Every day more and more of Americans are getting laid off and the burden is falling on the Obama Administration to fix the economic problems that was left by the Bush government. The recent stimulus plan that is circulating in the senate and house floors has some good additions. As it stands now, tax cuts account for about $252 billion of its $885 billion total cost, according to an analysis of the Senate bill released by the Congressional Budget Office on Monday.

The plan also comprises of a tax cut for everyone, Of this, $142 billion would go for Obama’s “Making Work Pay” tax credit for individuals. This credit – up to $500 a year for individuals and $1,000 for two-income couples – would fulfill Obama’s campaign pledge of tax relief for low- and middle-income workers. The full amount would be limited to individuals who make $75,000 or less and couples making $150,000 or less. Other individual income-tax provisions contained in the Senate version of the stimulus package include an increase in the earned income-tax credit, estimated to cost $4.7 billion; a $13 billion education tax credit; the first-time home buyer credit, which would cost at least $2.6 billion; and the $70 billion AMT adjustment.

The stimulus package also includes general business tax breaks that would total more than $35 billion.
Small businesses would be able to increase the dollar amount of expenses they could write off from $125,000 to $250,000 for 2009 and 2010, for instance. Businesses would have an increased ability to apply recent losses against past and future tax bills.
All these are good news but on the spending side. There are some provisions of tax cuts that will also cost the government around $70 billion.
The tax cut and spending can and might do good for the economy but the more pressing and long term needs must be accounted for. As an example and for more selling of our goods we should also think about the followings:

1. Open up the Aircraft market specially Boeing for Iran and China to procure. They have recently shown interest to buy American planes.
2. Bring the soldiers from Iraq home as soon as possible. Bring atleast 50% now and rest next year. We are spending around 20/30 billion dollars each month to support our soldiers and this will free up those money for other areas.
3. Stop issuing H1 visas for atleast 2 years so that the companies can hire more American laid off workers. The H1 visa quotas can be given to the family category, so that American Citizens can bring their relatives fast instead of waiting year after year. Average Americans have to wait at least 2-4 years to be united with their family (siblings) which is ridiculous.
4. Give legalization to millions of illegals who will pour in millions of dollars in American economy. Study shows the last legalization by Reagan increased US economic GDP by atleast couple of percent to as high as 10 percent.
5. Stop economic embargo of Cuba. Cuba can be a closer and eager market for our products.
6. Employ Export Import bank of USA to market American products abroad. There are lots of American products that have eager markets and we just need to market those.

I am sure there are others. But if we can at least try to concentrate on there, I am sure the economy of USA will rebound to a great extend.