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WASHINGTON, DC -- Congressman Henry E. Brown, Jr. (R-SC) voted in favor of improved legislation that will prevent the financial crisis that Main Street is watching today on TV from playing out in their neighborhoods and workplaces. Following the passage of the Senate amended Emergency Economic Stabilization Act of 2008 (H.R. 1474), Congressman Brown made the following statement:
“We are already seeing the shift of the financial crisis that is gripping Wall Street shift to folks who live in Conway, Aynor, and Summerville. I have heard from constituents who have seen their retirement savings, something they worked for decades to build, go away in the blink of an eye. My office has taken calls from investment managers; folks who help the average Joe on the street grow a little nest egg for retirement. These experts are pleading with us to do something because they are seeing their client’s money disappear into thin air. Businesses, small and large, are finding it harder to access funds to meet their payroll and keep their businesses running.
Our economy shed almost 160,000 jobs last month, and economic observers are ready to push the button and announce we are in a recession. Make no mistake about it, that recession will be long and deep, impacting every American family and company. The legislation before us is by no means perfect. I am proud to have worked with my Republican colleagues to make significant improvements to the bill, and I would have loved to have had the opportunity to vote for more.”
Today’s legislation also includes $110 billion in tax cuts to help our struggling economy. Billions of these dollars in tax cuts are focused on expanding the use of renewable energy and growing jobs in this emerging area of our economy. Hundreds of millions more of these dollars will make it easier for Americans to reduce energy costs in their homes and businesses. Another provision would give teachers tax forgiveness for purchasing supplies for their classrooms. Most importantly, the legislation prevents 21 million Americans, including 61,133 residents of the First District, from paying higher taxes due to the expansion of the Alternative Minimum Tax (AMT). Brown and other House Republicans have been working all year to enact AMT relief and renewable energy tax incentives that do not raise taxes. The tax cuts, changes in depreciation rates and increased deductions included in this legislation are valuable for families, workers, employers and students struggling to get by during these times of economic uncertainty.
In a statement to the House on the bill, Brown discussed some of the pain his constituents are feeling. A perfect example of the challenge faced by First District companies is the story of A.O. Hardee and Son, a local construction firm. According to Benjy Hardee, the company has been forced to lay off 30% of its workforce because housing developers, on the verge of bankruptcy and owing millions of dollars to builders, cannot access credit to pay them. In addition, a local student loan provider has been impacted by credit crunch all year, and claims that it has gotten much worse in the past 2 weeks. Many in the industry are two weeks away from running out of money, and the large banks are not in a position to provide loans. These are very real consequences of our economic situation, and are among the predominant reasons Congressman Brown supported H.R. 1474.
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Attached is a list of additional examples of how the credit crunch is directly affecting residents of the First District of South Carolina.
Also attached is a list of how the tax cut package is positively impacting residents of the First District.
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