Questions for progressives and liberals about Obama's stimulus package? (Clinton, companies, dollar)

[beenhereandthere]

Or even those to the center. The right wing hacks will just probably just continue their attack Obama stance (no matter what) with their answer.
I'm from the stimulus package and I can see how jobs will be created thanks to it, but are taxes going to be raised on the top 2%, those that can afford it to pay for it?
I'm in favor of tax breaks for companies and corporations that don't offshore jobs, those that do can go to hell when it comes to tax cuts.
If there is no plan to pay as much of this money back and just do what W does, pass it on to other administration and/or those that are now 4 to 24 for example in 20 years, than my enthusiasm for it goes right out the window.
I have not heard Obama say anything concrete about paying this back, yet.
Let me know. Thanks

[ovcatto]

Originally Posted by beenhereandthere

I have not heard Obama say anything concrete about paying this back, yet.
Let me know. Thanks

A couple of things, first regarding the bailout of banks and financial institutions. The theory is that by purchasing preferred stock and down written assets at bargain prices when the economy rebounds the government will sell those stocks at a net profit. The second part of the answer, without economic growth, government revenues will proportionately decrease. The vast share of the Federal budget cannot be eliminated so debt will increase accordingly. Without an increase in economic activity there is no way for the government to pay current debt service or to pay down the debt. In fact the national debt may grow as a result. When you think about a $1 trillion dollar stimulus, keep in mind that raises the national debt by just (poor choice of words) 10%. Eventually taxes will have to be raised but in a period when economic growth makes it possible.

See Clinton debt to gdp reduction of the national debt.