More than 20 years ago, the United States became a party to a $1 trillion bailout of the financial industry.
That bailout, which was later extended through to the financial crisis, saved the nation from a financial meltdown.
But the financial rescue was not without its critics, including Democrats.
The Senate Democrats’ plan for a $2 trillion stimulus package for Christmas includes a provision that would make it easier for companies to raise capital if the economy is going downhill.
The package would also include a $10,000 bonus for businesses that hire at least 100 workers a month, and a $20,000 tax credit for companies that invest at least $1 billion a year.
“It is not a giveaway to big banks,” Sen. Ron Wyden (D-Ore.), the ranking member of the Senate Finance Committee, said in a statement Thursday.
“It is a giveaway that helps small businesses.”
Wyden and Sen. Elizabeth Warren (D) of Massachusetts have called for the package to include a corporate tax cut and a boost to public-sector jobs.
Wyden also criticized the package for offering incentives to companies that do not invest and a provision allowing for an extension of the public-employee retirement program, known as PERS, without a specific commitment to raise revenue.
“The bill doesn’t provide any money for PERS and it does not provide any jobs,” he said.
The package also includes a tax break for companies who hire 10,000 or more workers and pay a 25 percent tax on the money they make from the hiring of 10,001 to 20,000 workers, as well as an additional $2 billion to help companies that sell stock and other investments to the public.
The proposal would not extend the tax break, which would expire after 2025.
Republicans have criticized the plan for offering a $5,000 credit to companies to hire 10 employees a month.
The GOP plan would increase the credit by $1,000 to $5 in 2020.
The $2.5 trillion stimulus bill is one of the most ambitious in modern history, and it will provide tens of billions of dollars in relief for workers, small businesses, and the middle class.
The bipartisan deal, known in Washington as the Economic Recovery and Jobs Act, is a massive boost for the economy.
It includes $1.2 trillion in emergency stimulus funds, $1 Trillion in tax cuts, and $1B in economic stimulus funds.
The legislation will also create a $500 billion tax credit, and would increase food stamp benefits by $10 per month.