Congresswoman Lucille Roybal-Allard (CA-34) Announces Enactment of Economic Stimulus Legislation, Bringing Needed Tax Relief for Working Families
Congresswoman Lucille Roybal-Allard applauded the swift bipartisan passage of the Recovery Rebates and Economic Stimulus for the American People Act, which was signed into law by the President today (2/13/08). The measure is expected to result in rebate checks for working families as soon as mid-May and help create 500,000 jobs by the end of the year.
"More than 130 million families, including seniors and veterans with disabilities, will directly benefit from this economic stimulus measure. Through one-time rebates, the measure will help families pay for necessities such as groceries, utilities and gasoline," Congresswoman Lucille Roybal-Allard said. "In California alone, 14.7 million households will receive an average rebate check of $844, for a total $12.4 billion economic boost in the state."
"I'm pleased Congress united to pass this measure so quickly to jumpstart our lagging economy and help struggling families," Congresswoman Lucille Roybal-Allard said. "However, I consider this measure to be just a start. I hope Congress and the Administration will come together again in the near future to build upon this effort to provide additional assistance for families. We need to consider additional ways to further stimulate the economy, including extending unemployment benefits, increasing the Food Stamp benefit and providing additional state and local assistance, such as through expanded infrastructure investments, to offset and prevent cuts to important social services."
The Recovery Rebates and Economic Stimulus for the American People Act (H.R. 5140) includes:
- Tax Cuts for More than 130 Million Families. This broad-based stimulus package will provide tax relief of up to $600 for single filers and $1,200 per married couple, plus an additional $300 per child. Tax relief begins to phase out above incomes of $75,000 for a single person and $150,000 for a married couple. In order to receive the rebates, taxpayers must have valid Social Security numbers.
- Unprecedented Tax Relief for Working Families. The measure provides $32 billion in tax relief for 35 million families who work but make too little to pay income taxes. More than 19 million of these families include children. Single filers who earned at least $3,000 in 2007 will get at least $300 and couples that earned at least $3,000 last year will get at least $600, plus a child tax credit of $300 per child.
- Recovery Rebates for Seniors and 250,000 Disabled Veterans. The measure provides tax rebates to anyone who receives at least $3,000 in Social Security income, self-employment income or veterans. disability payments (including payments to survivors of disabled veterans.)
- Affordable Refinancing Opportunities and Liquidity in the Housing Market to help Families avoid Foreclosure. For 2008, the bill increases the Federal Housing Administration (FHA) loan limits to $729,750 from $362,790 to expand affordable mortgage loan opportunities for families at risk of foreclosure. In addition, to enhance credit availability in the mortgage market, the measure also provides a one-year increase in loans from Fannie Mae and Freddie Mac for single family homes to $729,750 from $417,000.
- Assistance for Small Businesses and incentives for Business Investments. Small businesses can immediately write off their taxes the cost of new investment expenditures made in 2008 up to $250,000. It applies to companies with over all investments of less than $800,000 in 2008.
- Bonus Depreciation for Businesses. It provides 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.