U.S. REP. GABRIELLE GIFFORDS, BANKERS, ECONOMISTS AND BUSINESS LEADERS REACT TO ECONOMIC STIMULUS PACKAGE

U.S. Rep. Gabrielle Giffords today hosted a roundtable discussion with local business and economic professionals on the economic stimulus package announced this morning by leaders of the House of Representatives and President Bush.

“Lay-offs, foreclosures, health care costs, and gas prices are all on the rise,” Giffords said at the outset of the 90-minute discussion, held at the downtown offices of the Tucson Metropolitan Chamber of Commerce. “Strengthening Southern Arizona’s economy is one of my highest priorities in Congress, which is why I want to hear from the people I represent.”

The discussion, convened by Giffords, began with the congresswoman outlining the main points of the compromise economic proposal, which includes tax rebates for taxpayers and tax incentives for businesses. Giffords then asked the participants – 14 of the most influential business and economic leaders in Pima County – to explain how the national economic downturn is impacting the lives of Southern Arizonans, and to suggest possible solutions.

“I believe we need to stimulate the economy and it needs to happen quickly, but the changes should be temporary,” said Dr. Paul Portney, dean of the University of Arizona’s Eller College of Management. “These seem to be the right kinds of things to provide quick and temporary stimulus.”

Valerie Rauluk, CEO of Venture Catalyst, said it was important for the stimulus package to be “timely and targeted.” She suggested focusing on the renewable energy industry, which is “on the verge of a major explosion of investment in Arizona.”

Paul Parisi, vice president of governmental affairs at the chamber, said the stimulus package at this point “looks good,” noting that businesses need incentives to invest.

Giffords, a former small business owner, said that job creation was among her top concerns. “We cannot afford to depend on tourism or new construction to sustain us when an economic downturn occurs,” she said. “I believe that Green Jobs are part of the answer and Southern Arizona is in a prime position to take the lead. Such innovation could provide long term solutions to our economic needs while also promoting much-needed renewable energy.”

The other participants in the discussion were Bonnie Allin, president and CEO of Tucson Airport Authority; Chris Monson, president of Rocking K and owner of the Aberdeen Group; Maricella Solis de Kester, president and CEO of the Tucson Hispanic Chamber of Commerce; Dave Naugle, administrator of corporate public affairs at Southwest Gas Corp.; Anne Mehochko, vice president of public policy at the Tucson Association of Realtors; James Tsighis, associate broker at Realty Executives; and George Favela, director of community affairs at Qwest.

Details regarding the economic stimulus proposal announced today are below.

• Total package: House leaders and the White House on Thursday reached a tentative agreement on an economic stimulus package of roughly $150 billion that will benefit 34.6 million Americans.
• Individual Tax Rebates: Tax rebates would be paid to workers receiving a paycheck, even those who did not earn enough income to pay taxes last year. Workers could receive from $300 to $1,200, depending on their income. However payments are capped and would not go to individuals earning over $75,000 or couples earning over $150,000.
• Additional Child Tax Credits: Families with children would receive an additional $300 per child.
• Business Tax Incentives: The proposal includes tax incentives for businesses to encourage spending. Those might include a one-year 50% depreciation incentive to encourage businesses to make capital investments this year. The plan would also double the Section 179 expensing for small businesses and raise the limit from $125,000 to 250,000 to increase the amount of equipment they could buy.
• Increases GSE Loan Caps: The loan limit U.S. mortgage funders Fannie Mae and Freddie Mac (Government-sponsored Enterprises) can finance will be raised to $625,000 from the current $417,000.