The Obama plan, how it will work.

How the Obama plan works, Feb. 1,2009

The withholding tax for most Americans earning up to $150,000 a year will be reduced resulting in higher net pay quickly. Higher net pay is disposable income spent quickly. Checks for net pay could go up $12-$13 a week. The total stimulus package is $819 billion. A full 33 percent or $275 billion will go into tax cuts. A full 90 percent or about 9.7 million of the total of 132 million tax payers in 2004 make less than $100,000.

Other provisions are; Aid to States, Infrastructure projects, Education, health care and alternative energy projects... All of these create jobs or protect existing jobs.

The remaining 66 percent or $ 544 billion will go into unemployment benefits adding a extra $25 a week. This is also disposable income which families will spend. A family of four that gets food stamps would get a extra $79 a month to spend on food. Billions of dollars will go directly to States to help pay for health Care and other expenses without raising State taxes. Aid to the States for education will help States to keep down property tax increases. Aid to States also prevents States from cuts in the States workforce. This keeps people working.

A $87 billion provision in the stimulus plan goes to help States with Medicare costs. The stimulus also creates $79 billion State fiscal stabilization fund to be used half in 2009 and half in 2010. This provides a buffer for the States in the long term. The stimulus also has $30 billion for infrastructure which is long overdue among Republicans who oppose the legislation and have for 8 years. Our roads and bridges are crumbling and every American knows that. Water projects, millitary building projects will also create jobs.

The stimulus also includes $ 140 billion in new spending on educations. Which includes. for school renovation $20 billion. $13 billion for two years on title I schools. Republicans have always opposed Federal spending on public education, that's why property taxes went up in every State. What good is it to reduce Federal taxes then increase State taxes by the same amount?. It's all taxes. When people buy a new home they always consider Taxes and Insurance.

Republicans want more tax cuts for the wealthy and less tax cuts for the working class, that has not changed in 30 years to my memory. Republicans want capital gains taxes eliminated so that the wealthy can take stock dividends as nontaxable income. Republicans also want no capital gains taxes on the profit from the sale of a house. This is not earned income. They do not work for this money.

This is a good plan. It is also a “main street” plan. We voted and Democrats won, this is exactly what we voted for and Republicans need to wake up to that fact. For seven of Bush's 8 years Republicans controlled Congress. Republicans caused this mess in the first place.