Excuse Me...You Forgot To Give Me My Change

I have touched on the Obama American Reinvestment and Recovery Act several times now and most recently in "Cheer Leading" I suggested we pay close attention for differences in the way our new president ran his administration and tried to move bills through the system. As of now it looks like there is literally no difference between the Obama approach and the Bush approach, the cast has just changed. Quickly lets compare:

Bush Administration $700 Billion Dollar Bailout

1) There is ferocious Bi-Partisan fighting leading up to the vote on the bill
2) The bill did not pass the House
3) The Bush administration and the media used fear mongering to get the bill voted on in the Senate as an amendment to a previously passed bill.
4) Prior to the vote, President Bush went to the public and addressed the nation on prime time TV to stress the urgency in passing the bill. During his speech he speaks of the dire consequences of not passing the bill.
5) The bill was voted on again in the Senate where it passed, and was sent to the House where it, on it's second time around, also passed creating the TARP.

Obama Administration $838 Billion Dollar Economic Recovery Act

1) There was ferocious Bi-Partisan fighting leading up to the initial vote on the bill.
2) The bill is brought to the House but no Republicans vote for it, dealing the Obama administration's desire for bi-partisanship a major blow.
3) A new version of the bill was written and brought to the Senate as fears the original bill will not pass the Senate in its original form are realized
4) The Obama administration and the media use fear mongering to try and swing Republican votes in the Senate.
5) President Obama went to the public and addressed the nation on prime time TV to stress the urgency in passing the bill. During his speech he speaks of the dire consequences of not passing the bill.
6) The Senate votes on the bill and it passes by 1 vote.
7) The House version of the bill is all but forgotten, the Senate version must go to the house and America awaits it's fate.

So what is America waiting for in the Economic Recovery Act?

I recognize this will get long but I want to highlight certain things that OUR President and OUR Congress have decided are required in "Emergency" fashion to save our economy. Overall this bill, just as the TARP bill, will not recover or solve anything. However, some items included within it are socially useful as money will need to be appropriated to them eventually anyway. I would argue though that such allocations should not be happening during the worst economic crisis in history and that most of the items in the bill are absolutely egregious and unrelated to our economy. Also as you read please keep in mind my old post on how much a billion is and try not to get too angry:

General Spending Provisions

1. $40 billion to provide extended unemployment benefits through Dec. 31, and increase them by $25 a week; $16.5 billion to increase food stamp benefits by 12 percent through fiscal 2011 and issue a one-time bonus payment; $3 billion in temporary welfare payments. Before I begin remember the name of this bill...Economic Recovery and Reinvestment Act...$16.5 Billion to food stamps? A one time payment of $3 billion in welfare payments? Really? (Lets keep a running total: $19.5 Billion)

2. $17 billion to give one-time $300 payments to Social Security recipients, poor people on Supplemental Security Income, and veterans receiving disability and pensions. $17 Billion to Social Security recipients, poor people, and Veterans equaling $300 a person...once. ($36.5 Billion)

3. $20 billion to subsidize health care insurance for the unemployed under the COBRA program; $87 billion to help states with Medicaid; $22 billion to modernize health information technology systems; $10 billion for health research and construction of National Institutes of Health facilities. $87 Billion to Medicaid? I thought this was an economic bill? ($123.5 Billion)

Tax Provisions

1. As written in the Original House Bill - 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.

Now amended in the Senate Bill -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. $145 Billion in tax credits (recognizable by April 15, 2010 keep in mind) in the amount of $500 and $1000 dollars. How does this help us now? People making more than $70,000 receive even less or nothing at all and people paying zero taxes are now eligible even though they won't be eligible to file a return until 2010, see Change You Can Count On. ( $268.5 Billion)

2. In the original House Bill - $18.3 billion to give greater access to the $1,000 per-child tax credit for the working poor 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.

As amended in the Senate sets a new income threshold of $8,100 to receive any portion of the credit, reducing the cost to $7.5 billion. How many babies can you have? Octuplets mother of 14 Nadya Suleman if you are reading call your representatives and thank them you now get $14,000 for being irresponsible! ($286.8 Billion)

3. $4.7 billion to increase the earned-income tax credit — which provides money to the working poor — for families with at least three children. Nadya don't hang up! Thank them again! Now you get even more! ($291.5 Billion)

So the Economic Recovery and Reinvestment Act of 2009 officially authorizes $291.5 Billion of $838 Billion (35%) as money available only to the poor. I'm all for social responsibility when and where it's warranted, however in the midst of the worst economic crisis in history this is quite simply unacceptable. What is wrong with you Obamanation?! 35% of this bill has nothing to do with the economy or reinvestment! This bill is not for the working class, it is not for reinvestment, and it will not save America. Plain and simply put this is a welfare bill and there is nothing else in this proposed law that will help working America.

Don't lie to us Obama! You're no different than the Bush administration, in fact you might be worse! At least they attempted to put $700 Billion back into the economy (although it didn't work). That plan although heinous had at least a small chance of making some kind of difference. For crying out loud, how can you tell us this bill needs to be passed immediately to avoid an economic depression and stop an emergency of epic proportions when it will do literally nothing for our future or economy! Why are you encouraging irresponsible people to have more kids? Why are you taking tax rebates away from people with jobs who are paying taxes to give them to people who pay less taxes? Why are you wasting our money on non solutions and continuing to spend us into oblivion?

I and everyone else in this country want our change back. (PS I wrote in Ron Paul)