Stimulus Package the Advantages and Disadvantages
The Advantages and Disadvantages of the Stimulus Package
Competition will be fierce for a piece of economic stimulus package pie. After all, this bail out is directly the result of a credit system in crisis from overextension of subprime lending. Too many American families are facing mounting piles of debt, job loss, and possibly the foreclosure of their home and business. Surveys of taxpayers show the expected uses of the tax rebate to be paying a bill/debt, beefing up a meager or depleted savings account, and spending it on a large item purchase. The U.S. federal government is issuing a tax rebate for most middle and low income Americans. Married couples receive the most at $1,200 dollars with a $300 dollar addendum per child. Individual tax filers receive $600 dollars and even those without a tax burden due to lack of income will receive up to $300 dollars in relief. It sums up to a considerable amount of disposable income available to raise the falling economy. The entire goal of the economic stimulus package is to encourage Americans to spend more money in small businesses. The majority of wholesale retailers are small businesses, privately owned with less than 20 employees. While this plan proves to be more advantages it still has its disadvantages for some Americans. President Obama has signed the $787 billion stimulus package into law with approximately 35% going towards tax cuts and the rest going towards stimulus spending. Just about everyone stands to benefit from the stimulus in some fashion in the short-term, but to a few demographics the opportunity to reap more gains than others are dim. Below I have listed a bulleted list of three groups of Americans who stand with an advantage or disadvantage from the current stimulus package.
1. Homeowners - Homeowners with a mortgage financed by either Fannie Mae or Freddie Mac are in luck because now, they can have their home loan modified into a, Government backed, 4% fixed rate mortgage.
Competition will be fierce for a piece of economic stimulus package pie. After all, this bail out is directly the result of a credit system in crisis from overextension of subprime lending. Too many American families are facing mounting piles of debt, job loss, and possibly the foreclosure of their home and business. Surveys of taxpayers show the expected uses of the tax rebate to be paying a bill/debt, beefing up a meager or depleted savings account, and spending it on a large item purchase. The U.S. federal government is issuing a tax rebate for most middle and low income Americans. Married couples receive the most at $1,200 dollars with a $300 dollar addendum per child. Individual tax filers receive $600 dollars and even those without a tax burden due to lack of income will receive up to $300 dollars in relief. It sums up to a considerable amount of disposable income available to raise the falling economy. The entire goal of the economic stimulus package is to encourage Americans to spend more money in small businesses. The majority of wholesale retailers are small businesses, privately owned with less than 20 employees. While this plan proves to be more advantages it still has its disadvantages for some Americans. President Obama has signed the $787 billion stimulus package into law with approximately 35% going towards tax cuts and the rest going towards stimulus spending. Just about everyone stands to benefit from the stimulus in some fashion in the short-term, but to a few demographics the opportunity to reap more gains than others are dim. Below I have listed a bulleted list of three groups of Americans who stand with an advantage or disadvantage from the current stimulus package.
1. Homeowners - Homeowners with a mortgage financed by either Fannie Mae or Freddie Mac are in luck because now, they can have their home loan modified into a, Government backed, 4% fixed rate mortgage.
References: Unknown. (March 19, 2008). Getting a Piece of the Economic Stimulus Package. Ecommerce, from http://www.articlesbase.com/ecommerce-articles/getting-a-piece-of-the-economic-stimulus-package-364189.html Petrone, M. (June 15, 2009) Obama 's Stimulus and the Fannie Mae and Freddie Mac Mortgage Modification Options, Ezine Articles, from http://ezinearticles.com/?Obamas-Stimulus-and-the-Fannie-Mae-and-Freddie-Mac-Mortgage-Modification- Miller, GE. (February 17, 2009). How Much Will You Benefit From the Stimulus Package? Mint.com., http://www.mint.com/blog/finance-core/how-much-will-you-benefit-from-the-stimulus-package/ Lott, Jr. J. R. (February 3, 2009). Obama 's Stimulus Package Will Increase Unemployment. FoxNews.com, from http://www.foxnews.com/story/0,2933,487425,00.html Lowen, L. (March 25, 2009). Jobless Benefits for Women in the Obama Stimulus Package. Linda 's Women 's Issues Blog, from http://womensissues.about.com/b/2009/03/25/jobless-benefits-for-women-in-the-obama-stimulus-package.htm Eyenga, V. (March 11, 2009). Stimulate Your Small Business With Obama 's Stimulus Package. Ezine Articles, from http://ezinearticles.com/?Stimulate-Your-Small-Business-With-Obamas-Stimulus-Package&id=2088808