WASHINGTON – First District Congressman Paul Ryan early this morning voted in favor of an economic stimulus bill that, if enacted, would help revitalize our economy, create new jobs, and provide additional assistance to displaced workers.  This legislation, the "Economic Security and Worker Assistance Act of 2001," passed the House of Representatives by a vote of 224-193.

"The House already voted once this fall on legislation to boost the economy and create jobs, now with this new compromise bill we've acted a second time to generate economic growth and deliver immediate assistance to workers who have lost their jobs," Ryan said. "The House is behind this bill, the President's behind it, and in the Senate there's a bipartisan majority in support of this bill.  Still the Senate leadership says it won't let the bill come up for a vote. For the sake of American workers, the Senate has a responsibility to take up this vital legislation."

"Recession has put Wisconsin's workers and businesses through a lot this year, and they are still struggling," Ryan said. "We need to get our economy growing again and get people back to work. This bill contains key measures that would help put us on that path to recovery and more jobs.  At the same time, the legislation would also help those who have been suffering because they lost their jobs in this recession."
 
Provisions to Foster Job Growth and Spark Economic Recovery

Tax provisions in this legislation to spur economic growth and help businesses create new jobs include:

• Thirty percent expensing of investment in most forms of depreciable property during a three-year period. This will create jobs and promote business investment.

• Allow additional expensing for small businesses.  Small businesses will be able to write off even more of their capital investments - $35,000 annually for two years.  That money can be directly invested in paying salaries and keeping businesses afloat through tough economic times.

• Extension of the net operating loss carryback period from the current two years to five years. The five-year carryback period would be allowed for losses generated in 2001-2003.  This provision will help stabilize businesses that have been losing money by allowing them to write off based on losses they have suffered.  With this measure, they can deduct against their income tax liability over the past five years, putting cash back into businesses to help them stabilize or expand.

• Reform of the Alternative Minimum Tax (AMT) for corporations and individuals, providing relief from aspects of the AMT that penalize investments and currently punish ailing businesses.  Under current law, the AMT forces some businesses with no profits to pay taxes.  The tax actually ends up raising taxes on struggling employers during recessions.  This legislation will minimize the impact of the AMT on businesses facing economic difficulties.  This measure does not affect the treatment of AMT credits, unlike the prior stimulus bill.

• Acceleration of tax relief from last spring's new tax law for individuals, reducing the current 27.5 percent tax rate to 25 percent effective January 1, 2002.  This cuts taxes for middle-class families struggling through this recession.

This legislation offers substantial assistance for workers dislocated as a result of our country's recession. These provisions include:

• Providing up to 13 weeks (beyond the regular 26 weeks) of extended unemployment benefits available in every state through 2002 for workers who lost jobs after March 15, 2001 (the approximate start of the recession) and who exhaust their regular benefits.

• Transferring $9 billion in surplus federal unemployment funds to states to provide immediate and flexible help to states for unemployment needs. For Wisconsin, this would mean an immediate influx of $196 million in transferred federal funds.

• Real help for displaced workers struggling with health care costs, in the form of an advanced refundable tax credit of up to 60 percent of the cost of health insurance for one year.

• Unlike alternative proposals, the plan included in the House-passed legislation gives dislocated workers choice: they can choose to stay in their employer plan or purchase coverage in the individual market.
 
• Whereas the COBRA-only alternative does not cover dislocated workers from small businesses or who did not have health insurance at their old job, the House plan is available to anyone involuntarily unemployed and covered by unemployment insurance between March 15, 2001, and January 1, 2004 who is not otherwise covered by health insurance.