|
|
| |
| Wed, Aug. 20, 2008 |  |
 |
|
||
| |
Arkansans react to Bush's proposed economic stimulus plan Wednesday, Jan 23, 2008 Arkansas News Bureau LITTLE ROCK - Arkansans could use the help that a proposed federal economic stimulus package would offer, but only if it were structured to benefit low-income taxpayers the most, family advocates said Tuesday. Details of the $145 million plan President Bush proposed this week are still being worked out. The president met with congressional leaders Tuesday and has said he is open to a broader plan than his initial proposal, which included tax rebates of up to $800 for individuals and up to $1,600 for couples. Bush's plan calls for "bonus depreciation," which would allow companies to deduct 50 percent of business investments made this year, and the president supports helping small businesses with more generous write-offs on equipment purchases. The heads of two advocacy groups for children, families and low-income individuals both said they supported a plan to stimulate the economy but were skeptical of Bush's proposal. "We need to hear more, but from what I've heard, I'm really not impressed by it," said Maxine Nelson, chairman of the Arkansas chapter of the Association of Community Organizations for Reform Now. Nelson said she was concerned the plan would not benefit lower-income families, whom she said needed the help the most. She suggested an earned income tax credit increase and higher unemployment payments. Rich Huddleston, executive director of Arkansas Advocates for Children and Families, cited research by the nonprofit Center on Budget and Policy Priorities that suggested lower-income families would not significantly benefit from the president's plan. "I think the president's proposal is the wrong way to go about (stimulating the economy,)" Huddleston said. "I think the research is pretty clear that if you're in a recession and you want to stimulate the economy, you put the money in the hands of the folks who are most likely to spend it quickly, and that's low- and middle-income families who are struggling to get by week to week." Richard Weiss, Arkansas' chief fiscal officer, said the state, which historically has been insulated from the immediate effects of a national economic downturn, has felt the effects of recent economic conditions in slowing sales tax collections, rising unemployment and a slowdown in hiring and filling jobs. "I think we're seeing it more and more as we get further into the year," said Weiss, director of the state Department of Finance and Administration. "These are all indications of businesses pulling back some, but it's all pretty preliminary at this point." Without the specifics of a federal economic stimulus package, Weiss said it would be unclear how such a plan would benefit the state. "I'm not quite sure what to think on that at this point," he said. "How much of a help would that be or how long term of a help would that be? Surely (tax rebates) would help with some of the fuel costs that everybody is faced with." As for relief for businesses, Weiss said "clearly small businesses would be the ones who would need help" more than large corporations. |
