76-673: The American Recovery and Reinvestment Act of 2009 ( ARRA ) ( Pub. L. 111–5 (text) (PDF) ), nicknamed the Recovery Act , was a stimulus package enacted by the 111th U.S. Congress and signed into law by President Barack Obama in February 2009. Developed in response to the Great Recession , the primary objective of this federal statute was to save existing jobs and create new ones as soon as possible. Other objectives were to provide temporary relief programs for those most affected by
152-426: A U.S. trade or business. The rate of AMT varies by type of taxpayer. Through 2018, individuals, estates, and trusts are subject to the same rate of tax on long-term capital gains for regular tax and AMT. The deduction for personal exemptions is not allowed. Instead, all taxpayers are granted an exemption that is phased out at higher income levels. See above for amounts of this exemption and phase-out points. Due to
228-456: A corporation. Affiliated corporations were treated as if they were a single corporation for all three exemptions ($ 40,000, $ 7.5 million, and first year). Previously, corporations filed Form 4626 Archived July 28, 2018, at the Wayback Machine for AMT. Corporations were also subject to an adjustment (up or down) for adjusted current earnings. The American Taxpayer Relief Act of 2012 set
304-407: A dime of federal income taxes. The households had taken advantage of so many tax benefits and deductions that they had reduced their tax liabilities to zero. Congress responded by creating an add-on tax on high-income households, equal to 10% of the sum of tax preferences in excess of $ 30,000 plus the taxpayer's regular tax liability. The explanation of the 1969 Act prepared by Congress's Staff of
380-476: A future year, if AMT is caused by timing adjustment items such as the exercise of ISOs. However, this credit is limited: see further details in the "AMT credit against regular tax" section. Regular tax used as a basis for computing AMT is found on the following lines of tax return forms: individual Form 1040 Line 44, less foreign tax credit. Certain other adjustments apply. In addition, a partner or shareholder's share of AMT income and adjustments flow through to
456-416: A larger economic stimulus to counter the economic downturn. While in favor of a stimulus package, Feldstein expressed concern over the act as written, saying it needed revision to address consumer spending and unemployment more directly. Just after the bill was enacted, Krugman wrote that the stimulus was too small to deal with the problem, adding, "And it's widely believed that political considerations led to
532-566: A larger number of taxpayers began to pay the AMT. The number of households owing AMT rose from 200,000 in 1982 to 5.2 million in 2017, but was reduced back to 200,000 in 2018 by the TCJA. After the expiry of the TCJA in 2025, the number of AMT taxpayers is expected to rise to 7 million in 2026. Each year, high-income taxpayers must calculate and then pay the greater of an alternative minimum tax (AMT) or regular tax. The alternative minimum taxable income (AMTI)
608-541: A married couple with dissimilar incomes from benefiting by filing separate returns so that the lower earner gets the benefit of some exemption amount that would be phased out if they filed jointly. When filing separately, each spouse in effect not only has their own exemption phased out, but is also taxed on a second exemption too, on the presumption that the other spouse could be claiming that on their own separate MFS return. All taxpayers claiming deductions for depreciation must adjust those deductions in computing AMT income to
684-709: A plan that was weaker and contains more tax cuts than it should have – that Mr. Obama compromised in advance in the hope of gaining broad bipartisan support." Conservative economist John Lott was more critical of the government spending. On January 28, 2009, a full-page advertisement with the names of approximately 200 economists who were against Obama's plan appeared in The New York Times and The Wall Street Journal . This included Nobel Memorial Prize in Economic Sciences laureates Edward C. Prescott , Vernon L. Smith , and James M. Buchanan . The economists denied
760-524: A report that provided a preliminary analysis of the impact to jobs of some of the prototypical recovery packages that were being considered. The House version of the bill, H.R. 1 , was introduced on January 26, 2009 by Dave Obey , the chairman of the House Committee on Appropriations , and was co-sponsored by nine other Democrats. On January 23, Speaker of the House Nancy Pelosi said that
836-471: Is promulgated , or given the force of law, in one of the following ways: The president promulgates acts of Congress made by the first two methods. If an act is made by the third method, the presiding officer of the house that last reconsidered the act promulgates it. Under the United States Constitution , if the president does not return a bill or resolution to Congress with objections before
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#1732844016790912-591: Is a tax imposed by the United States federal government in addition to the regular income tax for certain individuals, estates , and trusts . As of tax year 2018, the AMT raises about $ 5.2 billion, or 0.4% of all federal income tax revenue, affecting 0.1% of taxpayers, mostly in the upper income ranges. An alternative minimum taxable income ( AMTI ) is calculated by taking the ordinary income and adding disallowed items and credits such as state and local tax deductions, interest on private-activity municipal bonds,
988-411: Is added to AMT income. She has no itemized deductions. Alice thus must calculate income taxes twice: Ordinary taxation Alice calculates $ 15,246 in ordinary federal income taxes on $ 100,000: $ 100,000 - $ 12,200 standard deduction = $ 79,800 taxable income, at ordinary rates of 10%, 12%, 22%, 24%, would pay $ 15,246.50 in taxes. Alternative minimum taxation Because Alice's AMT tax burden of $ 28,158
1064-427: Is allocated to federal spending programs such as transportation, communication, wastewater, and sewer infrastructure improvements; energy efficiency upgrades in private and federal buildings; extension of federal unemployment benefits; and scientific research programs. The following are details to the different parts of the final bill and the selected citizen to receive this Government Grants have to come up with $ 350 for
1140-421: Is allowed for personal exemptions or for the standard deduction. The phase-out of itemized deductions does not apply. No deduction is allowed for state, local, or foreign income or property taxes. A recovery of such taxes is excluded from AMTI. No deduction is allowed for most miscellaneous itemized deductions. Medical expenses are deductible for AMT only to the extent they exceed 10% of adjusted gross income (this
1216-430: Is also filed to claim the credit for prior year AMT. Other adjustments in computing AMT include: Many AMT adjustments apply to businesses. The adjustments tend to have the effect of deferring certain deductions or recognizing income sooner. These adjustments include: To the extent AMT exceeds regular Federal income, a future credit may be provided which can offset future regular tax to the extent AMT does not apply in
1292-475: Is calculated by taking the taxpayer's regular income and adding on disallowed credits and deductions such as the bargain element from incentive stock options, state and local tax deduction, foreign tax credits, and passive activity losses. The amount of the AMTI then determines how much of the exemption can be taken, which is subtracted from the AMTI. Finally, the AMTI minus the exemption is taxed at 26% or 28% depending on
1368-542: Is deprecated by some dictionaries and usage authorities. However, the Bluebook requires "Act" to be capitalized when referring to a specific legislative act. The United States Code capitalizes "act". The term "act of Congress" is sometimes used in informal speech to indicate something for which getting permission is burdensome. For example, "It takes an act of Congress to get a building permit in this town." An act adopted by simple majorities in both houses of Congress
1444-610: Is greater than her ordinary tax burden of $ 15,246, she pays a total of $ 28,158 in federal taxes (i.e., $ 15,246 in ordinary tax and $ 12,912 in AMT). Because ISO bargain element is a timing adjustment in AMT parlance, she is able to carry forward her $ 12,912 in AMT paid to tax year 2020 as a minimum tax credit, where she may receive a credit for the tax paid. Due to the effect of the exemption phaseout, there are effective marginal tax rates of 32.5% and 35%. A lower tax rate continues to apply to long-term capital gains (and qualifying dividends). While
1520-430: The 111th United States Congress . Public laws are also often abbreviated as Pub. L. No. X–Y. When the legislation of those two kinds are proposed, it is called public bill and private bill respectively. The word "act", as used in the term "act of Congress", is a common, not a proper noun . The capitalization of the word "act" (especially when used standing alone to refer to an act mentioned earlier by its full name)
1596-841: The Cato Institute . On February 8, 2009, a letter to Congress signed by about 200 economists in favor of the stimulus, written by the Center for American Progress Action Fund , said that Obama's plan "proposes important investments that can start to overcome the nation's damaging loss of jobs", and would "put the United States back onto a sustainable long-term-growth path". This letter was signed by Nobel Memorial laureates Kenneth Arrow , Lawrence R. Klein , Eric Maskin , Daniel McFadden , Paul Samuelson and Robert Solow . The New York Times published projections from IHS Global Insight, Moodys.com, Economy.com and Macroeconomic Advisers that indicated that
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#17328440167901672-635: The Congressional Budget Office (CBO) said that while the stimulus would increase economic output and employment in the short run, the GDP would, by 2019, have an estimated net decrease between 0.1% and 0.3% (as compared to the CBO estimated baseline). The CBO estimated that enacting the bill would increase federal budget deficits by $ 185 billion over the remaining months of fiscal year 2009, by $ 399 billion in 2010, and by $ 134 billion in 2011, or $ 787 billion over
1748-545: The Drudge Report published links to pages on Recovery.gov that Drudge alleged were detailing expensive contracts awarded by the U.S. Department of Agriculture for items such as individual portions of mozzarella cheese, frozen ham and canned pork, costing hundreds of thousands to over a million dollars. A statement released by the USDA the same day corrected the allegation, stating that "references to '2 pound frozen ham sliced' are to
1824-508: The Federation of Canadian Municipalities conference passed a resolution that would potentially shut out U.S. bidders from Canadian city contracts, in order to help show support for Prime Minister Stephen Harper 's opposition to the "Buy American" provision. Sherbrooke Mayor Jean Perrault , president of the federation, stated, "This U.S. protectionist policy is hurting Canadian firms, costing Canadian jobs and damaging Canadian efforts to grow in
1900-473: The 2007 tax year, the patch was passed on December 20, 2007, but only after the IRS had already designed its forms for 2007. The IRS had to reprogram its forms to accommodate the law change. The tax rate and exemption increases are reflected in the following table: married filing jointly begins single or head of household phaseout begins married filing jointly single or head of household From 1986 to 2017,
1976-429: The 2009–2019 period. In a February 11 letter, CBO Director Douglas Elmendorf noted that there was disagreement among economists about the effectiveness of the stimulus, with some skeptical of any significant effects while others expecting very large effects. Elmendorf said the CBO expected short term increases in GDP and employment. In the long term, the CBO expects the legislation to reduce output slightly by increasing
2052-415: The 2012 exemption amounts to $ 78,750 for Married Filing Jointly and $ 50,600 for Single, and made future exemption amounts indexed for inflation. Alternative minimum tax (AMT) is imposed on an alternative, more comprehensive measure of income than regular federal income tax. Conceptually, it is imposed instead of, rather than in addition to, regular tax. AMT is imposed if the tentative minimum tax exceeds
2128-422: The AMT. For years since then, Congress had passed one-year "patches" aimed at minimizing the impact of the tax. While not automatically indexed for inflation until a change in the law in early 2013, the exemption had been increased by Congress many times. In addition, the tax rate was increased for individuals effective 1991 and 1993, and the tax was limited for capital gains and qualifying dividends in 2003. For
2204-537: The AMT. The AMT previously applied in 2017 and earlier to many taxpayers earning from $ 200,000 to $ 500,000 because state and local taxes were fully deductible under the regular tax code but not at all under AMT. Despite the cap of the SALT deduction, the vast majority of AMT taxpayers paid less under the 2018 rules. The AMT was originally designed to tax high-income taxpayers who used the regular tax system to pay little or no tax. Due to inflation and cuts in ordinary tax rates,
2280-637: The Constitution may be declared unconstitutional by the courts. A judicial declaration that an act of Congress is unconstitutional does not remove the act from the Statutes at Large or the United States Code; rather, it prevents the act from being enforced. However, the act as published in annotated codes and legal databases is marked with annotations indicating that it is no longer good law. Alternative minimum tax The alternative minimum tax ( AMT )
2356-596: The House version and the Senate version was the inclusion of a one-year extension of revisions to the alternative minimum tax , which added $ 70 billion to the bill's total. Republicans proposed several amendments to the bill directed at increasing the share of tax cuts and downsizing spending as well as decreasing the overall price. President Obama and Senate Democrats hinted that they would be willing to compromise on Republican suggestions to increase infrastructure spending and to double
American Recovery and Reinvestment Act of 2009 - Misplaced Pages Continue
2432-458: The Joint Committee on Internal Revenue Taxation described the reason for the AMT as follows: The prior treatment imposed no limit on the amount of income which an individual or corporation could exclude from tax as the result of various tax preferences. As a result, there were large variations in the tax burdens placed on individuals or corporations with similar economic incomes, depending upon
2508-492: The Joint Committee on Taxation, occurred under the Reagan era Tax Equity and Fiscal Responsibility Act of 1982 . The law changed the AMT from an add-on tax to its current form: a parallel tax system. The current structure of the AMT reflects changes that were made by the 1982 law. However, participation and revenues from the AMT temporarily plummeted after the 1986 changes. Congress made other notable, but less significant, changes to
2584-485: The Recovery Act into law. Section 3 of ARRA listed the basic intent behind crafting the law. This Statement of Purpose included the following: The Act specifies that 37% of the package is to be devoted to tax incentives equaling $ 288 billion and $ 144 billion, or 18%, is allocated to state and local fiscal relief (more than 90% of the state aid is going to Medicaid and education). The remaining 45%, or $ 357 billion,
2660-434: The Senate bill and the House bill were: More funds for health care in the Senate ($ 153.3 vs $ 140 billion), renewable energy programs ($ 74 vs. $ 39.4 billion), for home buyers tax credit ($ 35.5 vs. $ 2.6 billion), new payments to the elderly and a one-year increase in AMT limits. The House had more funds appropriated for education ($ 143 vs. $ 119.1 billion), infrastructure ($ 90.4 vs. $ 62 billion) and for aid to low income workers and
2736-450: The TCJA amended exemptions and phaseouts for single and married filers, it did not change it for trusts. Under the AMT the standard deduction does not apply, but the AMT exemption does. State, local, and foreign taxes are not deductible. However, most other itemized deductions apply at least in part. Significant other adjustments to income and deductions apply. Individuals must file IRS Form 6251 if they have any net AMT due. The form
2812-633: The activation and they must clear the state tax according to the state percentage that will be refund it back along with the Grants.: Total: $ 237 billion Total: $ 51 billion ARRA included the enactment of the Health Information Technology for Economic and Clinical Health Act , also known as the HITECH Act. Total health care spending: $ 155.1 billion Total: $ 100 billion Total: $ 82.2 billion Total: $ 105.3 billion Total: $ 48.1 billion, some in
2888-466: The amount of deduction allowed for AMT. For AMT purposes, depreciation is computed on most assets under the straight line method using the class life of the asset. When a taxpayer is required to recognize gain or loss on disposal of a depreciable asset (or pollution control facility), the gain or loss must be adjusted to reflect the AMT depreciation amount rather than regular depreciation amounts. This adjustment also applies to additional amounts deducted in
2964-435: The bargain element of incentive stock options , foreign tax credits, and home equity loan interest deductions. This broadens the base of taxable items. Many deductions, such as mortgage home loan interest and charitable deductions, are still allowed under AMT. The AMT is then imposed on this AMTI at a rate of 26% or 28%, with a much higher exemption than the regular income tax. The Tax Cuts and Jobs Act of 2017 (TCJA) reduced
3040-487: The bill was on track to be presented to President Obama for him to sign into law before February 16, 2009. Although 206 amendments were scheduled for floor votes, they were combined into only 11, which enabled quicker passage of the bill. On January 28, 2009, the House passed the bill by a 244–188 vote. All but 11 Democrats voted for the bill, but not a single Republican voted in favor: 177 Republicans voted against it, while one Republican did not vote. The Senate version of
3116-570: The bill, S. 1 , was introduced on January 6, 2009, and later substituted as an amendment to the House bill, S.Amdt. 570 . It was sponsored by Harry Reid , the Majority Leader , co-sponsored by 16 other Democrats and Joe Lieberman , an independent who caucused with the Democrats . The Senate then began consideration of the bill starting with the $ 275 billion tax provisions in the week of February 2, 2009. A significant difference between
American Recovery and Reinvestment Act of 2009 - Misplaced Pages Continue
3192-576: The economy may have been worse without the ARRA. A 2019 study in the American Economic Journal found that the stimulus had a positive impact on the US economy, but that the positive impact would have been greater if the stimulus had been more frontloaded. The CBO estimated ARRA would positively impact GDP and employment. It projected an increase in the GDP of between 1.4 percent and 3.8 percent by
3268-446: The end of 2009, between 1.1 percent and 3.3 percent by the end of 2010, between 0.4 percent and 1.3 percent by the end of 2011, and a decrease of between zero and 0.2 percent beyond 2014. The impact to employment would be an increase of 0.8 million to 2.3 million by the end of 2009, an increase of 1.2 million to 3.6 million by the end of 2010, an increase of 0.6 million to 1.9 million by
3344-451: The end of 2011, and declining increases in subsequent years as the U.S. labor market reaches nearly full employment, but never negative. Decreases in GDP in 2014 and beyond are accounted for by crowding out , where government debt absorbs finances that would otherwise go toward investment. A 2013 study by economists Stephen Marglin and Peter Spiegler found the stimulus had boosted GDP in line with CBO estimates. A February 4, 2009, report by
3420-423: The exemption amount, resulting in a 'negative exemption'. For example, using 2009 figures, a filer with $ 358,800 of income not only gets zero exemption, but is also taxed on an additional $ 35,475 that was never actually earned (see "Line 29 — Alternative Minimum Taxable Income" in 2009 Instructions for Form 6251 or "Line 28 — Alternative Minimum Taxable Income" in 2010 Instructions for Form 6251 ). This prevents
3496-418: The form of Transportation Investment Generating Economic Recovery (TIGER) Grants Total: $ 18 billion Total: $ 7.2 billion Total: $ 10.5 billion Total: $ 21.5 billion Total: $ 27.2 billion Total: $ 14.7 billion Total: $ 7.6 billion Total: $ 10.6 billion ARRA included a protectionist 'Buy American' provision, which imposed a general requirement that any public building or public works project funded by
3572-520: The fraction of taxpayers who owed the AMT from 3% in 2017 to 0.1% in 2018, including from 27% to 0.4% of those earning $ 200,000 to $ 500,000 and from 61.9% to 2% of those earning $ 500,000 to $ 1,000,000. The major reasons for the reduction of AMT taxpayers after TCJA include the capping of the state and local tax deduction (SALT) by the TCJA at $ 10,000, and a large increase in the exemption amount and phaseout threshold. A married couple earning $ 200,000 now requires over $ 50,000 of AMT adjustments to begin paying
3648-474: The general public ( public laws ). For a bill to become an act, the text must pass through both houses with a majority, then be either signed into law by the president of the United States , be left unsigned for ten days (excluding Sundays) while Congress remains in session, or, if vetoed by the president, receive a congressional override from 2 ⁄ 3 of both houses. In the United States, acts of Congress are designated as either public laws , relating to
3724-458: The general public, or private laws , relating to specific institutions or individuals. Since 1957, all Acts of Congress have been designated as "Public Law X–Y" or "Private Law X–Y", where X is the number of the Congress and Y refers to the sequential order of the bill (when it was enacted). For example, P. L. 111–5 ( American Recovery and Reinvestment Act of 2009 ) was the fifth enacted public law of
3800-549: The government site, the privately run Recovery.org is actually providing detailed information about how the $ 787 billion in stimulus money is being spent." Reports regarding errors in reporting on the Web site made national news. News stories circulated about Recovery.gov reporting fund distribution to congressional districts that did not exist. A new Recovery.gov website was redesigned at a cost estimated to be $ 9.5 million (~$ 13 million in 2023) through January 2010. On July 20, 2009,
3876-528: The housing tax credit proposed from $ 7,500 to $ 15,000 and expand its application to all home buyers, not just first-time buyers. Other considered amendments included the Freedom Act of 2009 , an amendment proposed by Senate Finance Committee members Maria Cantwell (D) and Orrin Hatch (R) to include tax incentives for plug-in electric vehicles . The Senate called a special Saturday debate session for February 7 at
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#17328440167903952-495: The law in 1978, 1982, and 1986. Further significant changes occurred as a result of the Omnibus Budget Reconciliation Acts of 1990 and 1993, which raised the AMT rate to 24% from the prior level of 21% and then to 26% and 28% for individual filers with incomes that exceeded $ 175,000. Now, some taxpayers who do not have very high incomes or participate in numerous special tax benefits and/or activities will pay
4028-570: The law is accomplished by the president, or the relevant presiding officer in the case of an overridden veto, delivering the act to the archivist of the United States . The archivist provides for its publication as a slip law and in the United States Statutes at Large after receiving the act. Thereafter, the changes are published in the United States Code . Through the process of judicial review , an act of Congress that violates
4104-437: The level of income. Table of 2019 AMT tax rates and exemptions for AMT income: Alice is a single taxpayer who earns $ 100,000 of W-2 wage income in 2019. She also exercised and held (did not sell) 800 incentive stock options (ISOs) each for her employer, with a strike price of $ 100 and a current fair market value of $ 200. She thus incurs an additional $ 80,000 of bargain element that is not taxed under ordinary income, but
4180-418: The nation's debt and crowding out private investment, but noted that other factors, such as improvements to roads and highways and increased spending for basic research and education may offset the decrease in output and that crowding out was not an issue in the short term because private investment was already decreasing in response to decreased demand. In February 2015, the CBO released its final analysis of
4256-506: The new stimulus package must use only iron, steel and other manufactured goods produced in the United States. A May 15, 2009, Washington Post article reported that the 'Buy American' provision of the stimulus package caused outrage in the Canadian business community, and that the government in Canada "retaliated" by enacting its own restrictions on trade with the U.S. On June 6, 2009, delegates at
4332-525: The partner or shareholder from the partnership or S corporation . AMT is reduced by a foreign tax credit , limited based on AMT income rather than regular taxable income. Certain specified business tax credits are allowed. A predecessor "minimum tax" was enacted by the Tax Reform Act of 1969 and went into effect in 1970. Treasury Secretary Joseph Barr prompted the enactment action with an announcement that 155 high-income households had not paid
4408-454: The phase-out of exemptions, the actual marginal tax rate (1.25*26% = 32.5%) is higher for the income above the phase-out point. The married-filing-separately (MFS) phase-out does not stop when the exemption reaches zero, either in 2009 or 2010. This is because the MFS exemption is half of the joint exemption, but the phase-out is the full amount, so for MFS filers the phase-out amount can be up to twice
4484-497: The quoted statement by President Obama that there was "no disagreement that we need action by our government, a recovery plan that will help to jumpstart the economy". Instead, the signers believed that "to improve the economy, policymakers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth." The funding for this advertisement came from
4560-577: The recession and invest in infrastructure, education, health, and renewable energy. The approximate cost of the economic stimulus package was estimated to be $ 787 billion at the time of passage, later revised to $ 831 billion between 2009 and 2019. The ARRA's rationale was based on the Keynesian economic theory that, during recessions, the government should offset the decrease in private spending with an increase in public spending in order to save jobs and stop further economic deterioration. The politics around
4636-460: The regular tax. Tentative minimum tax is the AMT rate of tax times alternative minimum taxable income (AMTI) less the AMT foreign tax credit. Regular tax is the regular income tax reduced only by the foreign and possessions tax credits. In any year in which regular tax exceeds tentative minimum tax, a credit (AMT Credit) is allowed against regular tax to the extent the taxpayer has paid AMT in any prior year. This credit may not reduce regular tax below
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#17328440167904712-596: The results of the law, which found that during six years: A May 21, 2009, article in The Washington Post stated, "To build support for the stimulus package, President Obama vowed unprecedented transparency, a big part of which, he said, would be allowing taxpayers to track money to the street level on Recovery.gov..." But three months after the bill was signed, Recovery.gov offers little beyond news releases, general breakdowns of spending, and acronym-laden spreadsheets and timelines." The same article also stated, "Unlike
4788-818: The size of their preference income. In general, those individual or corporate taxpayers who received the bulk of their income from personal services or manufacturing were taxed at relatively higher tax rates than others. On the other hand, individuals or corporations which received the bulk of their income from such sources as capital gains or were in a position to benefit from net lease arrangements, from accelerated depreciation on real estate, from percentage depletion, or from other tax-preferred activities tended to pay relatively low rates of tax. In fact, many individuals with high incomes who could benefit from these provisions paid lower effective rates of tax than many individuals with modest incomes. In extreme cases, individuals enjoyed large economic incomes without paying any tax at all. This
4864-542: The sizes of the packaging. Press reports suggesting that the Recovery Act spent $ 1.191 million to buy "2 pounds of ham" are wrong. In fact, the contract in question purchased 760,000 pounds of ham for $ 1.191 million, at a cost of approximately $ 1.50 per pound." Act of Congress#Public law, private law, designation An act of Congress is a statute enacted by the United States Congress . Acts may apply only to individual entities (called private laws ), or to
4940-608: The stimulus reduced unemployment, and that the benefits of the stimulus outweigh the cost. According to the CBO's final report in February 2015, the ARRA spent $ 121,313 to create or save each job. Both the House and the Senate versions of the bills were primarily written by Democratic congressional committee leaders and their staffs. Because work on the bills started before President Obama officially took office on January 20, 2009, top aides to President-Elect Obama held multiple meetings with committee leaders and staffers. On January 10, 2009, President-Elect Obama's administration released
5016-576: The stimulus were very contentious, with Republicans criticizing the size of the stimulus. On the right, it spurred the Tea Party movement and may have contributed to Republicans winning the House in the 2010 midterm elections . Not a single Republican member of the House voted for the stimulus, and only three Republican senators voted for it. Most economists have argued that the stimulus was smaller than needed. Surveys of economists show overwhelming agreement that
5092-412: The tax rate for corporations remained at 20%, and the exemption amount has remained at $ 40,000. In 2018, the corporate AMT was permanently repealed. Before tax year 2018, corporations with average annual gross receipts of $ 7,500,000 or less for the prior three years are exempt from AMT, but only so long as they continue to meet this test. Further, a corporations were exempt from AMT during its first year as
5168-529: The tentative minimum tax. Alternative minimum taxable income is regular taxable income, plus or minus certain adjustments, plus tax preference items, less the allowable exemption (as phased out). Individuals, estates, and trusts are subject to AMT. Partnerships and S corporations are generally not subject to income or AMT taxes, but, instead, pass-through the income and items related to computing AMT to their partners and shareholders. Foreign persons are subject to AMT only on their income effectively connected with
5244-430: The time limit expires, then the bill automatically becomes an act; however, if the Congress is adjourned at the end of this period, then the bill dies and cannot be reconsidered (see pocket veto ). If the president rejects a bill or resolution while the Congress is in session, a two-thirds vote of both houses of Congress is needed for reconsideration to be successful. Promulgation in the sense of publishing and proclaiming
5320-510: The unemployed ($ 71.5 vs. $ 66.5 billion). Congressional negotiators said that they had completed the Conference Report on February 11. On February 12, House Majority Leader Steny Hoyer scheduled the vote on the bill for the next day, before wording on the bill's content had been completed and despite House Democrats having previously promised to allow a 48-hour public review period before any vote. The Report with final handwritten provisions
5396-482: The urging of President Obama. The Senate voted, 61–36 (with 2 not voting) on February 9 to end debate on the bill and advance it to the Senate floor to vote on the bill itself. On February 10, the Senate voted 61–37 (with one not voting) All the Democrats voted in favor, but only three Republicans voted in favor ( Susan Collins , Olympia Snowe , and Arlen Specter ). Specter switched to the Democratic Party later in
5472-506: The world-wide recession." On February 16, 2010, the United States and Canada agreed on exempting Canadian companies from Buy American provisions, which would have hurt the Canadian economy . Economists such as Martin Feldstein , Daron Acemoğlu , National Economic Council director Larry Summers , and Nobel Memorial Prize in Economic Sciences winners Joseph Stiglitz and Paul Krugman favored
5548-488: The year of acquisition of the assets. For more details on these calculations, see MACRS . In addition, before 2018 corporate taxpayers may be required to make adjustments to depreciation deductions in computing the adjusted current earnings (ACE) adjustment. Such adjustments only apply to assets acquired before 1989. Adjustments are also required for the following: Individuals are not allowed certain deductions in computing AMT that are allowed for regular tax. No deduction
5624-651: The year. At one point, the Senate bill stood at $ 838 billion. Senate Republicans forced a near unprecedented level of changes (near $ 150 billion) in the House bill, which had more closely followed the Obama plan. A comparison of the $ 827 billion economic recovery plan drafted by Senate Democrats with an $ 820 billion version passed by the House and the final $ 787 billion conference version shows huge shifts within these similar totals. Additional debt costs would add about $ 350 billion or more over 10 years. Many provisions were set to expire in two years. The main funding differences between
5700-499: Was posted on a House website that evening. On February 13, the Report passed the House, 246–183, largely along party lines with all 246 Yes votes given by Democrats and the Nay vote split between 176 Republicans and 7 Democrats. The Senate passed the bill, 60–38, with all Democrats and Independents voting for the bill along with three Republicans. On February 17, 2009, President Barack Obama signed
5776-401: Was true for example in the case of 154 returns in 1966 with adjusted gross incomes of $ 200,000 a year (apart from those with income exclusions which do not show on the returns filed). Similarly, a number of large corporations paid either no tax at all or taxes which represented very low effective rates. The AMT has undergone several changes since 1969. The most significant of those, according to
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