About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from October 2012 through December 2012 1 (February 2013)

handle is hein.congrec/cbo10991 and id is 1 raw text is: FEBRUARY 2013 Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from October 2012 Through December 2012 In February 2009, in response to significant weakness in the economy, lawmakers enacted the American Recovery and Reinvestment Act (ARRA). The legislation's numer- ous spending and revenue provisions can be grouped into several categories according to their focus: Providing funds to states and localities-for example, by raising federal matching rates under Medicaid, pro- viding aid for education, and increasing financial sup- port for some transportation projects; Supporting people in need-such as by extending and expanding unemployment benefits and increasing benefits under the Supplemental Nutrition Assistance Program (formerly the Food Stamp program); Purchasing goods and services-for instance, by fund- ing construction and other investment activities that could take several years to complete; and Providing temporary tax relief for individuals and businesses-such as by raising exemption amounts for the alternative minimum tax, adding a new Making Work Pay tax credit, and creating enhanced deduc- tions for depreciation of business equipment. When ARRA was being considered, the Congressional Budget Office (CBO) and the staff of the Joint Commit- tee on Taxation estimated that it would increase budget deficits by $787 billion between fiscal years 2009 and 2019. CBO now estimates that the total impact over the 2009-2019 period will amount to about $830 billion. By CBO's estimate, close to half of that impact occurred in fiscal year 2010, and more than 90 percent of ARRAs budgetary impact was realized by the end of December 2012. Various recipients of ARRA funds (most recipients of grants and loans, contractors, and subcontractors) are required to report, after the end of each calendar quarter, the number of jobs funded through ARRA. The law also requires CBO to comment on those reported numbers. During the fourth quarter of calendar year 2012, recipi- ents reported, ARRA funded more than 113,000 full- time-equivalent (FTE) jobs.2 Those reports, however, do not provide a comprehensive estimate of the law's impact on U.S. employment, which could be higher or lower than the number of FTE jobs reported, for several reasons (in addition to any issues concerning the quality of the 1. Public Law 111-5, sections 1512(c) and 1512(e); 123 Stat. 115, 288. Public Law 112-204, enacted on December 4, 2012, changed CBO's reporting requirements; the agency's reports on ARRA will now be prepared annually, rather than quarterly. This report is the 14th in CBO's series of quarterly reports. For the pre- vious report, see Congressional Budget Office, EstimatedImpact of the American Recovery and InvestnuitAct on Emqloyment and conomic Outputfromful )20.12 Trough September 2012 (November 2012). 2. Data compiled from recipients' reports (on jobs funded and other information) are shown at wwwrecovery go. Recipients were asked to calculate FTEs by taking the total number of hours worked in a quarter that were funded by ARRA and dividing the total by the number of hours that a full-time employee would have worked in that quarter.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most