 |
|||||
|
American Recovery and Reinvestment Tax Act of 2009 The American Recovery and Reinvestment Tax Act of 2009 signed into law on February 17th is intended to stimulate economic development through tax reductions/credits and funding for a wide range of programs. It is important to note that the $787 billion value advertised for the Act does not equal $787 billion in new spending. In reality, much of the money to be 'spent' is merely money that the federal government won't receive because of reductions in taxes. A lower tax burden may result in more spending by businesses and individuals, which may stimulate economic development on some level. For individuals with high debt, the tax savings will likely be spent on paying down credit card bills. $27 billion will go toward extension of unemployment benefits. $87 billion will to go toward a temporary bump in federal funding for state Medicaid, which will help reduce state budget shortfalls and help sustain the medical industry. Some of the programs are simply funding increases to existing government agencies. Other programs will create new business opportunities through grants and tax credits. Over 200 economists publicly opposed the Act and stated "To improve the economy, policymakers should focus on reforms that remove impediments to work, savings, investment, and production." Numerous other economists support the Act. Regardless of the long-term effects, the Act will create significant new business opportunities for the next 2-3 years. Some of the funds being made available for construction include:
Bid Ocean has a team of Researchers to identify, track and report on all opportunities related to the Act. New opportunities will be published through Bid Ocean's regular daily reports. The official web site for the Recovery Act is at: http://www.recovery.gov
|