Obama: Tax Cuts Should Take Effect By April 1

It took only a matter of weeks for the notoriously slow Congress to pass the $787 billion economic stimulus package. President Barack Obama signed it into law less than one month into his presidency. So when should people hope to start seeing the benefits of tax cuts in it?
By April 1, according to the president. Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans. Treasury Department has begun directing employers to reduce the amount of taxes withheld from people's paychecks in accordance with the new law, and that in six weeks, a typical family will start taking home at least $65 more every month. Obama says his signature "Making Work Pay" tax break will affect 95 percent of working families. The $400 credit for individuals is to be doled out through the rest of the year. Couples are slated to get up to $800. Most workers are to see about a $13 per week increase in their take-home pay. In 2010, the credit would be about $7.70 a week, if it is spread over the entire year. People who do not earn enough money to owe income taxes are eligible for the credit, an attempt to offset the payroll taxes they pay. Obama's expensive and ambitious package of federal spending and tax cuts is designed to revive the economy and save or create 3.5 million or more jobs. It will inject a sudden boost of cash into transportation, education, energy and health care, while aiming to help recession victims through tax cuts, extended unemployment benefits and short-term health insurance assistance. It also will add to a rapidly growing national debt.

EU Leaders Back Sweeping Financial Regulations

European leaders backed sweeping new regulations for financial markets and hedge funds at a summit Sunday in Berlin as politicians and nations scrambled to tame the global economic crisis. All financial markets, products and participants including hedge funds and other private pools of capital which may pose a systematic risk must be subjected to appropriate oversight or regulation. Top officials from Britain, France, Germany, Italy, Luxembourg, Spain, the Netherlands and Czech Republic agreed on seven key points. A clear message and concrete action are necessary to engender new confidence in the markets and to put the world back on a path toward more growth and employment. European leaders backed Merkel's call for a "charter of sustainable economic activity" to reduce economic imbalances and stabilize financial markets. The charter would subject all financial market activities around the globe to regulation, including credit rating agencies. Merkel said the charter would be "based on market forces but prevent excess and ultimately lead to the establishment of a global governance structure." Other key points included adopting sanctions to safeguard against tax havens and urging banks to keep larger reserves of capital. Officials said a final copy of the summit agreement would not be circulated Sunday, in order to allow European Union members not present to view it first.

Pakistan to Fight Terror By Arming Militias

A Pakistani border region struggling against Taliban and al-Qaeda militants will distribute 30,000 rifles to villagers in hopes that local militias can help the provincial government regain control. Province came after Pakistan's government announced a seemingly conflicting deal in the Swat Valley — a Taliban stronghold within the province — to impose Islamic law if the extremists stop fighting. Similar village militias, backed by the United States, have been credited with reducing violence in Iraq, and a comparable initiative is under way in Afghanistan. Officials would consult with local police before handing out the arms and would take them back if they were not used against terrorists and troublemakers. It did not say when the weapons would be handed out, or if villagers would be armed in the Swat valley, where security forces and Taliban militants are observing a week-old cease-fire while seeking a peace accord.

Australians Flee New Wildfire Flare-Ups

Scores of people fled their homes in southern Australia on Monday fearing that rising temperatures and strong winds could fan blazes burning in forests into unstoppable firestorms. Tensions were high in Victoria, where devastating fires swept a vast area of the state on Feb. 7, destroying more than 1,800 homes and killing more than 200 people in the country's worst fire disaster. Some of the blazes have been burning for weeks in the state, though all fires were being contained in unpopulated areas by firefighters. Residents were warned to either leave early or prepare themselves to fight the fires. The conditions were on Feb. 7, when record temperatures of around 117 F (47 C) and 60-mph (100-kph) winds created what officials have dubbed "Black Saturday." Some 7,500 people were displaced by the fires, and some entire towns lie in ruins. Some sites remain sealed off by police as they search for bodies and evidence of arson. One man has been charged with starting one of the deadly fires, and arson is suspected in at least one other. The confirmed death toll stands at 209 and is expected to rise as more remains are identified from the ruins.

Corruption Undermines Vietnam's Stimulus Program

As governments around the world roll out trillions of dollars in stimulus spending to combat the global recession, debate is raging over whether the flood of money will provide much more than a short-term economic boost and whether much of the cash will ultimately be wasted. With the number of poor growing and reports of some going hungry, communist officials in Hanoi recently decided to hand out $12 to millions of impoverished Vietnamese. It appears that many of the cash handouts were pocketed by corrupt local officials. In some cases, fees were deducted or the gifts were taxed to the point there was little left, according to local police. Families in Quang Binh province complained that they were required to sign receipts acknowledging they had received the handouts, but some villagers say more than 90% of the funds were siphoned off by petty bureaucrats. Under the unusual giveaway, Vietnamese living below the poverty line (defined by the government as those earning less than $15 a month) qualified to receive a gift of 200,000 Vietnamese dong, or about $12. Families were entitled to a maximum of $57. Though it may seem a paltry sum, the cash was a windfall for Vietnam's 10 million poorest. But Hanoi on its own can't change the course of global events.

Israel: No Cease-fire Until Soldier Returns

Top Israeli Cabinet ministers Wednesday set a series of tough conditions for accepting a proposed cease fire in Hamas, saying there would be no deal until the Islamic militant group releases a captured Israeli soldier. The unanimous decision by the 11-member Security Cabinet was likely to set back Egyptian efforts to broker a long-term truce. There was no immediate reaction from Egypt or Hamas. Israel has been demanding an end to Hamas rocket attacks and arms smuggling and the freedom of Sgt. Gilad Schalit, who was captured in a cross-border raid in June 2006. Hamas wants an end to Israel's devastating economic blockade of Gaza, including the opening of its border crossings. In their decision, the ministers said there could be no deal on the borders before Schalit comes home safely. Hamas wants hundreds of Palestinian prisoners released in exchange for the captured soldier, including some convicted of participating in or planning some of the bloodiest Palestinian attacks against Israel. The prospect of notorious killers going free has provoked heated debate in Israel and could delay the deal as the government sifts through the list of prisoners Hamas wants freed.

3.5 Million Jobs

Congress has put together a $789 million dollar stimulus package to help the economy. The plan will is suppose to create 3.5 million jobs. The new plan will provide aid of states, tax cuts for the "middle class", and money for building infrastructure. But most do not take into consideration the fact that we are already losing jobs. A total of 3.5 million people will be out of work and by this time the stimulus package would not be in affect. So this $789 million dollars will go to supporting the unemployed. The stimulus package requires economists who believe unemployment is moving toward 9% to subtract jobs faster than the government is creating them. Many believe that the stimulus package is a lie to give people false hope.