Kerry Calls Reinvestment Plan "An Essential Down Payment" Towards Economic Recovery

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02/17/2009

Kerry Calls Reinvestment Plan "An Essential Down Payment" Towards Economic Recovery

Banks Must Now Be Recapitalized, Kerry Says

FOR IMMEDIATE RELEASE: February 17, 2009

CONTACT: Brigid O’Rourke, 617-565-8252


BOSTON – Senator John Kerry released the following statement following President Barack Obama’s signing of the American Recovery and Reinvestment Act.


“Today, we’ve taken a big step toward digging out this dismal economic downturn,” said Senator Kerry. “This bill is an essential down payment towards a comprehensive economic recovery. But it won’t work unless we immediately solve our bedrock economic problems starting with recapitalizing our banking system and repairing our housing market.”

The following are provisions included in the American Recovery and Reinvestment Act of 2009 that were authored by or previously introduced by Senator John Kerry:

• HIGH SPEED RAIL: As a result of Senator Kerry’s work, the bill includes $8 billion for grants for investments in high-speed rail corridors. The rail provision allows transit projects to receive tax-exempt financing and requires that high-speed trains must be reasonably expected to reach 150 miles per hour. The bill also includes a provision modeled after Kerry’s legislation that would exempt interest from private activity bonds from the Alternative Minimum Tax, including interest from high-speed rail bonds. This change would make bonds more attractive to investors. Investments in high-speed rail can be used to help make necessary improvements to the Northeast corridor.
  
  
• YOUTHBUILD: Senator Kerry secured $50 million for YouthBuild programs nationwide. YouthBuild provides critical job skills to at risk 16 to 24 year olds. The program’s participants also help build quality, affordable housing in communities that desperately need it. As a result of this funding more young people will be able to participate in YouthBuild.
  
  
• MAKE WORK PAY: The “make work pay” provision, as originally drafted, would have excluded federal, state and local retirees who do not participate in Social Security from the $250 payment. Kerry’s amendment fixes the provision to ensure that retirees across the country who do not receive the “make work pay” tax credit or economic recovery payment and do not participate in Social Security are eligible for the onetime payment.
  
  
• EARNED INCOME TAX CREDIT (EITC): Senator Kerry secured two reforms to the Earned Income Tax Credit (EITC) that will decrease the penalty for married couples and increase the tax credit for families with three or more children (an increase of about $600 in the credit). These two provisions will help a total of 7.7 million families nationwide. In Massachusetts an additional 12,000 taxpayers will be eligible for the EITC and a total of 90,000 people will benefit from a 6.2 percent increase in the amount of their tax credit.
  
  
• ALTERNATIVE MINIMUM TAX (AMT): A provision included in the bill will exempt private activity bonds from the Alternative Minimum Tax (AMT). This provision is based on S. 138, legislation authored by Kerry. This will help increase the flow of capital into state and local bonds and will help create jobs and spur economic growth.
  
  
• INVEST IN SMALL BUSINESSES ACT: A bill sponsored by Senator Kerry to increase the 50 percent capital gains exclusion to 75 percent for investment in small businesses was included in the recovery package. This provision will help small public companies get access to additional investors to allow them to create jobs. This will especially be helpful for technology and energy efficiency companies like green technology and bio technology.
  
  
• RENEWABLE ENERGY AND CONSERVATION: Senator Kerry played a key role in securing energy tax provision increases including a long term extension of provisions that provide tax incentives for the production of renewable energy and tax credits for conservation. Senator Kerry fought to increase the amount spent on energy tax incentives.
  
  
• COLLEGE EDUCATION TAX CREDIT: The bill includes an education tax credit similar to the credit in Senator Kerry’s “College Opportunity Tax Credit Act of 2009,” which helps students and parents afford all four years of college. The provision would create a $2,500 higher education tax credit that is available for the first four years of college and a portion of the credit is refundable.
  
  
• INDUSTRIAL DEVELOPMENT BOND (IDB) PROGRAM: A provision introduced by Senators Kerry and Snowe (R – ME) to expand the Industrial Development Bond (IDB) program to high-technology and biotechnology uses was included in the recovery package. The small-issue IDB program has given state and local governments a low-cost source of financing to create and retain jobs in manufacturing plants.
  
  
• SMALL BUSINESS LENDING: A plan introduced by Senators Kerry and Schumer (D-N.Y.) to provide $636 million to eliminate fees for Small Business Administration loan programs. This will stimulate lending to small businesses and create jobs.

That's so awesome.