Economy

The current Administration's mismanagement of the economy and irresponsible tax cuts have laid the groundwork for a rising national debt, higher interest rates, and sluggish employment and economic growth. Greater fiscal discipline would dramatically boost investor confidence and free up federal dollars to fund domestic priorities rather than pay interest on the national debt. Lowey believes that responsible fiscal management and clear priorities can make possible tax cuts for hard-working families and incentives for businesses to create jobs in the context of a balanced budget.

 

To recover from the negative impact of the Administration’s economic policies, Lowey supported the Economic Stimulus Act of 2008, passed by the Democratic Congress and signed by the President in February 2008 to provide financial relief to hard-working individuals and families. For more information on tax rebates provided by this bill click here.

Representative Lowey has consistently supported fiscally responsible policies that grow the economy without busting the budget. Lowey opposed the irresponsible 2001 tax cut, which is expected to cost $600 billion from 2003-2012 and leave inadequate funding for homeland security, health care, and education. In addition to supporting the landmark Budget Enforcement Act of 1990, Lowey played a key role in the House decision to halve the deficit in 1993. Fighting to ensure the nation's long-term fiscal health, Lowey worked to pass a seven-year balanced budget as a member of the Democratic Budget Task Force.

The Administration and Republican Congress’ fiscal mismanagement of the budget in recent years has produced record deficits that threaten long-term economic growth and cripple the government’s ability to finance vital social services, such as Medicare, education and homeland security. Since 2001, the federal government has added $2.8 trillion to the national debt, a stark contrast to the projected ten-year budget surplus of $5.6 trillion inherited by President Bush when he took office.

Lowey supported the pay-as-you-go principle, enacted in the House in January 2007, to require that spending increases or tax cuts be paid for to help eliminate our long-term budget deficit.

Congresswoman Nita Lowey supports critical legislation to provide tax relief to working families. She has introduced legislation to eliminate the estate tax for individuals with estates of up to $3 million ($6 million for couples). Under this legislation, 99.6% of estate-holders wouldn’t pay an estate tax.

Lowey is also working hard to fix the unfair Alternative Minimum Tax (AMT), which is threatening the middle class. The 18^th district in New York has the highest percentage of population impacted by the AMT in the nation, and in the lower Hudson Valley, the tax could affect more than 100,000 taxpayers in the coming years if it is not fixed. That’s why Lowey is an original cosponsor of legislation to permanently fix the AMT by raising exemption limits so they no longer catch middle-class families and then indexing those exemptions to inflation.

In 2007, with Lowey’s support, $7.1 billion in tax cuts over five years were enacted for small businesses, including an extension of the “expensing” benefit allowing the deduction of outlays for machines and equipment and the Work Opportunity Tax Credit (WOTC) for employers hiring specific groups such as veterans and high-risk youth.

Lowey also voted to extend a law providing for tax deductions for teaching materials purchased out-of-pocket by elementary and high school teachers, and to extend the Child Tax Credit which gives families a $1,000 credit for each child.

Lowey has also supported tax relief for U.S. soldiers by:

• Relaxing the capital gains rules on home sales;
• Exempting the death gratuity as well as aid under the Homeowners Assistance Program from federal income taxes; 
• Deducting unreimbursed overnight travel, meals, and lodging expenses of National Guard and Reserve members; and
• Providing tax incentives for small business to continue paying activated members of the National Guard and Reserves.

Earned Income Tax Credit (EITC) applicants currently must submit extensive documentation demonstrating proof of parenthood before EITC eligibility can be determined. Lowey believes it's wrong to insist on onerous filing requirements for low-income taxpayers, while corporate tax abuses have received scant attention, and she supports removing these burdensome application requirements.

She has also fought to ensure that Non-English speaking taxpayers have access to translated versions of essential tax documents.

Economic Stimulus

In February, Congress passed the Economic Stimulus Act of 2008, which created a one-time payment up to $600 for individuals or up to $1,200 for joint filers that the IRS has begun to send out to more than 130 million American households. Even though the April 15th income tax return filing deadline has passed, there is still time for retirees, disabled veterans and others who normally do not file a tax return to submit a 2007 form to receive an economic stimulus payment. Eligible individuals must file a tax return form for 2007 before the October 15th deadline showing at least $3,000 in qualifying income from Social Security benefits, Veterans Affairs benefits, Railroad Retirement benefits and/or earned income.

If you filed before April 15th, below is the schedule of when to expect your paper check in the mail:

If the last two digits of your SSN are: Your payment will be mailed no later than (and received a few days after):
00 through 09 May 16
10 through 18 May 23
19 through 25 May 30
26 through 38 June 6
39 through 51 June 13
52 through 63 June 20
64 through 75 June 27
76 through 87 July 4
88 through 99 July 11

If you filed before April 15th and had direct deposit, you should have received your payment in mid-May 2008.

If you filed after April 15th, it will take a minimum of six weeks after you file your return to get your stimulus payment.

Beware Scam Artists Are Calling Taxpayers about the Stimulus Payments

If someone claiming to be from the IRS calls or e-mails you about the payments and asks for a Social Security, bank account or credit card number, it is likely a scam. Scammers are trying to get your personal and financial information so they can empty bank accounts, run up charges on credit cards and more. The IRS only uses your 1040 form to calculate and distribute your payment.

If you have any questions about your payment, please call the toll-free IRS Rebate Hotline at 1-866-234-2942.