Another press release from Walz's congressional office:
Today, Congressman Tim Walz joined 384 of his House colleagues in voting for the bipartisan Recovery Rebates and Economic Stimulus for the American People Act of 2008. The emergency stimulus package provides tax rebates this spring of up to $600 for an individual and up to $1,200 for a married couple, plus $300 per child. A total of 117 million families will receive a check. The package also includes mortgage lending reforms and additional write offs for small businesses.
"American families are hurting and this package provides them with badly needed relief," said Walz. "I'm pleased that Democrats and Republicans came together and found agreement on helping every day Americans. We will continue to monitor the economy and to work together if additional actions are necessary to spur the economy."
"Under this plan, a single mother with two children making $15,000 will get a $900 rebate. That is real money in the pockets of working people who desperately need the assistance," said Walz. "When it comes to the economy, this legislation is a clear sign that Washington's priorities have changed. A few years ago, big business would have been the priority during an economic downturn. Today, every day Americans are first on the agenda, and that is a change we can be proud of."
The following provisions are included in the legislation passed by the House:
Broad-Based Relief for Individuals
* Tax Cut for 117 million Families. This broad-based stimulus package will provide tax relief of up to $600 per individual and $1,200 per married couple, plus an additional $300 per child. Recovery rebate checks could be sent as early as mid-May, getting money to Americans who will spend it immediately to reinvigorate the economy.* Unprecedented Tax Relief for Working Families. The measure provides $28 billion in tax relief for 35 million families who work but make too little to pay income taxes -- families who otherwise would not have been included in this recovery effort. More than 19 million of these are families with children. Americans who earned at least $3,000 in 2007 will get at least $300 per single and $600 per couple, plus a child tax credit of $300 per child. Economist Mark Zandi of Moody's Economy.com estimates that tax rebates that include low- and moderate-income families are 24 percent more effective as stimulus than rebates that leave these families out.
* Tax Fairness and Targeted Rebate. Nearly $50 billion of the rebate will go to middle-income Americans and those aspiring to it --making less than $50,000. The wealthiest taxpayers are not eligible for this relief. Tax relief begins to phase out above incomes of $75,000 for a single and $150,000 for a married couple.
* American families are struggling in weakening economy. Family incomes and home prices are down as health care, energy, food, and education costs and mortgage foreclosures have climbed. No wonder American families falling behind on their bills and consumer confidence is at a five-year low.
Helping Families Avoid Foreclosure
* Increasing Affordable Refinancing Opportunities and Liquidity in Housing Market. For 2008, the bill increases the FHA loan limits up to $729,750, to expand affordable mortgage loan opportunities for families at risk of foreclosure through the Federal Housing Administration. To enhance credit availability in the mortgage market, the measure includes a one-year increase in the loan limits for single family homes from Fannie Mae and Freddie Mac from $417,000 up to $729,750 for 2008.Encouraging Business Investment
* Small Business Expensing. The bipartisan plan doubles the amount small businesses can immediately write off their taxes for capital investments made in 2008 from $125,000 to $250,000, for purchases of new equipment of up to $800,000 (from $500,000).* Bonus Depreciation. It provides immediate tax relief for all businesses to invest in new plants and equipment by speeding up depreciation provisions, so that firms can write off an additional 50 percent for investments purchased in 2008.
The measure is needed for short-term relief. However, we must wonder when a serious discussion will begin in Washington about long-term economic policy that helps create better wages for working Americans.
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