Senate Presents Economic Stimulus Plan
The economic stimulus plan announced by the US Senate includes $275 billion in tax cuts for small businesses and producers of renewable energy, as well as a payroll tax credit that would equate to a lower monthly withholding per paycheck.
The bill would also allow up to $2,400 in unemployment benefits to be claimed tax-free per applicant.
Also rolled into the package are tax incentives for first-time homebuyers and tax breaks for families paying college tuition.
See the US Economy Channel for ongoing developments.
The Senate plan would give $30 billion in tax incentives to producers of renewable energy, or $10 billion more than was approved yesterday by the House Ways and Means Committee, although it doesn’t include a $7.7 billion program to convert tax credits into grants. It also would allow small-business owners to exclude more of their profits from capital gains taxes and provide tax relief for forgiven corporate debt, provisions not in the House bill.
In addition to the tax cuts, the finance committee’s bill includes $180 billion in health and unemployment benefits and other spending to help states.