Highlights of the President’s Plan

Broad-based anti-recession assistance and tax relief

Five-month extension of emergency jobless benefits

Lower withholding on take-home pay

$500 increase in personal exemption for children

$3,750 health insurance tax credit for low incomes

Unspecified health insurance deduction for middle incomes

Deduction of interest paid on student loans

Penalty-free IRA withdrawals for education

Incentives for home buyers and real estate industry

Temporary $5,000 tax credit for first-time home buyers

Penalty-free withdrawals on IRAs for first homes

Deductions of losses on sale of principal residence

Deduction of “passive losses” for real estate developers

Incentives for pension funds to purchase real estate

General Investment Incentives

Capital gains tax rate reduced to 15.4% from 28%

Expanded depreciation for investment in equipment

Government initiatives to fight recession and promote growth

$10 billion in accelerated federal spending over 6 months

90-day moratorium on new curbs that restrict growth

Less restrictive oversight of banks and other lenders

Freeze domestic discretionary spending, federal employment

Elimination of 246 existing federal programs

Reductions in U.S. defense spending and procurement

$50 billion in additional defense cuts over five years

End B-2 bomber program after 20 planes

Cancel Small ICBM missile program

Halt purchases of advanced cruise missiles