Baca Lauds Legislation Providing 14.7 Million Households in California with Tax Rebates

Washington, DC –  Rep. Joe Baca (D-Rialto) today praised the enactment of a bipartisan economic stimulus plan, after President Bush signed into law the Recovery Rebates and Economic Stimulus for the American People Act.  Because of Congress’ swift action on this plan, 14.7 million families in California will receive tax rebates of up to $1,200 per couple, plus $300 per child as early as mid-May.  The plan is expected to add 500,000 jobs to the economy by getting money into the hands of America’s working families and small businesses.

“I am proud that Democrats, Republicans and the President were able to come together and provide real relief to families in the Inland Empire and throughout the nation,” said Rep. Baca.  “The plan signed into law today will give our economy a boost, create jobs and make it easier for families to meet today’s rising costs.”

The plan will provide a tax rebate for the low and middle-income families who are being hit hardest by the economic downturn. More than 130 million families, including 35 million families across the country who work but make too little to pay income taxes, will receive a tax rebate.  The plan will also provide recovery rebate checks to 28 million households of senior citizens and disabled veterans.

The bipartisan legislation also includes tax cuts for small businesses.  These cuts double the amount small businesses can immediately write off their taxes for capital investments, and encourage investment in new equipment.  Additionally, the plan offers immediate tax relief for all businesses that 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 create jobs and power the economies of our Inland communities,” added Rep. Baca. “This bipartisan stimulus plan has the potential to create 500,000 new jobs and give small businesses everywhere the chance to expand and hire more workers.”

The 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.