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NEWS FROM CONGRESSMAN RICHARD E. NEAL
DEMOCRAT FROM MASSACHUSETTS
COMMITTEE ON WAYS AND MEANS
CHAIRMAN, SUBCOMMITTEE ON SELECT REVENUE MEASURES
2208 RAYBURN HOUSE OFFICE BUILDING
WASHINGTON, DC 20515
www.house.gov/neal <http://www.house.gov/neal>
FOR IMMEDIATE RELEASE: January 22, 2009
CONTACT: William Tranghese (202) 225-5601
NEAL WELCOMES WAYS AND MEANS COMMITTEE PASSAGE OF ECONOMIC STIMULUS PROPOSAL
Author of two important provisions included in final package
(WASHINGTON) Congressman Richard E. Neal, Chairman of the Subcommittee on Select Revenue Measures, today welcomed the passage of the economic stimulus proposal by the full House Ways and Means Committee. He said the package, the American Recovery & Reinvestment Bill, “will save and create jobs, provide needed tax relief to millions of Americans and help restore our economy.” He was also pleased that two provisions that he championed were contained in the final bill including the elimination of the alternative minimum tax (AMT) on all private activity bonds (PABs). Neal also advocated a provision that will allow financial institutions to purchase and hold more state and local bonds. He co-authored this language with Congressman Barney Frank (D-MA), Chairman of the Committee on Financial Services.
“I am pleased that the 111th Congress will take up these measures and include them in the economic recovery package. The AMT has been a burden for years on state and local governments. In these difficult financial times, lifting the AMT burden on these projects will bring much needed relief to cities and states and create new jobs. When this package is signed into law, banks will be allowed to purchase more state and local bonds, allowing these local governments to borrow at lower costs. These two measures will provide assistance that is greatly needed to finance important public works projects all across America.” said Neal.
The AMT legislation has received the support of several state and local governments as well as many associations. The Securities Industry and Financial Markets Associations declared that Neal’s bill would “spur demand for private-activity bonds and lower the financing costs for state and local issuers.” The Airports Consultants Council remarked that the Neal legislation would “benefit the traveling public by providing funding for projects that will enhance capacity and safety at airports.” And the National Association of Water Companies said the Neal provision would “help utilities continue to attract capital for environmental infrastructure improvement amidst the current financial crisis at a reasonable cost to customers.”
The bipartisan Neal AMT provision, H.R. 425, was introduced in the 111th Congress and is co-sponsored by Congressman Paul Ryan (R-WI). Congressman Neal is recognized as the leader in U.S. House of Representatives to reform or repeal the AMT. The Neal-Frank proposal, H.R. 6333, was originally introduced in the 110th Congress.
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