Economy

As a member of the House Budget Committee, I have been working on a bipartisan basis to pass responsible legislation to respond to worsening economic conditions. High energy prices, mounting national debt, the crisis in the nation’s housing market and rising unemployment levels led Congress to pass emergency legislation to stop the decline in the economy and put us back on a path of sustainable growth.

Economic Recovery Tax Rebates
In February of 2008 I voted with my colleagues in the House for The Recovery Rebates and Economic Stimulus for the American People Act. The bill was designed to be targeted, timely and temporary. It was targeted to families that need the money and could be expected to spend it quickly on necessities like food and clothing. It was timely to yield the economic benefits within the time frame of the anticipated problem. And it was temporary to prevent exacerbation of our fiscal imbalance.

The package provides real relief to North Carolina families who are struggling to make ends meet in a sluggish economy. I am pleased to note that the final compromise bill included tax rebates for those who received at least $3,000 in either Social Security or veterans’ benefits. This bipartisan stimulus package was aimed at middle- and low-income families, which economist say will help to reinvigorate the economy. The package also includes measures to allow small businesses to more quickly recover the cost of capital expenses and to write off more of the cost of property like equipment and computers.

Investing in Infrastructure
I am working in Congress to support a second economic recovery package when Congress returns from the August recess. This package will likely include funds for infrastructure, and I believe it is critical that neglected priorities like school construction are included. Investing in our infrastructure will put workers back on the job and improve our communities with better schools and roads.

Responding to the Housing Crisis
Decreasing home values and a lack of available credit have caused real pain in the housing market, and skyrocketing mortgages have led thousands of families to face foreclosure.

On July 23, 2008, the House of Representatives passed H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act of 2008. H.R. 3221 creates a voluntary initiative that allows families to stay in their homes while also strengthening the housing market. This plan would require lenders to reduce some of the existing mortgage, and would require borrowers to return portions of any future profits on the house to the government. Under H.R. 3221, only owner-occupied homes facing foreclosure can qualify for this mortgage assistance, and speculators, investors and second-homeowners are not eligible. This is a compromise that can keep people in their homes and improve surrounding communities.

In addition, the American Housing Rescue and Foreclosure bill includes a tax benefit of up to $7,500 for first-time homebuyers and an additional credit up to $1,000 on property taxes for existing homeowners who claim the standard deduction. These measures will help revive the housing market and get our sluggish economy moving in the right direction.

The bill will reform and modernize the Federal Housing Administration (FHA) and government-sponsored entities (GSEs) Fannie Mae and Freddie Mac. Modernizing the FHA will provide a safer alternative to risky subprime and exotic mortgage loans. Fannie Mae and Freddie Mac play a crucial role in today’s economy, and hold nearly half of all the mortgages across the country. In light of their financial woes, H.R. 3221 gives the Treasury Department authority to act as a backstop for these GSEs. This plan would allow the Treasury Department to offer credit and buy stock in the two companies, if necessary. This should boost confidence in the marketplace and reduce the likelihood of the need for further action. H.R. 3221 also provides for a new independent regulator for Fannie Mae and Freddie Mac