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| The US is trying to combat an increasingly devastating economic crisis [GALLO/GETTY] |
What is the package that the US senate is voting on?
The American Recovery and Reinvestment Plan is a huge bill designed to pump money into the US economy, which has been struggling with what many say is the most serious economic crisis since the Great Depression of the 1930s.
The bill, passed by the US House of Representatives last Wednesday, will cost at least $819bn, however the overall cost of the bill currently being debated in the US senate could rise to $887 billion.
The idea underlying the bill is that by creating millions of jobs in infrastructure projects, US citizens will be able to spend and invest their way out of recession and therefore global investors will also regain confidence in the US economy.
Barack Obama, the US president, has said that three million jobs will be created by the package.
What will the money be spent on?
The version of the bill passed by the House of Representatives contained $358 billion in emergency spending on construction projects and other investments aimed at creating jobs.
It also included $275bn in temporary tax cuts for workers, tax incentives to produce renewable energy and tax breaks for firms to be able to write off losses against previous tax years.
The bill includes $48bn to help unemployed people keep their health insurance and to invest in health information technology.
It also contains $46 billion for expanded unemployment benefits and aid to needy families and child support and has about $87 billion to help states pay increasing health insurance costs for the poor.
There is also $100 billion that includes money to improve broadband Internet access, invest more in clean energy and energy efficiency.
The centerpiece tax cut calls for a $500 cut for single workers and $1,000 for couples, including those who don't earn enough to owe federal income taxes.
The senate version of the huge spending bill marks $365.6 billion for construction projects, to improve the health care system and other priorities.
The senate finance committee also approved $522 billion in tax cuts and other provisions that could take the final cost to $887bn.
Where is the money going to come from?
Most of the money needed for the spending will be borrowed on international credit markets, according to reports.
But, some critics say that leaves future generations of US citizens liable to pay back massive debts, with the US already owing more than $1 trillion.
What do the critics say?
Republicans in the House of Representatives voted against the bill and also proposed their own plan, which contained a higher proportion of tax cuts.
Their biggest complaint is that the package is full of items they say seem more likely to promote the Democratic party's agenda than to stimulate the economy in the short run.
These include one billion dollars for the US Census Bureau, money to combat the spread of HIV/Aids and to help people stop smoking.
Others say that infrastructure projects will take too long to implement and create the jobs that the Obama administration hopes will refloat the economy.
For example, just one-third of $30 billion proposed by the House for highway construction would reach the economy in the next year and a half, according to the Congressional Budget Office.
But defenders of the package have argued that once experts determined it would take $800 billion to start to pull the country out of recession and emphasised the urgency, details took on less importance.
How likely is the bill to be passed?
Despite Republican opposition, most US politicians agree urgent action is needed to shore up the struggling US economy.
The Democrats hold a substantial majority in the senate, and this fact, combined with the momentum generated by Obama, means it is almost certain to pass.
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