President Obama and Treasury Secretary Geithner announce new limits on executive compensation. (Source: White House)
The White House released state-specific information of the impact of President Barack Obama’s American Recovery and Reinvestment Plan.
The plan is expected to create and save jobs while addressing needs that are critical for a strong economic future.
Obama sees the creating or saving three-four million jobs over the next two years. Additionally, 95% of American workers will get a tax cut and tens of billions will be invested in roads, bridges, mass transit, flood control, and clean water projects.
Also today, the president and Treasury Secretary Tim Geithner imposed new restrictions on executive compensation at firms taking money from the government under the Wall Street bailout.
Companies receiving “exceptional assistance” from the government will have to impose a $500,000 cap on salaries for senior executives and any compensation beyond that must be in restricted stock. There will be expanded bans on golden parachutes.
“We all need to take responsibility,” Obama said. “And this includes executives at major financial firms who turned to the American people, hat in hand, when they were in trouble, even as they paid themselves customary lavish bonuses….[T]hat’s exactly the kind of disregard of the costs and consequences of their actions that brought about this crisis: a culture of narrow self-interest and short-term gain at the expense of everything else.”
Selections from the state-by-state plan | See the full plan
Alabama
Creating or saving 55,000 jobs over the next two years. Jobs created will be in a range of industries from clean energy to health care, with over 90% in the private sector. [Source: White House Estimate based on Romer and Bernstein, “The Job Impact of the American Recovery and Reinvestment Plan.†January 9, 2009.]
Providing a making work pay tax cut of up to $1,000 for 1,770,000 workers and their families. The plan will make a down payment on the President’s Making Work Pay tax cut for 95% of workers and their families, designed to pay out immediately into workers’ paychecks. [Source: White House Estimate based on IRS Statistics of Income]
Making 70,000 families eligible for a new American Opportunity Tax Credit to make college affordable. By creating a new $2,500 partially refundable tax credit for four years of college, this plan will give 3.8 million families nationwide — and 70,000 families in Alabama — new assistance to put college within their reach. [Source: Center on Budget and Policy Priorities analysis of U.S. Census data]
Georgia
Creating or saving 113,300 jobs over the next two years. Jobs created will be in a range of industries from clean energy to health care, with over 90% in the private sector. [Source: White House Estimate based on Romer and Bernstein, “The Job Impact of the American Recovery and Reinvestment Plan.†January 9, 2009.]
Providing a making work pay tax cut of up to $1,000 for 3,380,000 workers and their families. The plan will make a down payment on the President’s Making Work Pay