House Stimulus Plan Actually Costs $1.34 Trillion – Senate Bill Even More
Posted February 6th, 2009 at 10.59am in Ongoing Priorities.
From Heritage Senior Research Fellow Robert Rector’s latest analysis of Obama’s Trillion Dollar Debt Plan:
The recently passed U.S. House of Representatives stimulus bill contains $816 billion in new spending and tax cuts. Of this sum, $264 billion (32 percent) is new means-tested welfare spending. This represents about $6,700 in new welfare spending for every poor person in the U.S.
But this welfare spending is only the tip of the iceberg. The bill sets in motion another $523 billion in new welfare spending that is hidden by budgetary gimmicks. If the bill is enacted, the total 10-year extra welfare cost is likely to be $787 billion.
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The claim that Congress is temporarily increasing welfare spending for Keynesian purposes (to spark the economy by boosting consumer spending) is a red herring. The real goal is a permanent expansion of the welfare system.The notion that Congress intends to temporarily increase Pell grants and EITC benefit levels for just two years and then allow benefits to fall back to their original status is out of touch with Washington reality. Any Congressman who, two years from now, suggests that the new welfare spending be allowed to lapse to pre-stimulus levels would be pilloried for slashing welfare.
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Once the hidden welfare spending in the bill is counted, the total 10-year fiscal burden (added to the national debt) will not be $816 billion, as claimed, but $1.34 trillion.

February 6, 2009 James Holloway writes:
Take the proposed budget and divide by the number of census tax payers (168,000,000) and give the money to the people who have been paying it forward. We the tax payers pay the taxes, duh!!!
My first calculation before additional funds have been added to the kitty show that each tax payer would recieve a stimulus check of not less than $51,000 each. Hmmmmm! What would a person do with an extra 51k? Buy, a car, down on a home, start a business, pay off or down a mortgage, put some savings away, pay off medical bills GEEEEE, stimulating insn’t it. Trickle from the bottom up? Give the people the money they created through their activity in the market place? It would work and we wouldn’t have all these pigs at the trough ready for the slop they feel they so rightly deserve. I say let them fold due to poor management and give the money to the people who really work and know how to manage. Give it to the people then get the Hell OUTA their way!