Ryan Votes for Job Creation and Worker Assistance Act of 2002

WASHINGTON – First District Congressman Paul Ryan today voted in favor of legislation that would provide basic relief to workers and businesses that are still suffering from recession. Since September, the U.S. House of Representatives has passed three versions of legislation to stimulate job creation, spark economic growth, and help displaced workers. All three have died in the Senate. Today's vote on a substantially pared-down bill to extend unemployment benefits and provide modest improvements in the investment climate for businesses marks the fourth attempt in the House to move forward on the economic front. Today's legislation (an amendment to the Senate amendment to H.R. 3090) passed in the House by a vote of 417-3.

"We've gone back to the drawing board again to try to make this bill acceptable to Senators who stopped our earlier legislation," Ryan said. "The provisions they couldn't live with are gone, and we should be able to get consensus on this pared-down proposal. Today's package is very basic, but it gives us some hope of action on a few vital points. Although it doesn't go as far as I would like to spark job growth and speed up economic recovery, it will provide much-needed help to workers and businesses."

"My top priorities for inclusion in this legislation were unemployment assistance, expensing provisions to help businesses recover and create jobs, and a health insurance tax credit to help displaced workers get health coverage. We got the first two out of three with this legislation, but I'm very disappointed that the health care tax credit had to be removed to stand a chance of gaining Senate approval. It's frustrating that the Senate opposes a health care benefit that helps displaced workers and their families afford insurance of their choice."

Unemployment Assistance Provisions:

• Provides up to an additional 13 weeks of temporary extended unemployment benefits nationwide for those who exhausted their regular benefits.

• Temporarily expands the availability of regular extended benefits lasting up to 13 weeks in states experiencing relatively high rates of unemployment (specifically by reducing from 5 percent to 4 percent the insured unemployment rate "trigger" above which states can access these benefits.) Note: This is in addition to the first 13-week period.

In both cases, the additional benefits will be 100 percent federally funded and available through 2002.

Tax provisions in this legislation to help businesses create new jobs include:

• Allowing an additional first-year depreciation deduction equal to 30 percent of the adjusted basis of certain qualified property that is placed in service after September 10, 2001 and before September 11, 2004. This will promote business investment and create jobs.

• Temporarily providing a 5-year carryback of net operating losses and waiving the AMT 90% limitation on the allowance of losses (including losses carried forward into tax years ending in 2001 and 2002.) This provision will help stabilize businesses that have been losing money by allowing them to write off based on losses they have suffered. With this measure, they can deduct against their income tax liability over the past five years, putting cash back into businesses to help them stabilize or expand.

• The Work Opportunity Tax Credit would be expanded and targeted to include certain employees in New York City – for employers with 200 or fewer employees and individuals working in or relocated from the Liberty Zone as a targeted group eligible for a modified WOTC.

• The legislation also provides 30% bonus depreciation for property placed in service in the Liberty Zone, $8 billion in tax exempt private activity bonds for rebuilding the portion of the City damaged in the 9/11/01 terrorist attack, allows a total of $9 billion in advance refunding of tax exempt bonds, increases Section 179 expensing to $35,000, allows involuntarily converted properties to be replaced over 5 years, and provides 5-year life for leasehold improvements in the Liberty Zone.