February 26, 2008
Giffords touts stimulus package
Tuesday, February 26, 2008
San Pedro Valley News-Sun
By Thelma Grimes
With so many economic indicators pointing to a recession, Congresswoman Gabrielle Giffords, D-Ariz., said the U.S. Congress had to act quickly in passing the tax stimulus package recently signed into law by President George Bush.
In a town hall meeting last Wednesday in east Tucson, the District 8 Congresswoman explained to a packed audience that the government will be sending rebates worth $117 billion to 130 million families throughout the U.S. In Arizona, 2.5 million families are expected to receive an average of $800, Giffords said.
“We, as the federal government, found a way to put money back in the hands of the taxpayers and stimulate the economy in order to avoid a recession,” Giffords said. “We needed it to be a one-time thing in order to boost the economy without having any long-term commitments.”
Giffords said the rebate, which is expected to stimulate the economy, will benefit low-income families, veterans, retirees living on social security and the middle class.
To assure that all those deserving the rebate check are paid, Giffords explained that the amount of the rebate would be based on the adjusted gross income reported on their 2007 tax return. Giffords said a married couple with two children making $80,000 a year would receive $1,800.
For seniors and disabled citizens, the measure provides recovery rebates to anyone who receives at least $3,000 in Social Security income, self-employment income or veterans’ disability payments. These Americans are expected to get at least $300 per single, $600 per couple and another $300 per child.
The rebates will also go to middle-income Americans. Giffords said the wealthiest taxpayers are not eligible for a rebate. The tax-relief package begins to phase out above incomes of $75,000 for single residents and at $150,000 for married couples.
Giffords said she voted in favor of providing some tax relief to Americans because of all the indicators pointing to a downturn in the both the national and Arizona economies.
At the national level, Giffords said the inflation rate has hit a 17-year high at 4.1 percent, the housing crisis has spread into other financial markets and consumer confidence is now at a five-year low.
In Arizona, Giffords said concerns are even more elevated. Arizona is one of four states generating more than a 30 percent foreclosure rate for sub-prime home loans. Job growth has dropped from 6 percent to 1.3 percent, energy costs continue to increase, health care costs are up 33 percent and the unemployment rate has now reached a two-year high.
Nationwide, Giffords said 500,000 Americans are looking for work right now.
“Consumer confidence is down,” Giffords said. “The housing market is falling rapidly. When you talk to economists, it makes sense to spend the money right now to keep the economy rolling. The backbone of our country is small businesses, and people are really struggling right now.”
Not all residents were excited by the stimulus package. One resident questioned Giffords on who taxpayers will have to pay for the so-called relief in years to come.
Giffords agreed that times are tough, noting that the national debt is at a $9-trillion high, that the war in Iraq is costing $12 billion a month.
Even with that, Giffords said the stimulus package is needed to keep the economy rolling and provide some assistance to taxpayers. The Congresswoman explained that the hope is families will spend their rebate checks, therefore boosting a slowing economy.
Another resident questioned Giffords on what Congress is doing to find a long-term solution instead of a quick fix such as the stimulus package.
Giffords agreed that more needs to be done to keep jobs in the U.S., but said her main concern is the public education system.
Giffords said not enough students are graduating from high school each year and more needs to be done in the way of math and science. Providing an example, Giffords said last year the U.S. graduated 60,000 engineers.
While that number may seem high to some, she said China graduated 600,000.
While protecting the economy in the long term is important, Giffords said for now she is traveling around Southern Arizona to educate residents on the current stimulus package.
Visit www.giffords.house.gov/contact
In Benson, tax assistance is available at the Benson Community Center at 705 W. Union St., on Thursdays between noon and 4 p.m. Assistance will be available on Feb. 28, March 13 and 27 and April 10.
Click here to read the article on the San Pedro Valley News-Sun website
