Stimulus could bring Utahns jobs, White House says

The Democratic economic stimulus bill would create or save 33,300 jobs in Utah over two years, give 890,000 Utahns up to $1,000 each in tax cuts, help 24,000 Utah families make college more affordable, and give 74,000 Utahns an extra $100 a month in unemployment benefits.

That's according to a state-by-state analysis the White House released as the Senate approached a final vote on the bill. While it pushed such data to build support for the package, both of Utah's senators still opposed it, predicted it will not work, and blasted it for wasteful spending.

But Christina Romer, chairwoman of the White House Council of Economic Advisors, told Western reporters in a teleconference, "It's a win for every single state in the union." And without it, she said, "We are genuinely looking at a crisis situation of unemployment going into double digits, of losing another 5 million jobs."

Some benefits for Utah, according to an analysis by her office, is it would create or save 33,300 jobs in Utah over the next two years. "Jobs created will be in a range of industries from clean energy to health care, with over 90 percent in the private sector," the analysis said.

However, House Republicans said their alternative proposal that would use more tax cuts would do even more for Utah. It would create 57,000 jobs in Utah, according to an analysis by Republicans on the House Ways and Means Committee, which used the same methodology as the White House estimates.

On another front, the White House estimated the stimulus would give 890,000 Utahns a quick $1,000 through "Making Work Pay" tax cuts that will reduce withholding from paychecks.

"We like the idea of giving 95 percent of Americans that $1,000 tax cut," Romer said. "It gets to working Americans who certainly have had a hard time in the last decade. We think that's something that is going to have good bang for the buck."

But Sen. Bob Bennett, R-Utah, has said such tax cuts will not lead to more spending, because people in tough times save such money — so it provides little stimulus.

Romer said, in contrast, "Our best guess is that those who are in economic trouble actually need the money and will be spending it," especially because it will come through reduced withholding from paychecks instead of one lump-sum check they may be more tempted to save.

The White House also said the package will make 24,000 Utah families eligible for a new American Opportunity Tax Credit to make college more affordable. It creates a new $2,500 partially refundable tax credit for four years of college.

Also, the White House said the package would help an estimated 74,000 Utahns who have lost jobs in the recession with an extra $100 per month in unemployment insurance benefits.