NEWS RELEASE
FOR IMMEDIATE RELEASE
Tuesday January 29, 2008

Shadegg opposes tax rebates, economic stimulus plan

Rep. John Shadegg marked himself as one of the most out-of-touch members of Congress, as he voted today against a short-term relief bill that would give the economy a shot in the arm.

H.R. 5140, Recovery Rebates and Economic Stimulus for the American People Act, offered tax rebates for families, businesses and homeowners caught in the mortgage crunch.

“Families need this help – Democrats and Republicans from all over the country agreed on that,” said Emily Bittner, spokeswoman for the Arizona Democratic Party. “But John Shadegg wants to keep that money in Washington even as gas prices go up, health care costs go up, foreclosures go up – and the economy goes down.”

Shadegg was one of only 35 members of the House of Representatives to vote against the package. The bill was forged in a bipartisan effort.

“Not only has John Shadegg voted again and again to deny health care to needy children, now he’s opposed to giving families a tax rebate to jump start the economy,” Bittner said. “He’s completely blind to the needs of Arizonans, and this country.”

Background

The bipartisan compromise includes:

• Tax rebates of $300 for individual and $600 for couples who jointly file with who pay little or no income tax, but have earned income of at least $3,000.
• A 50 percent bonus depreciation for businesses that purchase and use equipment in 2008, as well as an increase in the amount that small businesses can expense in the year that equipment is placed in service.
• A temporary increase in the size of mortgages Fannie Mae and Freddie Mac can purchase, as well as an increase in the size of mortgages the Federal Housing Authority (FHA) can insure.
• Tax rebates of up to $600 for individual taxpayers with adjusted gross income of $75,000 or $1,200 for couples who jointly file and have a combined adjusted gross income of $150,000.

If enacted, Arizonans would receive an estimated $2.1 billion in rebates statewide, with an average rebate of $913 per household. Rebate checks are expected as early as mid-May.