Stimulating the Economy

Americans remain concerned that we are heading into a recession.  The stimulus legislation enacted into law is one important step we can take in the near term to help prevent an economic crisis. 

It puts money into the hands of the American people.  Most individuals who file a 2007 tax return will receive a tax rebate of up to $600, and couples will receive up to $1,200.  Families with children will get an additional $300 per child.  The exact amount of the rebate will depend on the amount of taxes a filer pays, but most people who qualify for a rebate will get at least $300. The stimulus package also includes rebates for many of the millions of Americans who rely on Social Security benefits or veterans benefits. 

The stimulus bill gives tax incentives to businesses to encourage them to invest and expand.  Small businesses are especially important to our economy, accounting for almost half of our nation’s productivity and creating nearly two-thirds of all new jobs.  These tax incentives will help small businesses meet the economic challenges ahead. 

The stimulus bill also contains provisions for increasing the Federal Housing Administration, Fannie Mae and Freddie Mac loan limits.  These financing opportunities will help families save their homes from foreclosure and also stabilize neighborhoods hurt by foreclosures and declining house prices. The results will provide a boost to the housing sector and the economy.
 
However, injecting money into the economy alone will not solve all the problems we face.  We must also develop a long-term strategy that will both help us get a handle on our nation’s growing debt, while investing in economic foundations that will help our economy stay strong.
 
We need to get back on track toward fiscal responsibility.  Our priorities must be to create a stronger foundation on which our economy can grow.  That means providing a top-notch education to our children, creating a cost-effective health care system, and adopting a clean-energy policy aimed at making us energy self-sufficient.  But it means making investments in these key areas without having to borrow against our childrens’ and grandchildrens’ futures. Senate Democrat have recommended a budget blueprint for next year that seeks to get our spending back into balance by insisting on returning to pay-as-we-go policies.

There is no doubt that we need both short-term and long-term strategies to revitalize our economy.  By providing an immediate stimulus into the economy while simultaneously planning for the future, we can begin to regain control of our fiscal policies.