President Obama is urging the quick passage of his $816 billion economic stimulus plan. According to a news report, Obama told reporters that the nation is at a “perilous moment” that will require quick action and immediate decisions.
The economic stimulus plan is the first major test of Obama’s presidency. Many believe that how he handles this crisis will set the tone for his entire four year term. The plan includes $550 billion in spending and about $275 billion in tax cuts that experts hope will spur the economy and help those directly impacted. The $550 billion would be spent on health care, unemployment claims, food stamps and other programs that benefit those struggling during the economic downturn.
Some Republicans say the plan has too few tax cuts and too much spending. “In terms of the type of tax relief that is in the bill, there’s less than five percent that is really affording business an incentive to get off the sidelines and start putting their capital to work again,” Republican Minority Whip Eric Cantor told CNBC. Although Republicans lack the numbers to defeat the bill, they are pushing for reduced spending. Democrats removed millions in spending that would have gone to funding contraceptives for state programs as well as a $200 million earmark to revamp the National Mall, the place where Obama was inaugurated last week.
According to reports, the stimulus package includes $60 billion for new power grids, $41 billion to modernize schools, $30 billion on highway construction and $6 billion to improve rural access to the Internet. Obama wants to sign the stimulus plan into law by the middle of February.