Economic Stimulus Aims To Help South Florida Families

By Congresswoman Debbie Wasserman Schultz

(Weston, FL)  —  The other day I was struck by just how much costs have gone up for South Florida families.  I’d just filled up my mini-van, which in Weston set me back $3.10 a gallon –almost $60 right in the tank, and then I headed over to the local grocery store where I bought a gallon of milk for $4.29.  Both gasoline and milk have gone up over the past year, with both items rising almost $1.00 a gallon just since February of last year, and that is just the tip of the iceberg for most families.

The cost to cool our houses is up, prescription drug prices and health insurance costs are up, if you or your employer can even afford it.  If you’ve got a child in college, tuition costs have gone up.  Combine this with a downturn in the housing market, a lower stock market, slowing job growth and a tightening of the credit markets and South Florida’s families are caught in the middle of an economic downturn.

I’ve been concerned for some time that our economic policies have been skewed to those at the upper end of the wage scale, too often leaving middle class families struggling to preserve their family’s way of life.  It is long past time that we address these issues and restore the American dream.

Since higher prices at the pump and in the grocery store are hitting us at the same time as an economic downturn, immediate action was required in order to stimulate the economy, help working families and prevent a further economic slide.

That’s why I recently joined an overwhelming bipartisan majority in the House of Representatives in support of the Recovery Rebates and Economic Stimulus for the American People Act.  We were determined to act quickly, so that families could receive tax rebates of up to $1,200 per couple, plus $300 per child, as early as mid-May.

The bill passed this month provides a recovery rebate to 117 million families, including 35 million families who work but make too little to pay income taxes, but do pay payroll 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 $819 to Florida families, saving 8.3 million of them a total of $6.8 billion across the state, and creating new jobs.

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 facilities and equipment by speeding up depreciation provisions, so that firms can write off an additional 50 percent for investments purchased in 2008.

Small businesses power our economy in Florida.  This bipartisan bill gives these businesses the incentive to expand their operations, hire new workers and help our economy get back on track.

Importantly, our stimulus package also includes provisions to help families avoid losing their homes to foreclosure.  The legislation 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.