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By Scott Nicholson
Congressional representatives have gotten on board with
economic stimulus packages as national leaders explore ways to
offset a potential recession.
U.S. Rep. Virginia Foxx (R-5) was one of 385 House of Representative
members who voted for a national tax relief measure that would
send between $300 and $1,200 to each taxpayer. Those with children
would also be eligible for a rebate of $300 per child.
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“This
package should create jobs. There should be more emphasis
on the fact we’re helping small businesses with the
deduction for new equipment this year.”
- U.S. Rep. Virginia Foxx on the economic
stimulus plan
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Foxx said, “I think it is a good indication of a bipartisan
recognition that putting tax dollars back in the hands of citizens
is a good way to go. There are 3.5 million million taxpayers in
North Carolina will be getting this, and it’s $3.2 billion
in North Carolina alone. My position is we need to reduce the
burden of the federal government on citizens, cut taxes as much
as possible and reduce the role of the federal government in particular.”
The Recovery Rebates and Economic Stimulus for the American People
Act of 2008 focuses on three areas to boost economic growth: tax
relief for American families, tax relief for employers and home
mortgage lending rule changes. According to Foxx, business
tax provisions include tax incentives for new business investment,
with a particular focus on small business growth. The bill
also increases the lending power of financial institutions like
Fannie Mae to help home-owners struggling with their mortgages.
“While this is not a perfect bill, it is a promising and
bipartisan down-payment on our future economic prosperity,”
Foxx said in statement. “We got it right by keeping all tax
hikes off the table. Congress would be wise to now move to enact
long-term tax relief, which is the best medicine for sustained
economic growth and job creation. The more money we leave in the
hands of small businesses and citizens, the more the economy will
be stimulated, and the more the (national) debt will go down.
“This package should create jobs. There should be more emphasis
on the fact we’re helping small businesses with the deduction
for new equipment this year.”
Lending institutions have been seeking authority to underwrite
house purchases at a higher level, which will help people in high-cost
areas who are in danger of losing homes. The bill now heads
to the Senate for additional debate and vote.
Foxx is concerned the Senate will complicate the issue and try
to add more elements to the bill. “This needs to be kept
very simple,” Foxx said. “That’s the beauty of
it and why it gained so much support. If we don’t get this
out before the February recess, it probably is not going to help
the situation.”
Foxx said third-quarter gross national product rose in the third
quarter last year but dropped in the fourth quarter.
“We’ve had 52 straight months of job creation,”
she said. “That has never happened in the history of this
country. We can probably stave off a recession. Again, this is
a reasonable thing to do and it doesn’t go overboard in trying
to help the economy. Frankly, a lot of talk about recession helps
you go into recession.”
U.S. Sen. Richard Burr (R-NC) introduced legislation Tuesday encouraging
states to suspend their sales tax as an alternative economic stimulus
to the current rebate proposals being debated in Congress. The
Sales Tax Holiday Act of 2008 would establish a national sales
tax holiday for 10 days, beginning April 3, to provide an economic
boost for small businesses and consumers. As proposed, states
participating in the voluntary program would receive significant
financial assistance from the federal government.
“The buying power of the American consumer is the best means
we have for creating economic stimulus,” Burr said in a press
release. “Tax holidays have a strong track record of increasing
consumer purchases and sparking economic growth. By giving people
the incentive to shop, more money will be pumped in our economy,
giving it the boost it needs.”
The proposed tax holiday would run from April 3 through 14 to
cover two full weekends spans two full weekends of shopping before
the April 15 income-tax filing deadline. Burr projected the tax
freeze would reduce the overall cost of goods and services from
2.9 to 7 percent, depending on the state sales tax percentage.
Under the measure, states could voluntarily suspend sales tax
collection for 10 days. The federal government would share the
cost of lost tax revenue with participating states by reimbursing
60 percent of the lost revenue by July 1.
North Carolina already has a state sales tax holiday during the
first weekend of each August, designed to encourage back-to-school
shopping and vacationing. |
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