The Hill Report: Week of May 4 - May 9, 2008
Op-Ed
The Hill Report: Week of May 4 - May 9, 2008
This week in Washington, Congress debated federal government action on the housing crisis that has produced serious challenges to our economy as the number of unsold new homes and foreclosed resale homes climb to unprecedented numbers.
I believe that the housing market instability and related economic downturn demand common-sense tax relief solutions proven to stabilize the marketplace and encourage economic growth. As a result, on Tuesday I joined Congressman Lee Terry (R-NE) to introduce the Housing Opportunity for All Americans Act of 2008 (H.R. 5974), legislation to provide a federal income tax housing credit to help stabilize our nation's housing and mortgage markets.
The Housing Opportunity for All Americans Act would provide homebuyers a one-time tax credit of 10% of the home's purchase price, up to $10,000. Homes purchased within a year of the bill's enactment would be eligible for the credit, and the credit may be rolled over if the homebuyer hits his or her limit for tax credits for the year.
Furthermore, this bill represents a concentrated effort to reduce local housing inventories, and consequently excludes: mortgages that exceed the conforming loan limit, and taxpayers who (1) are non-resident aliens, (2) flip a home within the one year period, or (3) sell a house to a relative simply for the credit.
I fully support this responsible plan to provide market-based incentives as a solution for our nation's housing market rather than a costly taxpayer-funded bailout that would increase government intervention in marketplace. Tax relief is a proven means to encourage market correction, providing qualified homebuyers with additional tools to invest.
The bill is modeled after a similar tax credit from the mid-1970s ("Tax Reduction Act of 1975," Public Law 94-12) that was very successful in reinvigorating the housing market and boosting the economy by addressing the same problem in the housing market that we face today: a huge inventory of new homes and homes under construction.
Through a market-based housing tax credit plan, my Republican colleagues and I stand ready to help reduce new home inventory, reduce foreclosures and stabilize the market value of homes, thereby providing relief for taxpayers and a victory for the American economy.
Economic News
With the housing instability, credit crunch, and rising gasoline and food prices, concerns about an economic recession have grown. While our nation's economy has slowed considerably, it is important to note that our economy has not yet reached recession. As you may know, a recession is generally defined as at least two consecutive quarters of economic contraction, and our nation has not recently experienced even one quarter of negative economic production.
The national real gross domestic product (GDP) rate remained at 0.6 percent for the first quarter of this year, mirroring the growth of the previous quarter. For the month of April, the national unemployment rate edged down to 5 percent.
Texas' economy has thus far been remarkably resilient. This year, employment has grown much faster than the national average with the Texas unemployment rate at 4.1 percent and 4.3 percent for February and Marchthe former marking the lowest unemployment in Texas in 25 years.
I continue to believe that tax relief is essential for economic growth and job creation. The tax relief Congress provided in 2001 and 2003 helped restore economic vitality after the economic downturn following 9/11, and I strongly support making this tax relief permanent to provide certainty in the marketplace and to ensure that individuals, families, and business keep more of their own money to invest back into the economy. In Congress, I will continue fighting for lower taxes, smaller government, and market-based solutions that will enable our economy to grow and remain competitive globally.
Down Syndrome Caucus Briefing
On Thursday, I hosted the first Congressional Down Syndrome Caucus briefing along with caucus co-chairs Congressman Patrick Kennedy (D-RI), Congresswoman Cathy McMorris Rodgers, and Congresswoman Eleanor Holmes Norton (D-DC). As you may remember, last week we launched this bipartisan congressional caucus to promote public policies that would enhance the quality of life for individuals with Down syndrome.
This week's caucus briefing focused on public and private sector Down syndrome research being conducted under the leadership of Down syndrome experts Dr. William C. Mobley, Director of Neuroscience Institute at Stanford School of Medicine, and Dr. Yvonne T. Maddox, Deputy Director of the Eunice Kennedy Shriver National Institute of Child Health and Human Development within the National Institutes of Health.
I was pleased to hear of the National Institutes of Health's short-term and long-term research plans, including increased research on the medical, cognitive, and behavioral conditions that occur in people with Down syndrome. Research priorities include:
* The role of a mother's age in increasing the chances of developing Down syndrome.
* Specific genes and gene groups that may play a role in developing Down syndrome.
* The prevalence of dementia and Alzheimer-similar symptoms in adults with Down syndrome.
* Health and education intervention to improve quality of life for people with Down syndrome.
Due to the wide range of physical and mental disabilities associated with Down syndrome, this research can also translate to important medical discoveries for people without Down syndrome who suffer from similar physical ailments or brain diseases such as Alzheimer's disease. Both public and private sector research will be vital to meeting these goals, and I look forward to supporting these efforts in Congress.
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