The president didn’t go into detail about how much many of the items in his speech will cost. Here’s a breakdown of what we know.
1. New infrastructure investments -- $50 billion
What’s the difference between this stimulus spending and the billions in the pipeline? This money will be allocated in different ways, a senior administration official says, not based on state-by-state spending or traditional infrastructure earmarks, but based on judgments about where the best projects are.
Why more infrastructure spending than what they thought was necessary in February when they passed the stimulus? Because “we’ll have substantial joblessness for quite some time.”
2. Up to $10 billion for weatherization
This would create new incentives for consumers who invest in energy efficient retrofits in their homes, and expand existing incentives for businesses that invest in energy efficiency and create clean energy manufacturing jobs.
3. Small businesses
The administration says the way to get small businesses to grow is to encourage them to hire, encourage them to grow, and address their ability to get credit.
They will tackle these issues through:
A. INCENTIVES TO HIRE • They will work with Congress on a new tax cut for small businesses to encourage hiring in 2010. No price tag yet.
B. INCENTIVES TO EXPAND/START SMALL BUSINESS -- • $20 billion to allow businesses to take tax take write-offs sooner for new purchases such as equipment. • For one year eliminating the tax on capital gains from new investments in small business stock. Hundreds of millions of dollars. • Extending a provision in the Stimulus bill that allows small businesses to immediately expense up to $250,000 of qualified investment. No price tag yet.
C. GETTING CREDIT TO FLOW • Eliminating fees and increasing guarantees for small businesses that borrow through major SBA programs in 2010. No price tag yet. • Using TARP funds to support small business lending. No price tag yet.
And hey, what about using the excess TARP to reduce the deficit? They plan on doing that – tens of billions worth, up to $100 billion.