Obama Stimulus Package Might Be Too Little to Late for Californians

Obama Tax Plan a Drop in the Bucket?

Sylvia Cochran
The Obama stimulus package is the response to the epic bailout bill big business received last year. Some hope that it will find expression in a round of Obama stimulus checks; whereas others find that an updated Obama tax plan might be the best way to go. In the absence of definite Obama stimulus package details, conjecture is running wild, and this morning's scuttlebutt is not exception.

The Washington Post informs readers that while the details of the Obama stimulus package are still a bit sketchy, the GOP is asked for input -- most likely in the hopes of garnering the necessary votes to get the needed votes for the stimulus plan and then the stimulus checks into the hands of taxpayers. The magic number that is in everyone's mind and in print is "$300 billion in tax cuts," and an additional $500 billion to be used for the creation of jobs.

What does this Obama tax plan translate into if you are a working family? The short answer is that you receive a tax credit of about $1,000. If you are a single person, you are looking at $500. It is doubtful that these kinds of amounts - in today's fiscal climate - are little more than a few drops in the bucket, and the attention really needs to be turned to the remaining funds that are being committed to the Obama stimulus package.

It is interesting to note that Europeans are favorably disposed toward the Obama stimulus package details. Reuters reports that it is the Obama stimulus package which is actually halting the descent of the American dollar when compared to the Euro and as such there is "hope" and "change" even on European shores.

It is unclear if this is truly because European economic powers recognize the Obama stimulus plan as potentially highly successful or if it is simply the fact that the soon-to-be American president is stepping up and doing something that has more than a snowball's chance of succeeding.

On paper the Obama stimulus package holds a lot of promise, but it is questionable if this actually trickles down to Main Street America. Take for example Los Angeles: vacant office space is starting to become a problem for real estate developers who got out of the game too late. Small companies are folding, and independent contractors providing home construction and handyman services are going under. Fast food joints are closing up, and subsequently hole-in-the wall vendors of t-shirts and other goods are suffering and also closing up.

As strip malls are beginning to turn into ghost towns in North Long Beach and surrounding areas, there is the question if a tax credit of $1,000 per working family is really going to stimulate the economy or simply keep the repo man at bay for another round of late payment negotiations.

Sources: http://www.washingtonpost.com/wp-dyn/content/article/2009/01/05/AR2009010502752.html; http://uk.reuters.com/article/marketsNewsUS/idUKN0533194720090105;

Published by Sylvia Cochran - Featured Contributor in Automotive, Politics, Travel and Lifestyle

Sylvia Cochran works out of sunny Southern California and has been freelance writing -- full-time -- since 2005. SEO-optimized Internet copy includes news analysis, political Op/Ed and parenting as well as a...   View profile

13 Comments

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  • Lisa Curcio 3/18/2009

    =)

  • Ashley Portell 1/19/2009

    A drop in the bucket or more than enough for me right now and from what I read, those who aren't qualified for the first set of stimulus checks and deposits will get one at a later time. I know a few people who weren't qualified last year were pretty upset for not getting one. But I had to tell one that she hadn't worked and was living off of disability checks and getting paid from our state (wyoming) to go to school and look for work. She's still getting paid becuase she hasn't looked for work. So I can see why she didn't get one last time. And this is just the start. There's alot to work with in getting certain aspects corrected in USA. And our taxes are coming back to us.

  • Susan Anderson 1/10/2009

    great info :)

  • 3lilangels 1/7/2009

    Great info to know, well done!

  • jpsixbear 1/7/2009

    I'll take whatever help I can get, poor Obama having to clean up 8 years of mess. Thanks for the thought provoking piece

  • James Raider 1/6/2009

    Where is outrage over responsibility for the recession now that facts are clear in the rearview mirror?

    http://pacificgatepost.blogspot.com/2009/01/democrat-responsibility-for-economic.html

    It was evident then, it is even more evident now. Yet no feet are being held to the fire. Can we assume Madoff arrived just in time to take the brunt of it, deflecting all attention from where it should be focussed?

  • Carla Boner 1/6/2009

    Great information to have, thanks.

  • A. Guck 1/6/2009

    I agree. A $1,000 check is not going to help much in the way of the economy. As you mentioned at the end...it will just keep the repo man at bay a little longer...probably not in time for the job creation to take place....very disturbing.

  • Ronni Dee 1/6/2009

    Interesting. I heard that their is more talk of an immediate payroll tax cut rather than a round of checks because it will put 'more money in Americans pockets faster'. Unfortunately, I don't see the extra $10 a month in my paycheck making a difference in the economy, or my lifestyle. Hopefully Obama can figure out exactly what will, or won't work, and fast, before more small business go under and more people lose their jobs. (okay ill stop griping now on your comment page) Nice job. :)

  • Angela Tague 1/6/2009

    Interesting insight, and well writen. Thank you.

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