The types of economic stimulus package Obama has put forth are pretty much the types that have been used in previous recessions. The stimulus package, also known as the American Recovery and Reinvestment Act, was primarily focused on helping consumers and the economy. Many companies were able to survive the initial onslaught of the economic crisis and even thrive during the recession by cutting costs and implementing efficiency programs. But, they were not able to get back to profitability until after the economic stimulus package had finished.
There are two main types of this fiscal policy. The first is the federal stimulus package that was funded by the government and implemented via the Federal Reserve. The other is a set of tax cuts, or a package of lower tax rates for most Americans. Both are extremely effective when it comes to helping the economy recover from its initial setback. In many ways, both measures are similar.
The main thrust of the package is to help businesses begin to heal themselves from the past recession and get their financial situation in order. Tax cuts are designed to either decrease the amount of taxes a business pays or change the rate at which it pays its taxes. Smaller businesses are some of the first to take advantage of these incentives, but, larger corporations often use these breaks to lower their own tax burden. When these businesses are able to operate at a higher level, more jobs are created, which helps drive up the economy further. This is the general idea behind the stimulus package, really.
When it comes to the types of economic stimulus packages that can be used on a state level, things get a little more complicated. In many cases, these packages involve a combination of federal and state financing in an effort to keep down the overall cost of providing public services. For example, many states have passed resolutions declaring that they will not raise their personal income tax unless certain reductions are made in order for them to receive those funds. The state then turns around and offers to provide those reductions to local governments and other organizations in exchange for their local share of the revenue raised by the state.
The type of stimulus package being discussed at this moment is probably a type called SMART. This stands for “social, economic, and research and development investments.” In short, this particular type of investment encourages community development, research and development, and increases in the supply of certain types of goods within a market. While some state governments are trying to pass this type of stimulus package right now, others have put the kibosh on the idea due to the growing opposition that such a proposal represents.
So, while there may be additional debate as to which types of economic stimulus packages are best suited for each specific situation, the above two . . . . . . are certainly some of the more common types that have been pushed the states and the federal government. If you would like to learn more about the types of economic stimulus package that your particular state may be offering, it would certainly be beneficial to research further. There is no doubt that a lot of our country's future success will rest upon the types of stimulus packages that we choose to fund and participate in. For more information regarding what types of economic stimulus packages are currently available, you may wish to visit the website cited below.