Economic Recovery Plan Six actions for a stronger economy Page

Economic Recovery Plan Address the Immediate Financial Crisis I voted against the Paulson plan, not against taking action to solve the problem. Congress must exercise oversight to ensure transparency, including scrutinizing the individuals involved and assets purchased. Divert a portion of the $700 billion Wall Street bailout to the FDIC and Federal Reserve to shore up traditional banking system and money markets. Page 1

I voted against the Paulson plan, not against taking action to solve the problem.

Congress must exercise oversight to ensure transparency, including scrutinizing the individuals involved and assets purchased.

Divert a portion of the $700 billion Wall Street bailout to the FDIC and Federal Reserve to shore up traditional banking system and money markets.

As a result of the 2001 and 2003 tax cuts, 111 million taxpayers saw their taxes decline by an average of $1,877. A family of four earning $40,000 received tax relief of $2,010. Over 5 million individuals and families saw their income tax liabilities completely eliminated. 44 million families with children received an average tax cut of $2,493. Economic Recovery Plan Make Tax Cuts Permanent Page 2

As a result of the 2001 and 2003 tax cuts, 111 million taxpayers saw their taxes decline by an average of $1,877.

A family of four earning $40,000 received tax relief of $2,010.

Over 5 million individuals and families saw their income tax liabilities completely eliminated.

44 million families with children received an average tax cut of $2,493.

The root of the financial crisis is the housing market. Credit-worthy home owners who are currently struggling but are likely to remain in their homes should be able to deduct a portion of their principle. Interest payments are already deductable. Instead of rewriting mortgages, government can provide immediate relief to help struggling homeowners. Economic Recovery Plan Stabilize Housing Market Page 3

The root of the financial crisis is the housing market.

Credit-worthy home owners who are currently struggling but are likely to remain in their homes should be able to deduct a portion of their principle.

Interest payments are already deductable.

Instead of rewriting mortgages, government can provide immediate relief to help struggling homeowners.

Far too many people have gotten into far too much debt. Savings must be further incentivized. Congress should immediately consider relaxing limits on Roth IRA contributions. Temporarily accelerating the increases to current limits will encourage savings as well as provide much-needed capital to get the economy moving again. Economic Recovery Plan Incentivize Savings Page 4

Far too many people have gotten into far too much debt. Savings must be further incentivized.

Congress should immediately consider relaxing limits on Roth IRA contributions.

Temporarily accelerating the increases to current limits will encourage savings as well as provide much-needed capital to get the economy moving again.

Congress has enacted a tax benefit for companies that create jobs in the United States, but it is being slowly phased in over time. Congress should accelerate the phase-in for the domestic manufacturing deductions and create jobs here at home. Small businesses have the most to gain from an accelerated phase-in. Economic Recovery Plan Increase Jobs Page 5

Congress has enacted a tax benefit for companies that create jobs in the United States, but it is being slowly phased in over time.

Congress should accelerate the phase-in for the domestic manufacturing deductions and create jobs here at home.

Small businesses have the most to gain from an accelerated phase-in.

To promote investment and job creation, Congress should temporarily eliminate the capital gains rate and allow a repatriation of foreign earnings. Currently, companies that have accumulated significant funds in offshore accounts are reluctant to bring these funds back to the U.S. because of the enormous tax consequences. We should provide a window to bring those funds back onshore to invest in business and job growth. Economic Recovery Plan Promote Investment Page 6

To promote investment and job creation, Congress should temporarily eliminate the capital gains rate and allow a repatriation of foreign earnings.

Currently, companies that have accumulated significant funds in offshore accounts are reluctant to bring these funds back to the U.S. because of the enormous tax consequences. We should provide a window to bring those funds back onshore to invest in business and job growth.