Economy

• We need to put our fiscal house in order, by cutting spending and reducing the national deficit, but we must do so in smart ways that don’t harm our most critical investments in the future.
• That means protecting investments in education that give us a qualified workforce; investments in preventative health care that keep people out of emergency rooms and needing expensive procedures; and investments in infrastructure that create jobs and allow communities to grow.
• Small businesses drive the economy on Long Island and in communities across the nation, and Congresswoman McCarthy has put a high priority on helping them lead us out of the recent economic downturn.  That means helping them gain access to much-needed capital, as well as special tax breaks, that allow them to grow and create well-paying local jobs.
• Congresswoman McCarthy also believes our tax code needs to be reformed to make it more fair for everyone; that means reassessing loopholes and breaks when corporations don’t use them to create jobs and invest back into communities, and employing regional adjustments that account for people like Long Islanders, who have a higher than average tax burden and cost of living.

Financial Regulatory Reform

 On December 7, 2009, the House passed a sweeping financial regulatory reform bill, HR 4173 the “Wall Street Reform and Consumer Protection Act”.  The Congresswoman believes the reforms included in this legislation will help to restore our economy and put the US Financial system back on the road to recovery.

The comprehensive package contains provisions that will create a separate agency to monitor and enforce consumer protection regulations, allow regulators to place restrictions on firms, or even break apart financial firms who pose a risk large enough to bring down the entire financial system.  Additionally, the derivatives market will be put under federal regulation, and new powers will be given to the SEC to help better protect investors.  Prohibits unfair and predatory lending practices, and holds those accountable who engage in irresponsible lending.

Congresswoman McCarthy supported the final product of the House and Senate conference,  the “Dodd-Frank Wall Street Reform and Consumer Protection Act”, signed into law by President Obama on July 21, 2010.  The reforms contained in this Act represent a significant change in the American financial regulatory environment affecting all Federal financial regulatory agencies and affecting almost every aspect of the nation's financial services industry. 

Flood Insurance Reform

On April 27, 2010 Congresswoman McCarthy supported passage of “Flood Insurance Reform Priorities Act of 2010”.  This legislation would improve the National Flood Insurance Program (NFIP), the primary source flood insurance coverage for millions of American homes and businesses. The legislative reform package reauthorizes the program for 5 years.  The bill would allow for a mandatory purchase delay for those areas newly drawn into high risk flood zones because of updated flood maps, as well as allow for a 5 year phase in of flood insurance rates for newly mapped areas required to purchase flood insurance because of the updated flood maps.  Additionally, those required to purchase flood insurance would be able to do so in installment payments, an option currently not available.

Congresswoman McCarthy remains committed to ensuring that the flaws within the National Flood Insurance Program are addressed, and homeowners are eased of the burdens associated with the cost of flood insurance.

Small Business

Congresswoman McCarthy believes that small businesses are the engine that drives our economy. During the 111^th, the she supported passage of 16 various tax cuts benefitting small businesses, furthering economic growth and job creation.  On September 23^rd, the Congresswoman supported the passage of the “Small Business Jobs Act”, which would expand lending to small businesses through a small business lending fund as well increased access to SBA loans.  Additionally, the  bill offers many tax incentives to help small businesses grow- such as expensing capital investments, increased deduction for entrepreneurs looking to start a new venture, capital gains exclusion for small business investments . President Obama signed this bill into law on September 27, 2010.

Taxes

On December 2^, 2010 the House passed the “Middle Class Tax Relief Act of 2010” and President Obama signed it into law on December 17, 2010.   This made permanent the middle class tax cuts that were set to expire at the end of 2010, for individuals with an income level of $250,000 and couples at a level of $500,000.   This would make permanent the 2001/2003 income tax rates, marriage penalty relief rates capital gains and dividend rates and child tax credit.  As well, the Alternative Minimum Tax patch is extended through 2011. 

The Congresswoman believes that future tax reform legislation should more accurately reflect those living in high cost areas, and should be based on a cost of living index versus income levels.