REP. BERMAN BACKS BIPARTISAN ECONOMIC STIMULUS PLAN
Legislation will offer tax rebates for 13,300,000 families in California
Rep. Howard Berman 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. The legislation will help stimulate the economy, providing tax rebates to 13,300,000 households in California. Congress is determined to move quickly, so that families could receive tax rebates of up to $1,200 per couple, plus $300 per child, as early as mid-May.
"Families in the 28th Congressional District are struggling just to make ends meet, and the economic downturn is only making things worse," said Berman. "I'm proud of how Democrats, Republicans and the Bush Administration worked together to craft a plan that will give the economy a much-needed boost, and deliver to families the relief they need right now."
The bill passed today provides a recovery 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 $887 to California families, save them a total of 11.8 billion across the state, and create new jobs.
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, and encourages investments 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 power our economy in California," noted Berman. "This bipartisan bill gives these businesses incentive to expand their operations, hire new workers and help our economy get back on track."
Importantly, the 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. 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.