Today’s vote on the floor of the house is one that will undoubtedly be on the minds of Americans for years to come.  The bipartisan legislation that passed in the Senate and which was voted on today added significant new protections for taxpayers on Main Street, including increasing the amount of bank deposits insured by the government from $100,000 to $250,000 through 2009 and protecting 21 million middle-class families from getting hammered by the Alternative Minimum Tax (AMT) for tax year 2008. It also guarantees that irresponsible corporate and Wall Street executives will not be rewarded with golden parachutes or severance pay.

As a result of the drastic improvements made in the Senate legislation compared to the Bush Administration’s plan, which I voted against, I voted in favor of the newest plan because it protects New York taxpayers from higher income taxes under the AMT and will save jobs in Western New York.  From the beginning my colleagues and I knew that our current economic turmoil was not something we could wish away and if this legislation had failed to pass American jobs would be in jeopardy and small businesses would have faced problems growing financially and creating and retaining jobs.

On Monday, I voted against a bad bill, which did not provide protections for taxpayers and did not address the fundamental problem that caused our economic crisis.  Today’s legislation was a significant improvement, one which I hope will restore confidence in our financial markets and allow for small business in Western New York to continue to grow and flourish.  This has been a very difficult decision, one in which the input from you my constituents was a key component.  I want to thank everyone who has called and emailed my office over the last two weeks and encourage everyone to continue to do so.

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Late last night the House wrapped up their business for the week by passing the College Opportunity and Affordability Act (H.R. 4137) and the Economic Stimulus Package. The College Opportunity and Affordability Act provides access to college for low- and middle-income students by strengthening Pell Grants, exposing problematic financial aid practices, and updating programs to better meet the needs of the current student populations. It is an injustice when skyrocketing tuition forces potential students to withdraw or abandon their dreams of pursuing higher education. This legislation holds colleges and universities accountable to ensure that students from all walks of life have access to the same programs, benefits, and services when pursuing higher education.

After weeks of discussing the economic stimulus plan, the House passed the updated version of the bill that extends the rebates to include seniors who live off their Social Security benefits, as well as our disabled veterans. This extension ensures that those who made this country what it is today receive funding from the package. Although this package will provide a short-term fix by offering relief to cash strapped Americans and businesses, it is important to note that this plan is only a short-term solution. Over the next few weeks and months, Congress will be discussing how to stabilize our economy for the long-haul and it is my hope that these talks are held in the same bipartisan fashion as the past few weeks.

 Also yesterday I cosponsored a resolution to condemn the inexcusable action of the Berkeley, CA City Councils’ treatment of U.S. Marines. On January 29, the Berkeley City Council passed three resolutions regarding the Marine Corps.  The first directed the City Attorney to investigate Marine recruiters for violating the city’s anti-discrimination laws.  The second directed the City Manager to send letters to the Marines telling them that they were “uninvited and unwelcome intruders.”  The third commended Code Pink for its harassment of the Marines. The behavior of the Berkeley City Council is disgraceful. The City Council has chosen to voice their displeasure with the war at the expense of our brave men and women in uniform. It is my hope that this resolution will come to the floor next week so we, on both sides of the aisle, can reaffirm our commitment to the U.S. Marines.

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Today Congressional leaders from both parties and the Bush Administration agreed on an economic stimulus on behalf of middle-class families and small businesses. Their plan puts money back in the hands of hard working Americans and does not include any unrelated tax hikes. This agreement is not only beneficial to the American people, but it also shows that members of Congress can put aside their political differences and act fast to accomplish a bipartisan goal. 

Also important to note is that this plan is a short-term solution. We must continue to work to keep taxes low and invest in business growth and sustainability to maintain a thriving economy. The best economic stimulus is a job and the government can not forget that. We must give manufacturers and businesses the incentive to invest in America and create American jobs. We must encourage small business development since they are America’s primary employer. Below is a list of the tax benefits of this agreement.

Summary of the Economic Growth Package Agreement 

Tax Relief for American Families:   Rebate Checks: The economic growth package will include rebate checks in the sum of two separate calculations, with an overall phase-out for those with adjusted gross incomes above $75,000 for a single taxpayer and $150,000 for married couples. Rebate checks will include a base amount determined by the greater of two options: (a) Income tax paid in 2007, with a maximum of $600 for a single taxpayer and $1,200 for married couples; or (b) $300 for an individual and $600 for a married couple, provided the individual or couple earned income of at least $3,000 in 2007. A children’s bonus also will be included in the rebate check calculation.  Anyone qualifying for the base amount also receives an additional $300 per child, with no cap on the number of children.

Tax Relief for Employers:   Bonus Depreciation: The economic growth package will provide for a 50 percent bonus deduction on new equipment in the year it is placed in service, with certain exceptions for equipment with a “long life.”  This temporary tax cut offers significant savings on new property with a depreciation period of 20 years or less.  This will give employers – particularly small businesses – greater incentive to invest and create jobs for more Americans searching for work.  The temporary bonus depreciation, coupled with expensing measures enacted in May 2003, resulted in a four percent increase in business spending in the first six months alone.

Section 179 Expensing: This provision allows employers, including small businesses, to fully expense $250,000 in both new and used tangible property in the year it is purchased up to an overall investment limit of $750,000.  This will provide a particularly strong incentive for small companies to invest in their businesses so they can continue to provide good-paying jobs for the American people. Increase in Government Sponsored Enterprises (GSE)/Federal Housing Administration (FHA) Conforming Loan Limit: The conforming loan limits for both FHA and GSE (such as Fannie Mae and Freddie Mac) loans would be increased from $362,000 to $725,000 and from $417,000 to $625,000 respectively.

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Today Congress heads back into session, and with talks of a plummeting economy and the dreaded “r” word (recession), we have a lot of work to do. Last week House Speaker Nancy Pelosi (D-CA) pledged “early action to stimulate and strengthen the economy” when Congress returns to Washington.  And while her pledge may sound like welcome news, if you look at the Democrats’ record over the last year, you’ll find that it’s one filled with numerous votes to increase taxes on families and small businesses.

 The Hill reports this morning: “A real fear for the business community is that Democrats will attach tax increases to offset the legislation’s price tag, which could reach as high as $100 billion.  ‘Anything that has tax increases in it is not a stimulus,’ a tax expert at the National Association of Manufacturers (NAM), Dorothy Coleman, said.”

Maybe I am confused, but raising taxes on the middle class to ease cost for the middle class seems like a huge contradiction. Instead of increasing taxes, why can’t Congress work in a bipartisan way to help Americans families ease the pain at the pump and pass legislation that decreases the foreclosure rates and helps with rising mortgage payments. Consumers need cash and increasing taxes will only limit the cash available to spend on goods and services. This economy still has a chance to rebound but raising taxes is not the answer. 

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Today the U.S. Department of Labor released its jobs report for December. They found that fewer jobs were created last month than at any time in the previous four years. When House Democrats took the gavel 12 months ago they promised to protect the middle class. But the Democratic leadership has not been so kind to the American family and small business.  They passed bills raising taxes by more than $200 billion and proposed tax hikes that threaten more than 16 million jobs.  They asked taxpayers and small businesses to bankroll nearly $180 billion in new entitlement spending and pork-barrel projects such as a Woodstock museum in New York.

An editorial in yesterday’s Pittsburgh Tribune-Review spotlights this undeclared War on American Jobs:

“After an estimated $200 billion in tax hikes secured by congressional Democrats, 2007 wasn’t exactly a banner year for businesses or middle-income families, which will see their disposable income shrink.  And that’s just the beginning of Americans’ pain.”

“Under an ‘08 agenda for still higher taxes, union coddling and business regulation, the party of Big Government is on pace to threaten 16 million jobs and boost taxes by $3.5 trillion over 10 years, according to House Republicans.”

“Their report, ‘Death by a Thousand Cuts: Democrats’ War on American Jobs,’ has raised the ire of more than a few Democrats.” 

“House Majority Leader Steny Hoyer, D-Maryland, says it’s an outrageous title that fails to properly consider the Democrats’ ‘pay-as-you-go’ fiscal policies.  Except that ‘pay-go’ in the Democrats’ parlance means paying more for government expansion rather that cutting waste, fraud and abuse.”  – The report “Death by Thousand Cuts: Democrats’ War on American Jobs” was released last month by Republican House leadership.

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