Senate Republicans' "Stimulus Plan"

Presented as a public service:

(Reuters) - A group of Senate Republicans unveiled a $445 billion alternative economic stimulus plan on Tuesday, about half the cost of the $885 billion Democratic plan the U.S. Senate is considering.

Following are details of the proposal by John McCain of Arizona, John Thune of South Dakota, Richard Burr of North Carolina, Lindsey Graham of South Carolina, and Mel Martinez of Florida.

Tax Provisions:

* For one year, cut in half to 3.1 percent the payroll tax for all U.S. employees. Cost: $165 billion.

* Lower the 10 percent income tax bracket to 5 percent and the 15 percent bracket to 10 percent for one year. Cost: $60 billion.

* Slash the corporate tax rate to 25 percent from 35 percent for a year. For small businesses filing as individuals, their tax bracket would also go down to 25 percent from 35 percent. Cost: $50 billion.

* Offer in 2009 to homebuyers a tax credit of $15,000 or 10 percent of the purchase price, whichever is less. Cost: $20.4 billion.

Spending Provisions:

* Extend unemployment insurance benefits and food stamps through 2009 and eliminate taxes on unemployment benefits for the same time period. Cost: $48.15 billion.

* Use federal money to discourage mortgage servicers and lenders from executing home foreclosures. Cost: $11 billion.

* Grants to states to build and repair roads and bridges. $65 billion.

* Improve, repair and modernize Defense Department facilities. Order and/or repair equipment, vehicles, material and ammunition for combat troops. $17 billion.

* Grants to states to make investments in public transportation systems. $3 billion.

* Grants for airports to build new runways, install runway safety equipment and other infrastructure projects. Cost: $1.1 billion.

Other provisions:

* All spending programs would end three years after the legislation became law.

* To move toward reducing the budget deficit, after two consecutive quarters of more than 2 percent of inflation-adjusted gross domestic product growth, spending provisions from the stimulus package that has not been spent or obligated would be canceled. Additionally, there would be a 2 percent across-the-board spending reduction to help balance the budget by 2015.

* Establish commissions to review Social Security, Medicare and Medicaid.

SOURCE: Republican Senators John McCain, John Thune, Mel Martinez, Lindsey Graham, and Richard Burr.
[(Reporting by Jeremy Pelofsky in Washington, editing by Philip Barbara), FACTBOX: Senate Republican rival stimulus plan, Rueters]>

Now you know.