Nelson Outlines Proposals to Stimulate Economy

Press Release

NELSON OUTLINES PROPSALS TO STIMULATE ECONOMY
With economic indicators increasingly pointing to challenging economic times ahead, Nebraska's Senator Ben Nelson today announced a series of steps that Congress should take to stimulate the economy, assist working families and provide assistance to states.

"It is no secret that our economy is not in the best shape. Unemployment is creeping up, foreclosures are up, and wages are not keeping pace with the cost of living," said Nelson. "Congress must act now to keep our nation moving forward while helping those hardest hit by the current downturn. My proposals offer timely, targeted and temporary relief to stimulate the economy, spur growth and get America on track."

Nelson outlined his proposals in a letter to Senate leadership on January 17. They include tax rebates for low and middle income families, temporary tax policies designed to stimulate investment by business, aid to states including investments in infrastructure and temporary increases in unemployment insurance.

Nelson's plan also includes components to address states' current needs and includes proposals to stimulate the housing market:

Provide fiscal assistance to struggling state budgets, based on Nelson's 2003 proposal, for states to use to meet their individual needs, including transportation infrastructure needs and aid to local governments.
A standard deduction for property taxes for non-itemizing taxpayers so middle- and lower-class homeowners can benefit from the deduction. [Nelson has cosponsored a bill to address this issue previously (S. 2362).]
And a temporary increase in the cap on state housing finance agency mortgage bonds so that state housing finance agencies can increase the number of safe loans they make to qualifying first-time homebuyers which, in turn, would provide a boost to home sales.

"My plan will stimulate the economy and doesn't leave states behind. As a former governor, I know that what Washington does affects state budgets; and it makes no sense to cut taxes in Washington just to see taxes go up in Nebraska or other states," said Nelson. "I look forward to working with the White House and my colleagues in the senate to construct a timely, targeted and temporary economic stimulus plan to spur economic recovery.

In 2003, Nelson played a key role in the debate over an economic stimulus package. He aggressively and successfully advocated for the inclusion of $20 billion in state fiscal relief and was the deciding vote for the bill in the Senate. That state aid directed $108 million in federal assistance to Nebraska in temporary Medicaid assistance and block grants. In a recent survey by the National Council of State Legislatures, many states are again projecting revenue shortfalls or budget deficits. Of particular concern are health care costs, transportation and other capital infrastructure needs, and aid to schools and other local governments.

The summarized proposal can be found here: http://bennelson.senate.gov/documents/news/2008/econ_stim_proposal_2008.pdf

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