The starving artists bailout!
The oddest thing about calling this a stimulus program is the realization that only $92 billion of the $816 billion plan is going to be spent in FY09! President Obama said during his web address, ""In short, if we do not act boldly and swiftly, a bad situation could become dramatically worse." Not real fast here. Per the Director of the CBO, the remainder will be spent as follows: $225 billion in fiscal year 2010 (which begins on October 1), $159 billion in 2011, and by a total of $604 billion over the 2009-2019
period. There would be reduced revenues by $76 billion in fiscal year 2009, by $131 billion in
fiscal year 2010, and by a net of $212 billion over the 2009-2019
period.
In President Obamas metrics report he states a goal is to , "Spend out at least 75% of the package in the first 18 months after passage". This goal has not been met by the plan put forth. Tax cuts? The only "concrete" reference I have seen regarding any tax cuts is on Obamas web site where he states, "Obama
and Biden will restore fairness to the tax code and 95 percent of
workers the tax relief they need. They will create a new "Making Work
Pay" tax credit of up to $500 per person, or $1,000 per working family." But, that is basically a rehash of his campaign pledges. These are the only references I can find giving Americans a tax break, I can't find where anything concrete has gone forth from his office.
As an aside to the 95% tax cuts In real numbers, 60.7 million people who have no tax burden at all
will receive refunds from Obama, while only 33.8 million people, who
pay approximately 40 percent of income taxes, will get any kind of
refund. Twenty percent of taxpayers, who pay 87.5 percent of total
income taxes, will actually see after-tax income decline under Obama by
nearly two percent, according to the Center. By
using these refunds, Obama is able to claim that he is giving a tax cut
to 95 percent of households, although only 62 percent of households pay
any income taxes at all. The Tax Policy Center estimates that Obama’s spending proposals will be so
large that they effectively eliminate income taxes for 15 million
households, increasing the percentage of households that pay no taxes
from 37.8 percent to 48.1 percent.
This Act is great for long term investment in infrastructure and much of it is greatly needed, having been deferred for quit awhile now. It is a remarkable ability to satisfy a great many of his campaign promises. It serves quite well in rewarding his constituency. I'm not real convinced it is going to work as a stimulus bill in the short term. Very few people want to hear, "No one policy or program will solve the challenges we face right now, nor will this crisis recede in a short period of time."
I can be E-mailed at outrider@ohnoanotherconservativeblog.com if you have suggestions, questions, or would like to see a particular story written.
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