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On the Issues: Economic Prosperity

The state of our economy is an issue on the minds of most Americans right now, and I understand the full impact this situation is having on residents of South Florida.  Credit markets have frozen, making it harder for Americans to get small business loans to make payroll for employees, receive loans to help pay for a college tuition, a new car, or household appliances such as a refrigerator.  Americans are also watching their pension funds and retirement savings disappear.  While this economic meltdown was started by Wall Street, the crisis is now being felt by middle class Americans.  
                    
In an emergency effort to address our Nation’s financial crisis, Congress passed H.R. 1424, the “Emergency Economic Stabilization Act of 2008.”  This emergency legislation will help free up the credit markets by permitting the government to purchase assets in financial institutions or invest in the banking system.  Importantly, H.R. 1424 ensures that the American taxpayers receive returns on the government purchases or investments.  In addition, any financial institution receiving government assistance must adhere to standards prohibiting the CEO of the financial institution from receiving a golden parachute.  H.R. 1424 also temporarily increases the Federal Deposit Insurance Corporation insurance limits on personal accounts from $100,000 to $250,000.          
              
The increasing number of foreclosures and the cost of gas, home energy, property taxes, homeowners insurance, and prescription drugs are making it more and more difficult for middle class families to get ahead.  In this vein, I am supportive of efforts to produce economic stimulus legislation that puts money back in the hands of the people.  Such legislation, however, must include seniors and others in our community who need this help the most. 

Following a meeting with President Bush on January 22, 2008, congressional leaders from both parties agreed to work together to produce an economic stimulus package to reverse the economic trends that appear to be leading to a recession.  This initial agreement culminated in the creation of H.R. 5140, the “Recovery Rebates and Economic Stimulus for the American People Act of 2008.”  This bill would grant tax rebates of $600 to individual taxpayers ($1,200 to married couples filing joint returns, plus $300 for each dependent child); as well as provide for a minimum tax rebate of $300 ($600 for joint returns) for taxpayers with earned income of at last $3,000.  It would also raise the statutory ceiling on mortgages that can be purchased by Fannie Mae and Freddie Mac in an attempt to ease the burden on prospective homeowners and those who recently purchased homes. 

I, however, chose to vote against the originally version of the stimulus package that was passed in the House of Representatives on January 29, 2008.  Although the stimulus package provided much-needed rebates to working Americans, many senior citizens who live off Social Security as their sole source of income were ineligible for tax rebates.  In fact, AARP estimated that the stimulus package would have left out over 20 million senior citizens.  The legislation also lacked critical funding for food stamps and an extension of unemployment benefits for the many Americans currently without jobs.  Senior citizens in America are under enormous financial strain, and I could not in good conscience endorse a stimulus plan that would leave them out.  So many Floridians depend on Social Security as their sole source of income, and lately those monthly checks simply can't keep up with the skyrocketing costs of prescription drugs, property taxes, and energy prices.  Seniors are no different from the rest of the middle class Americans struggling to get by in this challenging economy.

After the original stimulus bill was passed by the U.S. House of Representatives, I reached out to Democratic leaders to advocate the inclusion of seniors in the stimulus plan.  I strongly supported Senate Democrats in their work to revise the stimulus package accordingly.  I was pleased to be able to vote in support of a revised stimulus package that included seniors.  This revised stimulus package was passed by the Congress and signed into law by the President on February 13, 2008.  While I was disappointed the revised stimulus package did not include important funding for food stamps and an extension of unemployment benefits, I continue to support efforts by the Democratic leaders to craft a second stimulus package that includes such crucial assistance for Americans currently without a job.  Please know that I am committed to improving the lives of working Americans, and will be working closely with my colleagues to ensure policy is enacted that will provide for a more prosperous future for America.