Most States are facing budget shortfalls and may be required to cut spending and raise taxes.
While many economist predict a stimulus package exceeding $1 trillion, the Obama camp puts it closer to $750 billion.
The plan will include tax cuts, breaks for small businesses, job creation credits and increased write-offs of expenses.
The tax credit could be a $500 cut for individuals and $1,000 for couples and would become part of the payroll system, meaning the cut would reduce the tax deducted from a workers paycheck so people would get the money right away. If a person doesn't have any tax liability, a refund could be issued to that person.
Currently businesses can carry-back losses for 2 years. Under Obama's plan that would be extended to 5 years, so businesses can carry-back or forward business losses and apply that to past or future tax bills.
Obama would establish a new tax credit for businesses that create jobs or avoid layoffs.
For 2009 and 2010, small businesses would be allowed to write-off expenses up to $250,000, up from $125,000.
Obama's team is looking for a plan that will have the fastest impact on jobs and economic stimulus.
Other parts of the President-Elects proposal will include:
- double renewable energy production and make public buildings more energy efficient;
- rebuild crumbling roads, bridges and schools;
- computerize the health care system;
- and modernize classrooms, labs and libraries.
Everyone agrees that the country needs a plan that will help avoid a steeper economic downturn and creates jobs in the short term and growth and competitiveness in the long term.