The U.S. House of Representative passed President Obama's $787 billion stimulus bill today, designed to boost the American economy and save 3.5 million jobs.

The bill must now be approved in the U.S. Senate, where there is significant Republican opposition, but where Democrats have a majority.

The bill contains roughly $282 billion, or 35%, in tax cuts for firms and individuals, including a $400 tax credit per person with earnings under $75k a year, down from $500 previously.

Meanwhile, small businesses can use current losses to reduce taxes paid in previous years, and benefit from a $5.3 billion tax break for corporations to deduct up to $250,000 in taxes on business expenditures.

A stabilization fund for education, police and fire services at the state level was set at $53.6 billion, and $87 billion was allotted for Medicaid.

The final version of the bill scales back on tax credits to new home and new car buyers.

The final version of the package also contains a softer version of the controversial "Buy American" clause, which now stipulates that all government spending from the plan must use American-made products and labour, but only if they don't violate current trade deals with U.S. trading partners.

The original version of the clause sparked international outrage over its protectionist nature.

By Megan Ainscow
©CEP News Ltd. 2009