December 13th, 2008
10:01 PM ET
6 years ago

Source: Obama to meet with economic team on stimulus plan

The economic stimulus plan in the works by President-elect Obama's team could cost $500-$700 billion over two years.
The economic stimulus plan in the works by President-elect Obama's team could cost $500-$700 billion over two years.

CHICAGO, Illinois (CNN) - President-elect Barack Obama will meet next week with his economic team to discuss the economic stimulus package they are developing, a transition aide for the incoming administration confirmed to CNN on Saturday.

The aide said the team also met with Obama in Chicago on Thursday, the same day the president-elect picked former Senate Majority Leader Tom Daschle for two important roles - secretary of Health and Human Services and director of the White House Office of Health Reform.

The Obama team isn't putting a price tag on its economic stimulus plan, which Democratic leaders want to have ready for the new president to sign either on or very soon after Inauguration Day.

Currently, the initial package is expected to cost somewhere between $500 billion and $700 billion over two years.

On the likely agenda: Funds for infrastructure projects, middle class tax cuts, aid to state and local governments, and money for safety net programs such as food stamps and Medicaid.

Obama has described the package as "the largest infrastructure program ... since the building of the Federal Highway System in the 1950s."

Infrastructure is likely to be the most controversial measure. Many critics say such funding isn't the best way to jumpstart economic activity in the near-term because many infrastructure projects take too long to get under way.

A recovery package also might include an extension of the increase on the maximum loan amounts that qualify mortgages for backing from Fannie Mae, Freddie Mac and the Federal Housing Administration, a measure that House Financial Services Chairman Barney Frank, D-Massachussetts, is advocating. On January 1, the limit will drop to $625,500 from $729,750 in the highest-cost housing markets.

–CNN's Jessica Yellin contributed to this report


Filed under: Economy • Obama transition • Popular Posts
soundoff (180 Responses)
  1. Paula from Illinois

    I think single people should be taxed more simply because they don't
    have the expenses married people do or those who have children.
    The best way would be to have them taxed on a higher scale. This
    is not discrimination–it's a way to have all of us pay our fair share.

    December 13, 2008 08:56 pm at 8:56 pm |
  2. Matt B

    WOW – we voted the President-Elect into office...time to stop playing the race card.

    December 13, 2008 08:58 pm at 8:58 pm |
  3. Still not drinking the Kool-Aid

    Why do you think 95% voted for him? More free money!

    December 13, 2008 08:58 pm at 8:58 pm |
  4. Sue

    This money will come from ending the money grabbing war in Iraq and shutting down the no-bid friends of Bush who are costing us 10 BILLION a month! That's a lot of dollars into someone's pockets, huh? And I don't thin k for a second that they are helping rebuild the country we have trashed. The money will not come because Obama is going to tax us to death. The Bush tax cuts, surprise, did not do anything for a majority of Americans. They did nothing to create jobs, in fact, the exacerbated the mortgage crisis by cutting capitol gains (for the wealthy) thus encouraging "gambling" on iffy products. So yes, Bush is to blame for this mess. Read the article in "Vanity Fair." Tax cuts are not the way to prosperity...states are hurting because THEY have no cash to fix roads, maintain services...how is your town doing? Mine is in bad shape. Taxes are the dues we pay to live in a civilized society...do you want to pay for your own sidewalks, street lights, sewers, water pipes? How about your personal policeman or mailman? Small government sounds good, but in reality, this is a huge country with many people, and we need a government to do some things for us...we do!

    December 13, 2008 08:59 pm at 8:59 pm |
  5. Jacob

    The money comes from taxing people that make 2 or 3 million a year or more instead of giving them ways to loophole their taxes and not pay a dime. It also comes from adjusting our trade arrangements with other countries. No one is buying our products because it is less expensive to buy foreign products, and they are of higher quality. We need to invest in our manufacturing capabilities as part if the infrastructure growth. There is plenty of money to be had if we tax foreign businessman men who make a killing off us.

    December 13, 2008 09:02 pm at 9:02 pm |
  6. Frank

    Right on, Jacob. When the U.S. starts manufacturing "anything" of
    quality, I'll buy it. The crap this country puts out (with the help of the
    unions), it's no wonder we buy foreign goods far better than anything
    we make and always at a price that doesn't line the pockets designed
    by American greed.

    December 13, 2008 09:09 pm at 9:09 pm |
  7. Lazy american

    Give me some money for nothing.

    December 13, 2008 09:09 pm at 9:09 pm |
  8. Matt B

    Paula from Illinois...nice, the person can't find someone to get married to or can't have children and you want to tax them for it? Bless your liberal heart.

    People, I'm a republican and let me tell you something about Presidnet Bush...he is not a fiscal conservative and he has brought down a world of pain for our nation and taxpayers. Do I think Obama is going to do any better...I hope so but I doubt it.

    And to Victor...if Obama makes us energy dependent, that does not make him a better President than Lincoln, than Washington, than Teddy Roosevelt, than Polk etc... Please read your history and see the accomplishments of these Presidents. I'm not saying Obama can't make it there but making us energy dependent doesn't automatically put him there.

    December 13, 2008 09:16 pm at 9:16 pm |
  9. chris

    FOR THE REP. CRYING ABOUT PAYING HIGHER TAXES .....WAIT YOUR WOULD OF HAPPY GO LUCKY AND LAUGHING AT THE HARD WORKING DEMOCRATES IS CLOSE TO BEING OVER. NOW YOU WILL KNOW HOW IT FEELS TO BE SQEEEEEEEEEEEZED FOR THE MONEY YOU PEOPLE WORK NON-SHALANTLY FOR.DEMOCRATES ARE GOING TO HAVE A FRONT ROW SEAT ON THE FACT THAT YOU WILL BE TAXED OUTRAGIOUSLY AND WE =) WILL GET IT AND BELIEVE ME I WILL GLADLY RUB IT IN YOU FACE. CAN'T WAIT TO WATCH SOME OF YOU WHO GO POOR FROM THIS

    December 13, 2008 09:17 pm at 9:17 pm |
  10. jim h

    jim,instead of giving your a's away,maybe you need to look at who got all the tax cuts and raises durning bush years. it not wealth give away, it is giving some of us who work our a– off a chance to make enough to live on. i know you think you desirve it all but thing maybe changing

    December 13, 2008 09:27 pm at 9:27 pm |
  11. Daniel Cabrera

    " Great galaxies! Open for business?,...think again!, nor in Sandusky,New York,...no place here in this country.
    ECONOMY INJECTED FEAR is eating the mind of the people like a cancer!

    As long CORRUPTION exist in Washington, the finacial spectrum, ...all that people that did steal from all of us,..those CROOKS AND THIEVES from Fannie and Freddie,etc (I know you do remember well )as long they remain in place we will be abused by that almost full democrats congress. They are the ones responsible for all this mess, DO NOT BLAME IT ON BUSH AL THE TIME.

    CORRUPTION IS THE REAL PROBLEM!

    And Obama is for president now! How worst can it gets? You tell me buddy!
    His cabinet is a joke!,...IS THE ALL OF THE SAME FROM YEARS PAST. Correct!, MORE OF THE SAME!

    The CORRUPTION will never stop,... you know, they are his buddies! If by any chance, Obama even talk about a clean-up in goverment and financial sector it will represent his POLITICAL SUICIDE!

    Can you see your COCOZOIDIC MISTAKE NOW?I hope you do! Want a TIME MACHINE to go back in time and undo what you did?He-he-he, SLIM CHANCE!

    You wanted Obama?, EAT OBAMA NOW!

    Sincerely,
    Daniel Cabrera
    Merrillville, Indiana "

    December 13, 2008 09:28 pm at 9:28 pm |
  12. Patrick

    The Republican's dirty trick:

    If 3 million people loose their jobs, as a result of the lack of 15 billion to the automakers, there will be 3 million going on walfare, 3 million that will lead to the increase in unemployment numbers under Obama's watch;

    Instead of seeing it as 3 million working Americans who will contribute towards taxes, imagine 3 million people paying $10 each a week on taxes, multyply that by 52 weeks, and social secuirty which they the politicians have been telling us will be insolvent soon. Shouldn't that be 3 million people contributing towards the national piggy bank!

    December 13, 2008 09:30 pm at 9:30 pm |
  13. tony

    were do you think they got the 700 billion from ?

    December 13, 2008 09:33 pm at 9:33 pm |
  14. patrick

    Just taking my time reading these comments. All I can say is WOW.
    How can anyone in their right mind not blame Mr. Bush and His Republican party. If you look at this the republican party had control of both the House and Senate for the last 2 years of President Clinton's Term and for the first six years of Mr. Bushes. This President has lied to america about the War in Iraq with his Ideas he has put this country in the worse shape it has ever been in during my life time. This President has spent Billions of dollars on a war that never should have happened in the first place just thank if we would have spent that money on our own country? If we ask ourselfs one question are we better off now or 10 years ago when we had President Clinton and His Party in office most of america would answer 10 years ago. I work in Sales with a Ford Dealership and let me tell you if is very tuff right now. When again the Republican led house and Senate gave 700 Billion to the Banks they told America it would be used to have the Banks open up the Credit lines. This has not Happened and in fact it has gotten worse since the Bailout. Now the Big three want money which I agree needs to happen with limits. Again the Republican party does not want this to happen instead some in the Senate say that the automotive bosses should be fired because of there performance. They should look in the mirror and maybe we should fire them for their performance.

    December 13, 2008 09:35 pm at 9:35 pm |
  15. Limbaugh is my Saviour

    Rush said hes moving to an Island he bought and we can all move there with him and hide our money.

    December 13, 2008 09:36 pm at 9:36 pm |
  16. Ron

    Need more Illinois corruption on this team. Blagojevich will be available shortly and he can team up with Obama again.

    December 13, 2008 09:38 pm at 9:38 pm |
  17. TO JEFF

    TO JEFF- WE WANTED CHANGE, AND WE GOT IT. YOU GOT TWO DIMES.WELL!! THAT'S 20 CENT MORE THAN ME. THANKS TO BUSH. AND I BET YOU VOTED FOR HIM." TWICE".

    December 13, 2008 09:41 pm at 9:41 pm |
  18. Wes

    The money for this stimulus comes from debt, PERIOD. Not explicit taxes, but the hidden tax of inflation. All these projects will be funded by money created by the banking institution backed by the Federal Reserve; then this institution turns around and charges us interest on the money they created out of thin air. Obama=change. I think not. You will get the same you got under Bush Jr, Clinton, Bush, Reagan, Carter, Ford, Nixon, and on and on and on. It's time people learn about money and its creation. Until we do something about this, we will repeat the mistakes of our past and continue to be enslaved by the money making machine. Think I'm exaggerating? Start digging a little deeper than CNN.

    December 13, 2008 09:43 pm at 9:43 pm |
  19. AG

    Where is the money coming from?? Its fake money?? All we are is sinking further into debt. Anyone who thinks its because of the wars and we'll get savings from ending the wars are wrong. The wars are funded on supplemental budget requests and not in the formal fiscal budgets that the government operates on.
    Wake up from the malaise the media is pumping out to you. Where are the bread lines? There are none. We are not headed to another 1930s Great Depression. The US had over 30% employment, a drought, and a global economic recession/collapse.

    December 13, 2008 09:44 pm at 9:44 pm |
  20. catmom

    I just wonder where all you Obama haters have been during the past 8 years? You all need to turn off Hannity, Limbaugh and all those other right wing radio idiots and get out more. Have you noticed what is happening in this country or just blinded by hate? Obama is will do what he has to do in order to bring this country back from the edge. I can't wait to see what you all will say when he succeeds. Bottom line, Obama has a lot to do to clean up the mess Bush and Republicans have made of this country, give him a chance. At least let him be sworn in before you try to convince yourselves that it is all his fault.

    December 13, 2008 09:50 pm at 9:50 pm |
  21. Andrew

    I am bored with all the comments on CNN, please be informed before spewing all that hate.
    Happy Holidays everybody

    December 13, 2008 09:50 pm at 9:50 pm |
  22. Danielle

    Hey, don't all the evil rich guys CREATE jobs?? Yepper... That's what got them rich to begin with. And what's gonna happen when they are taxed beyond belief?? They are going to stop creating jobs here, and go overseas, or quit it and shut down... It's not always about Bush, even though he has been quite bad, but come on! Get off blaming Bush for everything (you are safe aren't ya – or did you forget the past).

    Blame congress, pelosi, reid, frank and all of them, that's where the problem lies. And where is this money going to come from (you and me) via taxes. You people have no idea what's in store for you.

    On top of that Obama is going to have a 1 million inaguration ball, why, why, why?? Because he can, and he will stick it to all of us.

    It's up to you, and me, and everyone to fend for ourselves, not the government. If we are to rely on the govenrment, then we are doomed, which I think we're pretty much on that course already!

    I'm sorry to the kids, and the young folk in this country, they have absolutely no idea what's headed to them, thanks to this congress!

    But best wishes to you all. Hold the fort, and fend your own! It's coming!

    December 13, 2008 09:51 pm at 9:51 pm |
  23. Mitchell from MS

    Actually to all you obama peeps. You want to talk facts.

    The Dow was 12000 when NANCY PELOSI A DEMOCRATE became speaker of the house

    TODAY THE DOW IS LESS THAN 9000 BECAUSE DEMOCRATES CAN LEAD BY THEMSELVES.

    IT TAKES GOOD PEOPLE DEMOCRATE AND REPUBLICAN ALIKE TO BALANCE A BUDGET. ONE LAST THING GOD BLESS OUR SOUTHERN STATES FOR NOT HAVING GREEDY UNIONS THAT RUIN THING.

    THE SOUTH HAS RISEN AGAIN!!!!!!!

    December 13, 2008 09:52 pm at 9:52 pm |
  24. TrueIndependent

    To all Republicans – If you have no sensible solution to how to clean the trillion dollar mess you created – please go into a self-induced coma

    @Jeff @ 8.11 – What planet have you been living on for the past 8 years.

    @Paula Illinois@8.56
    Tax single people more? What planet do you live on? Single people with no kids are already paying more – it's called no dependent tax exemption.
    They already pay taxes to fund the schools your children attend, for the roads you and the other 9 members of your family use, for the ER services you and illegal immigrants use., etc.
    Additionally, why should you tax people more simply because they are single – use your bran!

    December 13, 2008 09:52 pm at 9:52 pm |
  25. Don Verlander

    They can throw all the money they want at this. Nothing is going to improve until they lower the mortgage interest rates below 5%. That includes jumbo. It is all about housing.

    December 13, 2008 09:54 pm at 9:54 pm |
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