Warwick, R.I. – January 29, 2008 – Congressman Jim Langevin (D-RI) today voted for the Recovery Rebates and Economic Stimulus for the American People Act, joining an overwhelming bipartisan majority in the House of Representatives. This bill will help stimulate the economy, providing tax rebates to 400,000 Rhode Island households. The bill passed the House by a vote of 385-35, with 1 member voting present. The Senate is expected to consider its version of economic stimulus legislation shortly.
“Rhode Island families are struggling just to make ends meet, and the economic downturn is only making things worse,” said Langevin. “I’m proud to have helped pass a bipartisan bill that has the support of the Administration and House leaders. We worked together to craft a plan that will give the economy a much-needed boost and deliver to families the relief they need right now.”
This legislation provides a recovery rebate to 117 million families nationally, 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. Estimates indicate that the average tax rebate per Rhode Island family would be approximately $1,000.
This legislation also includes small business relief, including:
• Doubling the amount small businesses can immediately write off their taxes for capital investments, which should encourage investments in new equipment; and
• Offering 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
“Small businesses power the Rhode Island economy,” continued Langevin. “Our bipartisan bill gives these businesses incentive to expand their operations, hire new workers and help our economy get back on track.”
Lastly, this plan includes provisions to help families avoid losing their homes to foreclosure, including:
• Expanding affordable mortgage loan opportunities through the Federal Housing Administration for families at risk of foreclosure; and
• Enhancing credit availability in the mortgage market with a one-year increase in the single family home loan limits from Fannie Mae and Freddie Mac