Issue Position: Economy

Issue Position

The recent economic downturn has affected San Diegans from all walks of life. Susan has heard from many constituents concerned about the health of our economy.

Recently, Congress passed and the President signed an economic stimulus package that seeks to head off instability in the subprime mortgage market and to prevent it from spreading into the larger economy. During the development of this stimulus package, our country's most experienced and knowledgeable economists from all sides of the political spectrum were consulted. The final version that was signed into law represent the consensus opinion of these economic experts based on the most recent research on to get the "best bang for the taxpayer's buck."

This stimulus package would speed relief to those who have been most heavily impacted by the recent economic slowdown and would put extra purchasing power into the hands of those who are most likely to increase economic activity. These include working families, seniors dependent on Social Security and disabled veterans.

The stimulus package also includes incentives to encourage businesses and especially small businesses to make equipment investments now rather than later. In addition, the stimulus package also looks to address the underlying cause of the economic downturn - the mortgage market.

Specifically, the package provides:

* Tax rebates of up to $600 to individual taxpayers ($1200 for couples) and $300 for each dependent child under 17

* Fully refundable tax rebates of up to $300 ($600 for couples) to low-income with at least $3000 in annual income

* $300 per person for seniors whose only income is Social Security and veterans only receiving disability benefits

* A 50 percent bonus depreciation on equipment purchased and put in place in 2008

* An increase up to $250,000 in the maximum limit small businesses can write off for equipment purchases

* An increase in the maximum limit on mortgages that could be insured by the Federal Housing Administration and purchased by Fannie Mae and Freddie Mac - an especially important change for high priced housing markets such as San Diego

All tax rebates will be based off of April 2008 tax returns. You can calculate how much you are eligible for here .

Although the recently passed stimulus package is an important first step in addressing the current economic uncertainty, Susan understands that this is not enough. Susan is working closely with her colleagues in Congress to address the underlying problems in our mortgage lending markets. This includes punishing predatory lenders, providing borrowers with more information on their financial responsibilities before they take out a mortgage, and increasing transparency and accountability in the overall mortgage market.

In addition, Susan will continue to monitor the situation closely in the weeks and months ahead. Should economic data show weakness spreading into other industries or a further overall slowdown, she is ready to work together with colleagues to pass more legislation to strengthen the economy.

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