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To all Liberals and Conservatives:

Review the following excerpts on the ARRA then answer the question as to whether we need more Tax Reductions then go to my other post and answer whether his spending is too much. Visit my other post on "Presiden Obama's Spending...Is it too much?" here: http://patrick.net/?p=17065

As of the end of August 2009, 19 percent of the stimulus had been outlaid or gone to American taxpayers or business in the form of tax reductions.

The American Recovery and Reinvestment Act of 2009, abbreviated ARRA, is an economic stimulus package enacted by the 111th United States Congress in February 2009. The Act of Congress was based largely on proposals made by President Barack Obama and was intended to provide a stimulus to the U.S. economy in the wake of the economic downturn. The measures are nominally worth $787 billion. The Act includes federal tax cuts, expansion of unemployment benefits and other social welfare provisions, and domestic spending in education, health care, and infrastructure, including the energy sector.The Senate passed the bill, 60-38, with all Democrats and Independents voting for the bill along with three Republicans.

Taxes ($275 billion)

New tax credit
House— About $145 billion for $500 per-worker, $1,000 per-couple tax credits in 2009 and 2010. For the last half of 2009, workers could expect to see about $20 a week less withheld from their paychecks starting around June. Millions of Americans who don’t make enough money to pay federal income taxes could file returns next year and receive checks. Individuals making more than $75,000 and couples making more than $150,000 would receive reduced amounts.
Senate — The credit would phase out at incomes of $70,000 for individuals and couples making more than $140,000 and phase out more quickly, reducing the cost to $140 billion.
Conference- Tax Credit reduced to $400 per worker and $800 per couple in 2009 and 2010 and phaseout begins at $75,000 for individuals and $150,000 for joint filers. Note retirees with no wages get nothing.[27]

Alternative minimum tax
House — No provision.
Senate — About $70 billion to prevent 24 million taxpayers from paying the alternative minimum tax in 2009. The tax was designed to make sure wealthy taxpayers can’t use credits and deductions to avoid paying any taxes or paying at a far lower rate than would otherwise be possible. But it was never indexed to inflation, so critics now contend it taxes people it was not intended to. Congress addresses it each year, usually in the fall.
Conference - Includes a one year increase in AMT floor to $70,950 for joint filers for 2009.[27]

Expanded child credit
House — $18.3 billion to give greater access to the $1,000 per-child tax credit for low income workers in 2009 and 2010. Under current law, workers must make at least $12,550 to receive any portion of the credit. The change eliminates the floor, meaning more workers who pay no federal income taxes could receive checks.
Senate — Sets a new income threshold of $8,100 to receive any portion of the credit, reducing the cost to $7.5 billion.
Conference - The income floor for refunds was set at $3,000 for 2009 & 2010.[28]
Expanded earned income tax credit
House — $4.7 billion to increase the earned income tax credit — which provides money to low income workers — for families with at least three children.
Senate — Same.

Expanded college credit
House — $13.7 billion to provide a $2,500 expanded tax credit for college tuition and related expenses for 2009 and 2010. The credit is phased out for couples making more than $160,000.
Senate — Reduces the amount that can be refunded to low-income families that pay no income taxes, lowering the cost to $13 billion.

Homebuyer credit
House — $2.6 billion to repeal a requirement that a $7,500 first-time homebuyer tax credit be paid back over time for homes purchased from Jan. 1 to July 1, unless the home is sold within three years. The credit is phased out for couples making more than $150,000.
Senate — Doubles the credit to $15,000 for homes purchased for a year after the bill takes effect, increasing the cost to $35.5 billion.
Conference - $8,000 credit for all homes bought between 1/1/2009 and 12/1/2009 and repayment provision repealed for homes purchased in 2009 and held more than three years.[28]
Home energy credit
House — $4.3 billion to provide an expanded credit to homeowners who make their homes more energy-efficient in 2009 and 2010. Homeowners could recoup 30 percent of the cost up to $1,500 of numerous projects, such as installing energy-efficient windows, doors, furnaces and air conditioners.
Senate — Same.
Conference - Same;
Unemployment
House — No similar provision.
Senate — $4.7 billion to exclude from taxation the first $2,400 a person receives in unemployment compensation benefits in 2009.
Conference—Same as Senate
Bonus depreciation
House — $5 billion to extend a provision allowing businesses buying equipment such as computers to speed up its depreciation through 2009.
Senate — Similar.

Money losing companies
House — $15 billion to allow companies to use current losses to offset profits made in the previous five years, instead of two, making them eligible for tax refunds.
Senate — Allows companies to use more of their losses to offset previous profits, increasing the cost to $19.5 billion.
Conference - Limits the carry-back to small companies, revenue under $5 million [29]

Government contractors
House — Repeal a law that takes effect in 2011, requiring government agencies to withhold three percent of payments to contractors to help ensure they pay their tax bills. Repealing the law would cost $11 billion over 10 years, in part because the government could not earn interest by holding the money throughout the year.
Senate — Delays the law from taking effect until 2012, reducing the cost to $291 million.
Energy production
House — $13 billion to extend tax credits for renewable energy production.
Senate — Same.
Conference - Extension is to 2014.

Repeal bank credit
House — Repeal a Treasury provision that allowed firms that buy money-losing banks to use more of the losses as tax credits to offset the profits of the merged banks for tax purposes. The change would increase taxes on the merged banks by $7 billion over 10 years.
Senate — Same.
Bonds
House — $36 billion to subsidize locally issued bonds for school construction, teacher training, economic development and infrastructure improvements.
Senate — $22.8 billion to subsidize locally issued bonds for school construction, industrial development and infrastructure improvements.

Auto sales
House — No similar provision.
Senate — $11 billion to make interest payments on most auto loans and sales tax on cars deductible.
Conference - $2 billion for deduction of sales tax, not interest payments phased out for incomes above $250,000.[30]

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