| (Cross posted at Tom Reynolds Watch)
Congress recently approved the Recovery Rebates and Economic Stimulus for the American People Act of 2008, or H.R. 5140. Tom Reynolds voted in support of this bill, which is the only positive of this whole story. The problem? Reynolds has consistently voted against the middle class throughout his congressional career. In today's Journal-Register there is an article about, among other things, Reynolds' support for the Bush economic stimulus package.
Reynolds conveyed support for President George Bush's $150 billion tax rebate plan as a means to stimulate the economy. The hope is that millions of Americans will use the money for extra purchases - toward appliances or cars, perhaps - that they otherwise wouldn't have been able to afford. It could double expenditures, he said.
Under the plan, couples will receive up to $1,200; single individuals, $600. Those who make more than $150,000 per household will not receive a check.
"There are also no tax hikes with this," Reynolds said.
Reynolds made no mention of economists' predictions that families will store the money away in preparation for the forthcoming recession, thereby negating the purpose of the rebate.
There's a few things with this economic stimulus package that Reynolds would be very interested in. |
First, a summary of the economic stimulus package:
The Recovery Rebates and Economic Stimulus for the American People Act is based on the economic stimulus package House leaders negotiated with the Bush Administration. The package includes two major components: rapid tax rebates for American households and tax incentives for businesses to invest, as well as provisions increasing the size of home mortgage loans that the Federal Housing Administration (FHA) can insure and that the quasi-governmental enterprises Fannie Mae and Freddie Mac can purchase. The tax rebates are valued at a maximum of $600 per individual and $1,200 per married couple, with an additional $300 for every child. Everyone with an income greater than $3,000 a year would be eligible -- including senior citizens living on Social Security and disabled veterans receiving disability benefits -- with the rebate amounts phasing out at higher income levels ($75,000 for individuals and $150,000 for couples). In total, the rebates are worth more than $100 billion. The business incentives are worth approximately $50 billion and include bonus depreciation - a temporary tax write off for all companies that purchase new equipment in 2008. In addition, small businesses can double their tax write offs for capital investments and new equipment. The home mortgage provisions temporarily increase the maximum mortgages that Fannie Mae and Freddie Mac can buy from $417,000 to $729,750. The bill would also allow the FHA to permanently insure mortgages as large as $729,750.
Just for the record, in the 2008 election cycle, one of Reynolds top 20 contributors would certainly be affected by this. Fannie Mae has given $5,000 to Reynolds this cycle. Gee, I hope that isn't the reason Reynolds voted for this legislation.
In any event, Reynolds voted for this bill to support the middle class, yet he has failed to support the middle class citizens of the 26th congressional district throughout his congressional career. Plus, if you noticed, this economic stimulus package was dubbed (by Reynolds, presumably) as a Bush tax rebate plan. So what does that mean Tom? Do you support anything with President Bush's name on it before you support the needs and demands of the middle class?
|
