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Washington, D.C., January 29th – Congressman Jim Moran, Virginia Democrat, today joined an overwhelming bipartisan majority in the House of Representatives in support of the Recovery Rebates and Economic Stimulus for the American People Act (H.R. 5104). The legislation will help stimulate the economy, providing an average tax rebate of $933 to 3 million households in Virginia -- checks that could be received as early as mid-May. The bill was passed by a vote of 385-35.
“Leading economists have diagnosed our economy as ailing. These PhD’s prescription: a timely, temporary and targeted economic shot in the arm to get the U.S. economy back on track. Leaders of both parties and the White House came together to design a package that will bring quick and direct relief to the American people who need it the most.”
The bill passed today provides a nationwide tax rebate to 117 million families, including 35 million families who work but make too little to pay income taxes, and 13 million senior citizens. The 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. All told, the bill is estimated to provide an average tax rebate of $933 to Virginia families, injecting a total of $2.8 billion into the State’s economy.
The legislation also includes tax cuts for small businesses. The bipartisan plan doubles the amount small businesses can immediately write off their taxes for capital investments, encouraging investment in new equipment. Additionally, the plan offers 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.
“Small businesses make up half of the U.S. economy, creating two out of every three new jobs,” said Moran. “This bipartisan bill provides an incentive to help expand small business operations, hire new workers and get our economy going full steam ahead.”
The bipartisan plan also includes provisions to help families avoid losing their homes to foreclosure. The bill expands affordable mortgage loan opportunities for families at risk of foreclosure through the Federal Housing Administration – permanently raising their loan limit from $367,000 to $729,750. To enhance credit availability in the mortgage market, the measure also includes a one-year increase in the loan limits for single family homes from Fannie Mae and Freddie Mac, from $417,000 to a maximum of $729,750 – a provision particularly helpful in northern Virginia given the high price of homes.
The Senate Finance Committee is expected to pass their version of the stimulus package this week.
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