Stimulus plan is suppose to make things better?

"COLUMBUS — Ohio and other red ink-bleeding states
had hoped the federal government would rush to their rescue as it did
five years ago, but they found nothing for them in the $150 billion
economic stimulus package proposed by President Bush and House leaders
this week.

In fact, the $50 billion in tax breaks earmarked for
small businesses could drain a total of $4 billion from the coffers of
Ohio, Michigan, and 33 other states that have hitched their tax rates
to those of the federal government, according to the Washington-based,
nonpartisan Center for Budget and Public Priorities.

Ohio stands to lose $113 million in corporate and personal income taxes. Michigan could lose $151 million.

“By
our count, about half the states are now projecting shortfalls going
into the next fiscal year,’’ said Nicholas Johnson, director of the
center’s state fiscal project. “So not only is there no aid for states
as it’s written now, but states that already have shortfalls will lose
money under the bonus depreciation.’’

Designed to jolt a
national economy teetering on recession, the stimulus package as
proposed by the House includes tax rebate checks for individuals, a
federal refinancing option for some homeowners caught up in the
subprime mortgage crisis, and faster and expanded tax write-offs for
small business investments in plants and equipment."

 

http://toledoblade.com/apps/pbcs.dll/article?AID=/20080126/NEWS24/801260...

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