From Congressman Ehlers

On February 7, 2008, Congress overwhelmingly passed an amended version of the economic stimulus plan, H.R. 5140. I voted in favor of the bill which provides rebate checks to individuals and families and tax benefits for businesses. It also increases the limits on loans that can be insured by the Federal Housing Administration and purchased by Fannie Mae and Freddie Mac, which will help stabilize our housing market. This bill injects $152 billion into the economy in 2008, which is about 1% of our gross domestic product. The rebates checks will likely be sent out by the Internal Revenue Service beginning in May.

Anyone who earned at least $3,000 in “qualifying income” during 2007, but paid little or no income tax, will qualify for checks of $300 ($600 for married couples filing jointly). “Qualifying income” includes wages, Social Security benefits, and payments to disabled veterans or their survivors. This means that over 20 million Social Security beneficiaries and 250,000 handicapped veterans or their survivors will qualify for rebate checks.

Those taxpayers that make more than $3,000 and who pay federal income taxes will receive rebate checks of $600 ($1,200 for couples filing jointly). Eligibility for the rebate checks will phase out for individuals who earn more than $75,000 ($150,000 for married couples filing jointly). Anyone qualifying for a check will receive an additional $300 for each dependent child under the age of 17. The bill also ensures that illegal immigrants will not be eligible to receive these benefits.

For businesses, the stimulus bill will provide enhanced depreciation and expensing intended to spur investment in equipment that can be put into service this year. Hopefully, this incentive will encourage businesses to buy more goods and hire new employees.

Although I voted for this bill, I am disappointed that it did not include a provision to extend unemployment benefits. Michigan continues to struggle with the highest unemployment in the country, and I understand that many willing workers are simply unable to find work. I believe we should continue the unemployment benefits for those who have tried to find work for months and still have not found anything.

I am also very concerned about this bill’s effect on our nation’s debt. If this bill in fact stops a recession, it will be worth it. If it does not, it will certainly be an expensive mistake.

If you have any questions about the economic stimulus plan, please feel free to contact me.

Best Wishes,

Vernon J. Ehlers

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