In the past few weeks, my colleagues in Congress and I came together with the President in a bipartisan way to swiftly pass a stimulus package to help our faltering economy. I worked to ensure that small businesses, the engines of our community economy, were included in the bill and provided with the tools they need to continue investment and growth. I believe that these temporary measures will strengthen the economic health of our businesses, our nation and our families.
Below are the answers to some common questions and concerns I've heard from the community.
Q: What’s in the bill?
A: Tax relief for more than 130 million American families that will boost consumer spending, tax incentives to small business that will help them grow and invest, and an expanded eligibility of FHA-backed loan programs to include homes in upper-middle class areas.
Q: Who gets tax rebates?
A: Most suburban families will be eligible, including those earning over $3,000 in wages, or receiving at least $3,000 in Social Security or veterans’ disability benefits. Tax relief begins to phase out for single people with incomes above $75,000 and couples above $150,000.
Q: How much will my rebate be?
A: Rebates will vary based on income and the number of children in the household. The average Illinois household will see a rebate of $857, slightly higher than the national average of $850. For more information, go to http://www.irs.gov/.
Q: What about seniors and disabled veterans?
A: Social Security benefits, veterans’ disability benefits, and some pensions will be counted as earned income when determining eligibility for rebate checks. Seniors and veterans: you must file a 2007 tax return to receive a rebate check, even if you are not usually required to file!
Q: What measures are included to help my small business?
A: The bill includes tax incentives, first introduced in Congresswoman Bean’s GROW Act, to encourage small business investment in equipment. Previously, businesses could write off up to $125,000 from their taxable income in capital purchases. Now that write-off has been doubled to $250,000 for 2008 only.
Q: Will illegal immigrants get rebates?
A: No. The law requires that you must have a valid Social Security number to receive a rebate, which illegal immigrants cannot receive.
Q: When will my rebate arrive?
A: The rebate checks start arriving in mid-May.
While the stimulus bill was an important measure to swiftly address the economic downturn, we still need to address the contributing factors. The crisis in the sub-prime mortgage industry has spread to effect the entire housing market and our economy as a whole.
Last year, the House passed three bills related to mortgage reform: H.R. 3915, The Mortgage Reform and Anti-Predatory Lending Act; H.R. 1852, The Expanding American Homeownership Act; and H.R. 1427, The Federal Housing Finance Reform Act. These bills are designed to improve consumer protections and increase confidence in the mortgage market while preserving access to credit.
All three bills are still pending in the Senate and I will continue to urge my Senate colleagues to move quickly toward passage.
If there’s more you’d like to know, or if you have other questions for me, please do not hesitate to call or email my office at any time.
Thank you, and it’s an honor to represent you.
