House Passes Legislation That Will Offer Tax Rebates for 7.3 Million New Yorkers ; Democrats Pledge To Continue to Fight For Unemployment Benefits Extension, Increase in Food Stamps, and Other Aid to Seniors & Struggling Families.

Congressman Charles Rangel on Tuesday joined an overwhelming bipartisan majority in the House of Representatives in supporting financial relief for more than 100 million people nationwide, including 7.3 million in New York state.

Lawmakers passed H.R. 5410, the Recovery Rebates and Economic Stimulus for the American People Act, by a vote of 385-35. The legislation now heads to the Senate, where swift action is needed so to ensure that families can receive tax rebates of up to $1,200 per couple, plus $300 per child, as early as mid-May.

"This is an historic package that focuses on those who have so often been left behind," said Congressman Rangel. "In fact, this stimulus package will provide tax cuts to millions of families who work hard day after day, yet do not make enough to have income tax liability."

Rangel fought hard to include in the House bill additional help to seniors, low-income and working class people, including increasing Food Stamps and extending unemployment benefits. He is hopeful that Democrats would fight to include these measures in the final legislation and in future proposals.

"We cannot ignore the pressing need to put money in the hands of those who are currently without work through no fault of their own," said Rangel. "This is not a political or ideological argument, it is pure economics. The Congressional Budget Office has identified unemployment benefits as one of the most "cost-effective" means of providing relief and spurring the economy during a slowdown."

MILLIONS TO RECEIVE REBATES

The bill passed on Tuesday provides a recovery rebate to 110 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 $863 to 7.3million families, save them 6.3 billion across the state, and create new jobs.

The bipartisan plan also includes provisions to help families avoid losing their homes by expanding 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.

Tax relief is not being limited to U.S. citizens living on the mainland. Residents living in Puerto Rico, the U.S. Virgin Islands and other U.S. territories will also receive some money, with local governments distributing rebates based on plans approved by the U.S. Treasury Department.

"Both compassion and economics obligates us to remember the ties that bind the United States with Puerto Rico and our territories," said Rangel. "The key to this recovery -- short-term and long-term -- rests on how well we can work together to stimulate all aspects of our economy."

Small business will also get some tax relief. The bipartisan plan doubles the amount small businesses can immediately write off their taxes for capital investments, and encourages investments in new equipment. It also 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.

MORE HELP STILL NEEDEDM

Rangel praised House Speaker Nancy Pelosi and Treasury Secretary Hank Paulson, saying that their efforts should give Americans confidence that their leaders can put partisanship aside to resolve serious issues facing the nation. However, he said that lawmakers must achieve more before taking credit for putting the country back on track.

"Far too many Americans -- hardworking, middle-class, families -- are struggling," said Rangel. "Far too many find themselves in the predicament of having to spend the rebate to put food on their table, shoes on their kids’ feet and roofs over their heads."

The Congressman blamed the Bush Administration for eight years of economic policies that have grown America’s debt, widened the gap between rich and poor, and left many families without money to spend and save. Ultimately, he hopes that enough of the bipartisan spirit will remain in the air so that lawmakers can work on long-term solutions to the nation's woes, starting with the tax code.

"No man or woman who works hard every day should be stigmatized because they can’t afford to take care of their families," said Rangel. "Perhaps we can come together in bipartisan negotiations to bring a greater sense of equity to our tax laws so that families will have more disposable income to contribute to the economy of this great nation of ours."

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