Rep. Doris Matsui Hails Passage of Economic Stimulus Package

Press Release

Landmark Legislation Will Bring Much-Needed Relief to Sacramento Families

Today, Rep. Doris Matsui (CA-05) joined an overwhelming majority in the House of Representatives passing the Economic Stimulus Package. The bill is a rapid response to the turmoil in the financial and housing markets, and will deliver much-needed relief to Americans.

"Last week, Congress showed we were willing to put aside partisan rancor in favor of addressing the economic crisis facing our nation. We reached out and developed an economic stimulus package to help bring relief to the hardworking families feeling the financial pinch of our economic climate," said Rep. Doris Matsui.

"In Sacramento and across California, we are feeling the strain of our struggling financial and housing markets. With this important first step, we are taking proactive measures to shore up our economy in a timely and targeted way," said Rep. Matsui.

The package, the result of bipartisan efforts by Congress, includes individual tax rebates, tax benefits for small businesses, and reform measures of the lending industry. Once passed by both houses of Congress and signed by the President, hundreds of dollars will go out to American families and workers.

The bill provides approximately $150 billion in tax relief over the next ten years, including:

o The stimulus package will provide a tax cut for 117 million families: up to $600 per individual, $1,200 per married couple, plus $300 per child. Rebate checks could be sent as early as May.

o As part of the individual tax relief, the measure provides $28 billion in tax relief for 35 million families who work and are subjected to payroll taxes but not income taxes. More than 19 million of these are families with children.

o Everyone who earned at least $3,000 in 2007 will get at least $300 per single and $600 per couple, plus the full child tax credit amount of $300.

o 13 million working seniors will receive rebate checks.

The stimulus package will also help families avoid foreclosures. The measure expands affordable mortgage loan opportunities through reform of the Federal Housing Administration. It also provides a one-year increase in GSE housing loans for Fannie Mae and Freddie Mac from $417,000 to $729,750.

The stimulus will encourage business investment by doubling the amount small businesses can write off their taxes for new investments made in 2008 and by increasing the number of small business that are eligible for this tax relief.

"This package is merely the first step. In Congress, we will continue to monitor the financial and housing markets, and take action to shore up our beleaguered economy," said Rep. Matsui.

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