Today, I joined a strong bipartisan majority of my congressional colleagues in voting for the Emergency Economic Stabilization Act. This legislation is far from perfect, but the economic crisis confronting our nation demands congressional action.
Many parts of this legislation added by the Senate are ridiculous - to me and my constituents. But sitting on the sidelines and risking major economic collapse would be irresponsible. Retirement accounts, jobs, the safety of our money in local banks, and the survival of small businesses in Southern Arizona and across the country are on the line.
Let me be clear: I have no interest in bailing out the greedy corporate executives who created this mess. But inaction at this time would be negligent.
This is not the same bill that was rejected by a bipartisan majority in the House on Monday. It is a better bill because it helps taxpayers - not just Wall Street. It is not a silver bullet but I believe it is necessary to prevent further harm to our economy.
Over the past two weeks, thousands of my constituents in Arizona's 8th Congressional District have contacted me about our economy. Families, business leaders, seniors, students - they all are very concerned. One local bank executive told me he was forced to stop lending money for new mortgages because of the uncertainty over having the funds to cover loans. Several business owners told me they cannot get credit necessary to maintain cash flow and meet payroll. Older citizens are terrified watching their hard-earned savings or retirement accounts disappear before their eyes with the potential of sinking them into poverty. This is a disturbing situation and the consequences of inaction would directly affect all of us.
The Emergency Economic Stabilization Act not only addresses these concerns but also promotes growth-oriented policies with clear tax benefits for Southern Arizonans and all Americans.
The most important among these for Southern Arizona's economic development is an eight-year extension of the residential and commercial solar tax credits. Investing in renewable sources of energy like solar is one of the best ways to stimulate our economy, create new jobs and reduce our dependence on foreign oil. I have long advocated extending the credits and I am very pleased that today's bill includes these provisions.
This bill also recognizes that the economic stability of our nation also depends on a strong middle-class. It cuts taxes for hard-working Southern Arizonans by protecting more than 42,000 middle-class families in my district from having to pay as much as $4,000 in higher taxes as a result of the Alternative Minimum Tax this year. In addition, the bill increases the number of families who can qualify for the child tax credit - more than 53,000 of my constituents claimed this credit in 2005 - and extends tax deductions for state and local sales and property taxes as well. More than 127,000 CD-08 taxpayers itemized their taxes and took advantage of these kinds of deductions to offset their expenses and lower their tax bills in 2005.
I also am pleased with the temporary increases in coverage for individuals' bank accounts to $250,000 by the Federal Deposit Insurance Corporation and National Credit Union Share Insurance Fund. For the last 28 years, the FDIC has insured individuals' deposits up to $100,000. Increasing this cap will restore much-needed confidence in our troubled financial institutions.
The bill's mental health parity provision will allow those in need to seek mental health services. Mental health problems are one of the leading reasons for days missed in the workplace, so this provision will help hard working Arizonans seek necessary treatment so they can continue contributing to our economy.
Congress has more work to do to fix this problem and the underlying regulatory problems that contributed to this mess. I will fight for strict oversight of how the rescue plan is administered by the Treasury Department so that taxpayers will ultimately get a return on their money. This is the first of many votes that we will cast to restore fiscal discipline and regulation to the financial markets.
Comments from individuals and organizations praising Congresswoman Gabrielle Giffords' vote for the Emergency Economic Stabilization Act:
- Michael Hannley, President and CEO of Bank of Tucson: "People are concerned about the security of their bank deposits. This increase in FDIC coverage will reassure the public that their money is safe and secure. It will also be extremely helpful to small businesses whose cash flow needs are higher than the current FDIC coverage. This is a great improvement to the financial rescue legislation."
- Dan Danner, executive vice president of the National Federation of Independent Businesses: "NFIB appreciates Rep. Giffords' support for the Emergency Economic Stabilization Act, bipartisan legislation that will restore stability and confidence in our financial system. It's very difficult for most small business men and women to fathom how we got to where we are today. When a small business makes bad decisions, they risk going out of business. We have little sympathy for those that got us in this economic mess, and believe that they should be held accountable. However, small business owners recognize that their ability to grow their business depends upon stability and liquidity in the financial markets. They know that credit and functioning financial markets are important to them and to their customers, suppliers and vendors. NFIB commends Rep. Giffords for her vote on the Emergency Economic Stabilization Act. Her support for the Economic Stabilization Act shows her clear support for small business in Arizona's Eighth Congressional District."
- Carolyn Kemmeries, a retired educator in Tucson: "I have seen my retirement fund go down 14 percent in the past week. My house has lost 25 percent of its value. Many Americans like me are suffering financially. Congresswoman Giffords' vote in favor of the financial rescue bill is the right decision for retirees like me and for middle class Americans across the country. It will help restore consumer confidence and will get our financial system back on track. I am grateful for her decision and I know that I speak for thousand of other retirees in this community."
- Scott Earl, President/CEO of the Arizona Credit Union League: "An increase to $250,000 for credit unions and banks deposit insurance helps to ensure confidence that the average American's deposits our safe. We praise Congresswoman Gabrielle Giffords for her vote on this bill and for reaching out to get input from her community and local businesses."
- Larry Gibbons, Sales Manager, Arizona Wholesale Supply Company: "The Financial Rescue Package that passed the House today will strengthen the global markets and the U.S. Economy. It will provide the necessary liquidity to the market place that we need now. Specifically, it will increase liquidity and consumer confidence right here in Tucson Arizona. Because of this legislation small businesses in Tucson that Arizona Wholesale works with will once again be able to receive the credit they need to stay in business. By voting for this bill Congresswoman Giffords is looking out for the best interest of the Tucson economy. She should be commended for her vote - she did the right thing."
- Tom Alston, Manager, Business & Policy Development, American Solar Electric: "If the investment tax credit, as currently written, did not pass we expected to see residential sales drop 50 percent and commercial sales by over 90 percent. With its passage we now expect to see exponential growth. We have scores of potential customers who will benefit from this bill."
- George N. Villec, President, GeoInnovation, LLC: "As a small business owner involved in the installation of solar electric systems for homes and businesses, the uncertainty of the investment tax credit has created supply shortages of photovoltaic panels, driven up PV panel costs, and caused us to put planned hiring on hold. Now that the tax credit will be extended for 8 years, we will immediately start hiring installers and support staff creating green collar jobs at wages between $15 and $25 per hour. Additionally, removing the residential cap of $2,000 will drive payback periods for photovoltaic systems below 10 years and ignite significant demand in this sector. Our business plan calls for 100 percent growth in the both the residential and commercial sectors for 2009."
- Philip J. Dion, Vice President of Legal and Environmental Services for Tucson Electric Power and its parent company, UniSource Energy: "The extension of these investment tax credits would provide critical support for the development of renewable energy resources in Arizona. TEP is actively seeking new sources of renewable energy at a cost that won't overly burden our customers. This task would become all but impossible without an extension of the tax credits that have played such a large role in nurturing our growing green energy infrastructure."