Wilson Praises Plan That Provides Rebates Without Raising Taxes
Economic Stimulus Plan Overwhelmingly Passes House
Congresswoman Heather Wilson (R-NM) today voted in favor of the economic stimulus plan that passed the House with broad bipartisan support. It now moves to the Senate for consideration. The bipartisan plan will provide relief to families and small businesses, without a tax increase on other sectors of the economy or extraneous spending.
"I am pleased that Republican and Democrat leaders were able to work together to agree upon economic stimulus measures that will give an immediate boost to the economy. These measures focus on encouraging small business capital investment -- where 7 of 10 new jobs come from -- and reinforcing consumer confidence through tax rebates," said Wilson.
"The economic package before us does not raise taxes or contain frivolous spending, and I strongly supported it. However, I still believe the tax cuts in 2001 and 2003 must be made permanent to further strengthen the economy and allow American taxpayers to keep more of their hard-earned money."
Below is a summary of the principles of the economic stimulus plan passed by the House today:
Tax Relief for American Families:
The economic growth package will include rebate checks in the sum of two separate calculations, with an overall phase-out for those with adjusted gross incomes above $75,000 for a single taxpayer and $150,000 for married couples. Rebate checks will include a base amount determined by the greater of two options: (a) Income tax paid in 2007, with a maximum of $600 for a single taxpayer and $1,200 for married couples; or (b) $300 for an individual and $600 for a married couple, provided the individual or couple earned income of at least $3,000 in 2007.
A children's bonus also will be included in the rebate check calculation. Anyone qualifying for the base amount also receives an additional $300 per child, with no cap on the number of children.
Tax Relief for Employers:
The package will provide for a 50% bonus deduction on new equipment in the year it is placed in service, with certain exceptions for equipment with a "long life." This temporary tax cut offers significant savings on new property with a depreciation period of 20 years or less. This will give employers - particularly small businesses - greater incentive to invest and create jobs for more Americans searching for work. The temporary bonus depreciation, coupled with expensing measures enacted in May 2003, resulted in a four percent increase in business spending in the first six months alone.
The Section 179 provision allows employers, including small businesses, to fully expense $250,000 in both new and used tangible property in the year it is purchased up to an overall investment limit of $750,000. This will provide a particularly strong incentive for small companies to invest in their businesses so they can continue to provide good-paying jobs for the American people.
The conforming loan limits for both Federal Housing Administration (FHA) and Government Sponsored Enterprises (GSE), such as Fannie Mae and Freddie Mac, would be increased from $362,000 to $725,000 and from $417,000 to $625,000 respectively.
Democrat and Republican leaders also agreed to not include tax hikes or extraneous spending on unemployment insurance, transportation infrastructure, food stamps, and Medicaid.
Nearly 116 million Americans will be eligible for these rebates, and with timely passage by the Senate could see the money as early as June of this year.