Washington, DC--Congressman Eliot Engel (D-NY-17) voted in favor of the American Jobs and Closing Tax Loopholes Act (HR 4213). This measure is designed to create or save more than a million jobs, preserve benefits for those currently seeking employment and close loopholes in the system which helped lead to recent economic hardships. The legislation will restore credit to small businesses, extend tax incentives for American research and development, rebuild infrastructure, expand summer jobs for young people, and provide tax relief for middle class Americans.

“America is beginning to recover from the worst recession since the Great Depression. We cannot reverse the damage done over the last two years in a blink of an eye. Two months ago, partisan bickering hijacked the unemployment benefits for thousands of Americans who were trampled by the recession. Even though this bill had to be scaled back to mollify another round of grandstanding, it was vital to workers and their families to have a continuation of benefits assured,” said Rep. Engel. “In addition, this legislation keeps the recovery going by boosting small business’ resources and by keeping the more unscrupulous companies from repeating past behavior.”

If Congress did not act on this legislation, more than 95,000 New Yorkers would have lost their unemployment benefits at the end of June. Now, they will be able to continue their benefits until November. “Putting money in the hands of families who need it generates a demand for goods and services and helps fuel local economies. Moody’s chief economist Mark Zandi has stated that each dollar of unemployment benefits creates at least $1.63 in economic activity,” added Rep. Engel.

Among the provisions in the legislation to help businesses create and retain more jobs are:

• $500 million for small business lending. It restores credit flow by extending several Recovery Act provisions to make small business loans more affordable and available.
• $20 billion for innovation. The R&D Tax Credit is extended to provide incentive for good domestic job creation and technological discovery. These include credits for development, leading to thousands of construction jobs, and incentives to enable American businesses to compete globally, including the development of domestic alternative energy sources.
• $7.9 billion in America’s infrastructure. Extending Build America Bonds, which have helped finance more than $97 billion in infrastructure projects, and supported 1.7 million jobs nationwide. Recovery Zone Bonds would also be extended to help municipalities raise more than $25 billion for projects, and support more than 450,000 jobs nationwide.
• Tax cuts for middle class America – Includes property tax relief for up to 30 million homeowners nationwide, state and local sales tax deductions (affecting almost 400,000 New York households), tuition deductions (including over 350,000 New York households), and tax deductions for teachers for out-of-pocket classroom expenses (affecting over 280,000 New York households).
• $6 billion for youth summer jobs and job creation in high unemployment regions, including over $55 million to New York for summer jobs and the creation of 5,000 jobs in the state in regions that most need it.

“I am pleased the legislation keeps the financial industry under the microscope. It closes loopholes for executives’ income tax deductions, and eliminates tax provisions that encourage the outsourcing of American jobs. Confronting the economic issues of our country will not take a wave of a magic wand; it is a war which must be fought on many fronts. This legislation is a perfect example of the many steps needed to bring America back to where it belongs,” added the 11-term Congressman.

Also passed by the House today, was $23 billion to ensure seniors are able to keep their doctors. It prevents the cuts in Medicare physician payments which are scheduled to occur between now and December 31, 2011 – beginning with preventing the 21 percent cut in Medicare physician payments due to occur on June 1. It also:

• Continues access to doctors for Medicare beneficiaries and military families enrolled in TRICARE and military retirees in TRICARE for Life.
• Proves an update of 2.2 percent, effective on June 1, to ensure equitable pay for doctors under Medicare, TRICARE and TRICARE for Life. Another one percent increase would be set for January 1, 2011.

The American Jobs and Closing Tax Loopholes Act includes provisions supported by over 125 key organizations, unions and non-profits, including the U.S. Conference of Mayors, AARP, the American Farm Bureau, the National Restaurant Association, and businesses in the R&D Tax Credit Coalition.

The measure is now before the Senate for consideration.