U.S. tax rebates approved - checks to be cut this spring

NEWS RELEASES

CONGRESSMAN BART STUPAK 1ST CONGRESSIONAL DISTRICT OF MICHIGAN

************************* Stupak: Latest stimulus package a victory for seniors, working families

Includes relief for more than 130 million families, including 20 million seniors

WASHINGTON – The U.S. House of Representatives and Senate passed a revised economic stimulus package today that will provide tax rebate checks this spring to more than 130 million American families, including 20 million seniors and 250,000 disabled veterans not covered under the original package.

U.S. Congressman Bart Stupak (D-Menominee) – who has been advocating for seniors to be included in economic stimulus package since it was announced two weeks ago – voted in support of the legislation.

“This bipartisan bill is a victory for northern Michigan’s seniors,” Stupak said. “Seniors are facing the same rising costs for energy, health care and other goods that every American family is. I am pleased the revised bill recognizes this fact. Now we can truly say we are providing immediate relief to all of those who need it the most.”

The $150 billion package passed by Congress on Thursday will likely be sent to the President for his signature before the weekend.

It includes tax rebates to be mailed this spring of up to $600 for individuals and up to $1,200 for married couples.

More than 130 million families would receive a check, including 20 million seniors living on Social Security and 250,000 disabled veterans.

The bill doubles the amount small businesses can write off on their taxes for new investments and provides immediate tax relief for all businesses to invest in new plants and equipment.

It also includes mortgage lending reforms.

“This is a good first step,” Stupak said. “And now I look forward to beginning work on a second stimulus package aimed at addressing the fundamental flaws in our economy such as rising energy and health care costs. If we’re serious about addressing our economic problems in the long-term, we need to take a hard look at these issues that are putting a financial strain on every American family and business.”

To protect consumers from skyrocketing energy costs, Stupak authored The Federal Price Gouging Prevention Act, which passed the House in May 2007.

The Senate has passed its own price gouging proposal, and now the two chambers must reconcile the differences.

Stupak is also pushing for legislation to lower energy costs for all consumers and businesses.

He has introduced The Prevent Unfair Manipulation of Prices (PUMP) Act to regulate all energy trades, preventing the speculation by hedge fund managers and investors that is artificially inflating energy prices.

Economists estimate the bill could lower the cost of a barrel of oil by as much as $30.

“As oil prices continue to climb, families in northern Michigan and across the country are being hit hard by rising energy costs,” Stupak said. “This is something that would benefit everyone and have ripple effects through the economy, lowering the cost of not just energy, but also food, transportation and manufactured goods.”

Stupak also believes a second, more comprehensive stimulus package should include extended unemployment and food stamp benefits.

The nonpartisan Congressional Budget Office has found that historically the two programs have been the most effective tools for economic stimulus.

“We need to make American workers and their families a priority,” Stupak said. “Extending these benefits for the workers who have lost their jobs as a result of ill-conceived economic policies and un-enforced trade agreements will help workers recover from layoffs while continuing to support their families.”

************************* House passes Stupak amendment to provide loan relief for administrators in low-income schools

Provision would benefit 241 schools in Northern Michigan, 2,325 statewide

WASHINGTON – The U.S. House of Representatives today adopted an amendment authored by Congressman Bart Stupak (D-Menominee) to provide federal student loan relief to principals and administrators in low-income schools.

The amendment to the College Opportunity and Affordability Act (H.R. 4137) would apply to any federal loan borrower who has been employed as a full-time school superintendent, principal or other administrator for five consecutive years in an eligible low-income school, including 241 schools in northern Michigan.

“Like teachers, qualified school administrators and principals are crucial to creating an effective learning environment,” Stupak said. “But unlike teachers, school administrators and principals are not given access to the same loan forgiveness programs for their service in low-income schools.”

The U.S. Bureau of Labor Statistics (BLS) projects the demand for primary and secondary school principals to increase by 12 percent between 2006 and 2016.

At the same time, teachers are becoming less inclined to seek administrative positions, many believing the modest pay increase is not enough to compensate for the greater responsibilities.

BLS also notes that school administrators will remain in greater demand in rural and urban areas, where pay is generally lower than in the suburbs.

In the most recent study by Michigan State University’s Education Policy Center, 60 percent of Michigan superintendents said their district faces a shortage of qualified principal candidates.

“Low-income schools – which often offer lower salaries and more difficult professional challenges – have difficulty recruiting qualified principals and administrators,” Stupak said. “Under current law, if a teacher is eligible for loan forgiveness, but is promoted to an administrative position in that same school, they lose access to the loan forgiveness program. My amendment would address this problem, helping low-income schools recruit and retain the talented school administrators they need.”

For a school to be considered low income 30 percent or more of the students must come from low-income households.

In the 2007-2008 school year 2,325 primary and secondary schools in Michigan qualify as low-income, with 241 of those located in Stupak’s northern Michigan congressional district.

“We need to make sure low-income schools can compete for the best young talent,” Stupak said. “As families are increasingly turning to student loans to finance a college education, loan repayment programs will be an even more valuable incentive.”

Stupak’s amendment has been endorsed by the National Education Association, the American Association of School Administrators and the National Association of Secondary School Principals.

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