Date: 2008-01-29
Speaker: GEORGE MILLER (democrat)
Chamber: H
State: Califomia

Madam Speaker. the economy needs our help right now. And it will need our help in the longterm as well. The American people dont need expert economic forecasts to tell them that our country and our economy are seriously off track. They experience it every daywhen their paychecks shrink. when foreclosure signs go up in their neighborhoods or even on their own home. and when friends and family members receive pink slips. Its clear that the economy needs help. The bill before us today. the Recovery Rebates and Economic Stimulus for the American People Act. offers an urgentlyneeded first step to boost the economy and help save jobs. The economy may be complicated. but the reasoning behind this bipartisan bill is not. By putting money into the hands of low- and middleincome families who will spend it quickly. we will inject demand back into the economy. While we cant know for sure what the future holds for our economy. we know that we can make a difference if we pass this stimulus package quickly. I am very pleased that this package includes unprecedented tax relief for 35 million American families who work hard every day but earn too little to pay income taxes. Past economic relief packages. including the one developed to respond to the 2001 recession. did not benefit these families. But these families must be included to really help boost the economy. This represents a very significant change in policy thanks to pressure from Speaker PELOSI and Democrats in Congress and I applaud the Speaker for working so hard to ensure that these families and workers were included in our package. Under this bill. a married couple with two children and an annual income of $33.000 will see a rebate of $1.450. A single parent with an annual income of $20.000 and two children will see a rebate of $1.035. This financial assistance will provide substantial relief to families struggling with the rising costs of energy. food. transportation. and other basics. Another important feature of our stimulus plan is the help it provides to homeowners seeking to avoid foreclosure. The bill increases loan limits for singlefamily- houses from Fannie Mae and Freddie Mac from $417.000 to $729.750 for 2008. This increased loan limit will enable qualified homeowners with larger mortgages to refinance their mortgages. lower their monthly payments. and avoid foreclosure. In Contra Costa County. CA. where I live and which I am proud to represent in Congress. the median home price in 2006 was H506 CO more than $640.000. In Solano County. which I also am proud to represent in Congress. the price was nearly $490.000. Both prices are well above the current $417.000 limit. So. the change our bill makes will provide critical help to untold numbers of families in my district and around the country who are struggling to hold onto their homes. Indeed. foreclosures in California skyrocketed in the fourth quarter of 2007. up 421 percent compared with the fourth quarter of 2006. This is an economic crisis that we must address. and our bill takes a strong first step in that direction. We have a responsibility to do everything we can to limit the economic trouble that our country is now facing. We have this responsibility to American workers who could lose their jobs and to families that could lose their financial security. We also know that passing this legislation is only a first step. Thats because our economy faced fundamental problems well before the housing bubble began to burst and the turmoil started in the credit markets. Indeed. ever since the end of the last recession in November 2001. the economy has been growing. But the benefits of that growth went mostly to corporate profitsnot to workers paychecks. Indeed. despite that economic growth. median family income last year was actually lower than it was before the 2001 recession. Since 2001. the number of Americans living in poverty has increased. So has the number of Americans without health insurance. These are longterm challenges that we must continue to address after we pass this shortterm stimulus package. We have an obligation not just to get the economy on the right track again. but also to create a stronger economy that truly benefits all Americans for years and years to come.