[1][2] The bill was a counter-proposal to the American Recovery and Reinvestment Act of 2009 introduced by President Barack Obama.
[1] HR 470 proposes to stimulate the economy without new government spending by implementing a permanent five-percentage point income tax cut for all taxpayers; it also would make permanent current capital gains and dividend tax rates at 15% (current law will allowing rates to rise after 2010).
The bill proposes a one-percent reduction in all non-defense discretionary spending for the fiscal year ending in 2009.
[1][2] Representative Price of Georgia, the RSC chair, described the Democratic proposal, the American Recovery and Reinvestment Act of 2009, as "the non-stimulus plan" and claimed it "simply won't work" because it has no market incentives to create jobs.
[citation needed] Price indicated that Republicans "have a responsibility to provide a coherent and positive contrast" to the Democrats' plans for bigger government.