Rep. Neil Abercrombie Statement on 2008 Economic Stimulus Package

Statement

Rep. Neil Abercrombie Statement on 2008 Economic Stimulus Package

I intend to support the economic stimulus package that House and Senate Democratic and Republican leaders have worked out with the White House. However, I have not yet given up on including more short-term measures that would help our economy here in Hawaii.

"Immediate tax relief for working families is welcome. Most of the tax rebate will go to families who make less than $50-thousand, and it's phased out for families who make over $150-thousand.

"Democratic Congressional leaders also insisted on tax relief for the 35-million American families that make too little to pay income taxes, but still pay FICA and other taxes; more than 19 million of these families have children. The President's plan unfortunately did not include them.

"Very important to Hawaii — with our soaring housing costs — are provisions aimed at avoiding foreclosure on homes: increasing the size of mortgages insured by FHA, lowering down payments for FHA loans, increasing loan limits on single family homes that can be purchased by Freddie Mac and Fannie Mae, and allowing homeowners facing default to refinance through FHA.

"I'm pleased that our small businesses were included in the stimulus package, which doubles the amount businesses can deduct for plant and equipment investments made this year and speeds up depreciation, and expands the number of small businesses eligible for the tax relief.

"I would have preferred to see provisions aimed at helping two of our most important industries: hospitality-tourism and agriculture.

"I asked the leadership to consider a change in tax laws to reinstate the allowance for a spouse's travel to be included as a part of business travel expenses, which would promote and expand business travel at negligible cost in lost tax revenue.

"Hawaii's farmers also need help. Because of our geography, nearly all their feed stocks have to be imported, and with more and more feed crops being turned to the production of ethanol and other alternative fuels, feed prices have increased dramatically.

"I'm disappointed that these provisions weren't included, but I'll continue working for their inclusion in the final package."

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