Schakowsky Backs Bipartisan Economic Stimulus Plan

SCHAKOWSKY BACKS BIPARTISAN ECONOMIC STIMULUS PLAN

Washington, D.C. — U.S. Representative Jan Schakowsky (D-IL), a Chief Deputy Whip, joined an overwhelming bipartisan majority in the House today to support the economic stimulus package. The Recovery Rebates and Economic Stimulus for the American People Act, which passed by a vote of 385 to 35, will stimulate the economy by providing tax rebates to 5 million households in Illinois.

"Families in Illinois are struggling just to make ends meet, and the economic downturn is only making things worse. Today's bill will help jumpstart our sluggish economy by putting money back in the pockets of hardworking Americans who will go out and spend the money,... said U.S. Representative Jan Schakowsky. "While this bill is a positive first step, we should also extend unemployment insurance, food stamps, low-income heating energy assistance, Medicaid and expand the tax rebate to people on social security. I hope that we can address these issues during the House and Senate conference committee negotiations. We need to make sure that this economic relief reaches the families who need it the most....

The bill passed today provides a recovery rebate to 117 million families, including 35 million families who work but make too little to pay income taxes and 13 million senior citizens. The broad-based stimulus package will provide tax relief of up to $600 per individual and $1,200 per married couple, plus an additional $300 per child. All told, the bill is estimated to provide an average tax rebate of $900 to Illinois families, save them a total of $4.5 billion across the state, and create new jobs.

The legislation also includes tax cuts for small businesses. The bipartisan plan doubles the amount small businesses can immediately write off their taxes for capital investments, and encourages investments in new equipment. Additionally, the plan offers 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.

"Our nation's 27 million small businesses are an economic driving force, producing 75 percent of all new jobs, accounting for more than half of the gross domestic product, and constituting 99 percent of all employers,... said Representative Schakowsky. "Our bipartisan bill gives these businesses incentive to expand their operations, hire new workers and help our economy get back on track....

Importantly, the bipartisan plan also includes provisions to help families avoid losing their homes to foreclosure. The bill expands affordable mortgage loan opportunities for families at risk of foreclosure through the Federal Housing Administration. To enhance credit availability in the mortgage market, the measure also includes a one-year increase in the loan limits for single family homes from Fannie Mae and Freddie Mac.