Washington, DC – Tonight, U.S. Rep. John Hall (D-NY19) voted with a majority of both the House and the Senate to send to the President bipartisan economic stimulus legislation that features tax rebates of up to $1,200 per couple designed to kick-start the sagging economy. The legislation passed today makes two important additions to the bill passed last week by the House: it expands rebates to an additional 25 million seniors and 250,000 disabled veterans and clarifies that undocumented workers are prohibited from receiving rebates.

 

"The legislation passed today will be good for the Hudson Valley because the tax rebate checks will quickly put money back in our wallets and also make it more affordable for small businesses to invest in new jobs," said Hall. "It is very important that we were able to include both seniors and disabled veterans in the final package sent to the President, because they too are struggling and desperately need and deserve this financial shot in the arm."

 

The legislation, Senate Amendments to H.R. 5140, Recovery Rebates and Economic Stimulus for the American People Act provides:

 

Broad Tax Rebates for Individuals (about $106 billion in 2008 and $115 billion over 10 years)
• Tax Cuts for More than 130 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 $32 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.
• Recovery Rebates to 20 Million Additional Seniors and 250,000 Disabled Veterans.  The measure provides recovery rebates to anyone who receives at least $3,000 in Social Security income, self-employment income or veterans’ disability payments (including payments to survivors of disabled veterans).  The original House bill provided rebates to 13 million seniors. Residents of the U.S. territories will also receive the benefit.
• Tax Fairness and Targeted Rebate.  The rebates will go to middle-income Americans and those aspiring to it.  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.
• Clarification that undocumented workers cannot get recovery rebates.  The measure includes safeguards to ensure that undocumented workers will not obtain rebates. It requires that all people must have valid Social Security numbers to receive recovery rebates. Undocumented persons cannot hold Social Security numbers and will not be able to access a rebate.

 

A Jumpstart to the Economy
• Relief Helps Financially-Pressed Americans by Putting Money into the Economy. Economists estimate that each dollar of broad-based tax cuts leads to $1.26 in economic growth. Congress will develop a plan of further assistance, which could include extension of unemployment benefits, Food Stamps, state and local assistance and Medicaid.

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 an increase in the loan limits for single family homes from Fannie Mae and Freddie Mac from $417,000 up to $729,750 that covers loans made between July 31, 2007, and December 31, 2008.

 

Encouraging Business Investment (approximately $44 billion in 2008, $7.5 billion over 10 years)
• 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. 

 

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