What Does the Stimulus Package Mean for Nurses?
Where is all the money going? Where will new jobs be created for nurses?
February 04, 2009
Tax Credits for Employed Workers
There will be $142-$145 billion dollars in tax cuts in the “Making Work Pay” program. This is estimated to cater to 95% of workers and their families.
If you are an individual in your household that earns $75,000 or less per year, you’ll get a $500 tax credit. Your employer would reduce the Federal tax withholding automatically taken out of your paycheck.
If you and your partner make a combined total of $150,000 or less per year for your household, together you get a $1000 tax credit for your joint-return. Your employer would reduce the Federal tax withholding automatically taken out of your paycheck.
According to CNN, “Assuming a worker gets a paycheck every two weeks, a $500 tax break amounts to $19.23 extra a paycheck. A $1,000 break for couples is the equivalent of $38.46 per pay period.”
Unemployment Benefits for Job-Seekers
The bill aims to provide $62 -$76 billion to state fiscal relief in order to compensate for decreasing budgets. State governments pay for unemployment benefits, insurance, and healthcare coverage. With the downturn in the economy, state and local governments will need to increase taxes to maintain public services, but the goal is to keep taxes low while allowing state governments to pay for unemployment benefits.
Increasing unemployment benefits by $25 per week: $36 billion would be handed out to States to budget through December 2009. This must include increasing unemployment benefits by $25 per week. Further, the Senate’s proposal includes suspending taxing the first $2,400 of these benefits.
COBRA (Consolidated Omnibus Budget Reconciliation Act), a law that provides continuation of health coverage that otherwise might be terminated due to a job layoff, would be sponsored by an additional $26-$40 billion. This would help nearly 8.5 million Americans. Note: Businesses that employ less than 20 people do not quality for COBRA.
Jobs: The stimulus package is supposed to create or save more than 3 million jobs. There are many areas to focus your job search on in light of the bill.