Policy (Economic Stimulus Act) From UiTM KBM Students :D
Case Study Policy Adoption: The Economic Stimulus Acts Presented By:Nur Fatin Fatihah Binti Ahmad Ruzi Zarindatul Arizah Binti Zahari
The Economic Stimulus ActCase Review: The economic condition in 2007 and early 2008 were deteriorating . Risingunemployment, wavering stock market, losses in financial companies and turmoil housing industry in 2007 and early 2008. Later in mid-January President Bush put economic stimulus legislation on national policy agenda, put $145 billion tax relief for individuals and businesses
House speaker Nancy Pelosi, Republican Leader John Boehner and TreasurySecretary Henry Paulson met the president to negotiates and make a dealthat provides:*Tax rebates workers who earned at least $3000 in 2007 will receive $300($600 for married couples)*For those who paid income taxes in 2007 will receive $600 for individual and$1200 for couples*Families in either category would get an additional payment of $300 per child.And this tax cuts were provided for business to encourage investment andlimits on home mortgages were INCREASEDESTIMATED COST : $150 billion The package was sent to House Floor and passed but Bipartisan don’t agree with it
Because bipartisan don’t agree with it then The SenateFinance Committee add a number of provisions to the housebill• Rebates for social security recipients and disable veterans,• home energy subsidies for low income families,• tax credit for alternative energy development• and extension of unemployment benefits.- But al of this increase the cost of senate bill But the Republican objected it and this provision failed because of one shot vote was required in the House Bill. But tax rebates to social security recipients and disable veterans group were added
The amended bill then cleared and was signed into law by President George W. BushIn the end The Economic Stimulus Act cost $152 Billon in 2008 andanother $16 Billion in 2009. The Americans get :-Tax rebates workers who earned at least $3000 in 2007 will receive$300 ($600 for married couples)-For those who paid income taxes in 2007 will receive $600 forindividual and $1200 for couples-tax rebates to social security recipients and disable veterans group.-Tax breaks for business-Temporary increase in mortgage limits for the Federal HousingAdministration-Ban on benefit to illegal immigrants.And this tax cuts were provided the individual business toencourage investment
AVAILABLE RESOURCES• The president does not have the resources to do everything he want to do, whether by money, personnel, patronage, time or credibility.• In The Economic Stimulus Act President Bush put economic stimulus legislation on the policy agenda, calling for $145 billion tax relief for individual and business.• In the end The Economic Stimulus Act cost $152 Billon in 2008 and another $16 Billion in 2009. And because of this tax cuts were provided by the government the individual and business can invest more
TIME• Timing and the need to act is very crucial.• The Economic Stimulus Act is in 2008 it is to recover the rising unemployment, wavering stock market, losses financial companies and turmoil housing industry in 2007 and early 2008.• As a result the Economic Stimulus Act in 2008 is ‘timely, targeted and temporary.
PERMISSIBILITY The actions of the government to achieve economic goals are enacted through legislation. Eg.: Expected to act in Country faced conformity with the recession, the Constitution, Statues, government can take and Court Decisions. action by introducing economic stimulus bills. LEGALITY
PERMISSIBILITY Acceptance by the congress, officials, and the publics. Economic stimulus The economic ACCEPTABILITY packages can also stimulus legislation benefit elected officials used to assist the since they can be seen poor, small as working for the businesses, and benefit of citizens by those affected by infusing cash into the disaster. economy.
PREVIOUS COMMITMENTS The burden faced by the public to pay taxes and alsoThis factor can shape the debt lead to president takedecision of the president. the action to impose the Economic Stimulus Act.
AVAILABLE INFORMATIONNational Bureau of Economic Research(NBER) determined that recession hadbegun in December 2007. Recession is an emergency situation that influence the decision made by the president. That’s why economic stimulus was put on the national policy agenda.
CONCLUSION Available Time Permissibility Resources Previous AvailableCommitment Information
REFERENCES1. Public Policy Making 7th Edition by James E.Anderson.2. Mortgage Crisis: How has the federal government responded? retrieved from http://www.taxpolicycenter.org/briefing-book/state- local/mortgage-crisis/federal.cfm3. Overview of Economic Stimulus Programs retrieved from http://connection.ebscohost.com/businessfinances/economic- stimulus-package/overview-economic-stimulus-programs4. Interpreting the Economic Stimulus Act: How To Be Sure You Receive ALL of Your Refund retrieved from http://www.foxrothschild.com/newspubs/newspubsArticle.aspx?id =117005. Did the 2008 Tax Rebates Stimulate Spending? retrieved from http://www.nber.org/digest/mar09/w14753.html