Stimulus bill deal reached in Senate

The senate has finally stopped bickering over the stimulus bill, according to reports. The Review-Journal [Front Page] reports reported on February 7 a comparison of some of the provisions in the House and Senate versions:

  • House: Tax credit of $500 per worker ($1,000 per couple) for 2009 and 2010. Individuals making more than $75,000 ($150,000 per couple) would receive reduced amounts. Senate: The credit would phase out quicker for families making more than $150,000.
  • Direct one-time cash payments. House: $450 to SSI  recipients. Senate: $300 to Social Security and SSI recipients, and some veterans.
  • Expanded Earned Income Tax Credit for families with at least three children.
  • $2,500 college credit. House: The credit is phased out for couples making more than $160,000. Senate: Reduces the amount refunded to families that pay no taxes.
  • First-time homebuyer credit, currently $7,500 but must be paid back if home sold within three years. House: Repeals a requirement that it be paid pack. The credit is phased out for couples making more than $150,000. Senate: Doubles the credit to $15,000.
  • Home energy credit for projects reducing energy use up to $1,500.
  • Exclude from taxation the first $2,400 a person receives in unemployment compensation.
  • Make interest payments on auto loans and sales tax on cars deductible.

Initial estimates indicate about $1.3 billion will come to Nevada from the stimulus bill, which includes $509 million for education and $220 million for highway construction. But Nevada Senate Majority Leader Steven Horsford and Assembly Speaker Barbara Buckley say the Nevada Legislature must add $442 million to Governor Gibbons’ proposed higher education budge and $116 million to the public school budget to qualify for the stimulus funds.

However, to qualify for the stimulus, Nevada’s spending on education must rise because the stimulus plan prohibits grants to states whose school spending is less than that during the 2005-06 fiscal year. That is referred to as “maintenance of effort” by the states.

The Senate version of the stimulus bill provides a provision for the secretary of education to issue waivers for states that cannot meet the “effort” requirement. An aide to Senator Harry Reid said it is doubtful Nevada would qualify for the waiver  because it is “going the other direct and cutting back on education,” referring to Governor Gibbons’ proposal to cut the Nevada education budget by 35%.

Related posts:

  1. The Stimulus for Nevada
  2. Ensign and Reid differ on stimulus bill amendment
  3. Fact Check: Republican claims of Democrats slipping in earmarks in Stimulus Bill for frivolous projects aren’t true.
  4. Cap on corporate executive pay not in the stimulus?!!!
  5. Nevada’s Senate upholds Governor Gibbon’s Veto

About Featheriver

Born and raised in Oklahoma. Improved in California. Out to pasture in Nevada. Born in 1933, Korean War Vet in USAF. Occupation: Criminal Law and Torts. Retired California Lawyer. Now live in Pahrump, Nye County, Nevada.
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One Response to Stimulus bill deal reached in Senate

  1. According to the CBO, the stimulus bill will actually hurt the economy in the long run. However, there is the possibility it will stimulate illegal immigration. In addition to providing up to 300 thousand construction jobs for illegal aliens, the bill will bail out irresponsible states like California. This will allow them to avoid dealing with one of the primary reasons they have a budget deficit. That reason is the extensive and expensive social net they have extended to illegal immigrants. Obama’s stimulus will stimulate illegal immigration

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