Jobs and the Economy
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"Good jobs help build strong families and a higher quality of life."
— Congressman Bart Gordon
Creating Jobs for Tennesseans
As the American economy has unraveled, Tennessee’s unemployment rate has doubled in the past year, and local governments and states across the country, including Tennessee, have faced staggering budget shortfalls were likely to result in mass layoffs and program cuts. In February, Congress took action to stem the tide of job loss and stabilize the economy by passing the American Reinvestment and Recovery Act (ARRA), which was signed into law on February 19, 2009. I supported the ARRA because I believed it was necessary to protect existing jobs, create new ones, and prevent the economic recession from becoming into a depression.
In total, the ARRA provided Tennessee with $4.3 billion, intended to be spent over two years on a number of programs and initiatives (summary of funding to state of Tennessee). This includes $570 million in money to repair and replace aging highway and bridges. Construction on several projects has already begun putting people back to work. More than $700 million went to the state’s fiscal stabilization fund to prevent drastic cuts in the state’s education budget that would have forced teachers to be laid off, and, in turn, increased class sizes. More than $1 billion was provided to TennCare, preventing the state from having to cut benefits or reduce coverage. The ARRA also provided funding to a number of federal competitive grant and loan programs that Middle Tennessee governmental and non-governmental organizations can apply for (6th District guidebook to federal funding opportunities).
Cutting Taxes for Working Families
The American Recovery and Reinvestment Act (ARRA) contained a number of tax incentives to assist individuals and families not only weather but also help to reverse the current economic downturn during the next two years (summary of tax incentives). While I supported each of these tax incentives, the “Making Work Pay” tax cut will benefit nearly all working Americans (press release). Starting this past April, each paycheck that working Americans receive will include a reduced federal withholding. For the next two years, the “Making Work Pay” tax credit will provide regular tax relief that could amount to an additional $800 for individuals and $1,600 for families in extra income.
Protecting Americans from Credit Card Companies
As the economy has worsened, credit card companies have increasingly been raising interest rates on cardholders, even those in good standing. Federal Reserve examined common business practices employed by credit card companies and determined many were "unfair," "deceptive," and "anti-competitive." I recently supported Credit Cardholders' Bill of Rights (press release), which was signed into law on May 22, 2009. The new law will prohibit card companies from raising interest rates without reason or advanced notice. It will prevent card companies from raising interest rates unless the promotional rate has expired, the cardholder has not paid the minimum balance 60 days after the due date, or the interest rate is tied to a variable index. If one of these requirements is met, card companies must notify the cardholder at least 45 days before the increased rate would take effect.
Preventing Another Recession by Protecting Future Homeowners
Economists widely agree that the underlying cause of the current economic downturn is the housing market, and particularly the subprime mortgage crisis. Between 2002 and 2004, when U.S. interest rates were extremely low, many home loans were provided to subprime borrowers – individuals with weakened credit histories and reduced repayment capacity. Many of these loans were made without the borrower providing adequate proof that they could handle repaying the loan. As countless subprime loan holders defaulted on their loans and lost their homes, the housing market crashed. On May 7, 2009, I supported the Mortgage Reform and Anti-Predatory Lending Act (press release), which passed the House on May 7, 2009. This legislation would bar originators of mortgages from steering consumers to loans they cannot reasonably be expected to repay. It also requires mortgage lenders to verify that the prospective homebuyer can repay the loan by reviewing the consumers' credit history, current income, expected future income, current obligations, and other financial measures.
>> Recent Economy Press:
- » 12.16.2009
U.S. House Passes Jobs Bill - » 12.01.2009
Gordon Announces Homebuyer Tax Credit Extension Takes Effect - » 11.18.2009
House Passes 3 Bills to Help Small Businesses Get Started and Reduce Costs - » 11.05.2009
Gordon Votes for Critical Assistance for Homebuyers, Businesses and Unemployed - » 11.05.2009
Gordon Votes to Expedite Credit Cardholders Protections - » 10.31.2009
Gordon Calls for Homebuyer Tax Credit Extension
