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In an attempt to repair the economy and potentially create up to 3.5 million jobs, President Obama has proposed an economic stimulus plan that would cost taxpayers $825 billion. The House of Representatives recently approved the plan, and now it awaits a vote in the Senate. The terms will more than likely be negotiated and revised to satisfy both House and Senate politicians. President Obama is hoping to have a final version of the plan on his desk by mid-February so he can sign it into law and immediately start the spending spree.

Why does President Obama believe spending $825 billion will help repair the economy? Well, President Obama's plan is based on an economic philosophy called "Keynesian economics," which states when an economy is in a downturn and consumers are not spending, the government should spend money to make up for the decline and create jobs. The people who obtain these government sponsored jobs will spend the income they receive on other products and services, and in return help create more jobs and more spending. As a result of the increase in spending, businesses will create more jobs and hire people to produce additional products and services. The cycle continues, and the economy strengthens as these employees spend their income as well.

Roughly 60 percent of the $825 billion stimulus will be used for spending on education, infrastructure, energy, health care, aid to the poor and unemployment. The remaining 40 percent will be used to provide tax credits for payroll taxes, higher education and housing. These tax credits will reduce the total amount of taxes a person must pay, and are fully refundable if a person does not owe any taxes.

Below is an outline of how most of the $825 billion stimulus will be spent:

Tax Cuts = $275 billion

• Payroll tax credits will be provided, and an individual could receive a credit of $500 maximum, and a married couple $1,000 maximum....