Legislation Will Offer Tax Rebates for Over 13 Million Families in California

Washington, DC –  Today, Congressman Joe Baca (D-Rialto) joined an overwhelming bipartisan majority in the House of Representatives in support of the Recovery Rebates and Economic Stimulus for the American People Act, which passed by a 385 – 35 vote.  The legislation will help stimulate the economy, providing tax rebates to over 13 million households alone in California.  Because of Congress’ swift action on this matter, many families could begin to receive tax rebates of up to $1,200 per couple, plus $300 per child, as early as mid-May.

“Too many families in the Inland area are struggling just to make ends meet, and the current economic downturn is only making things worse,” said Rep. Baca.  “I’m proud Democrats, Republicans and the Bush Administration 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.”

The bill that 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 $884 to California families, saving them a total of $11.8 billion across the state.  The economic boost the rebate will bring should lead to the creation of many new jobs across both California and the nation.

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.

“Small businesses are the backbone of the American economy,” added Rep. Baca. “Our bipartisan bill gives these businesses incentive to expand their operations, hire new workers and help our economy get back on track.”

“Today’s legislation will be especially beneficial to the 43rd Congressional District,” concluded Rep. Baca.  “With income levels lower than those throughout much of the state, our Inland families will be in line to benefit at an even greater rate from these individual tax rebates.  And with small businesses at the center of our Inland economies, this bill has the potential to create more good-paying, steady jobs throughout our communities.”