On the Issues
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American Recovery and Reinvestment Act of 2009
Additional Resources and
Frequently Asked Questions
How does this legislation address the housing downturn?
The final bill improves the first time homebuyer tax credit in three major ways: it raises the maximum credit to $8,000 from $7,500; extends the credit until December 1, 2009 (the prior credit would have expired at the end of June 2009); and eliminates the taxpayer's obligation to repay the credit over 15 years. While these changes do not go as far as I would have liked, they represent a significant step forward; and I will continue to work to expand the homebuyer tax credit in other legislation.
How does this legislation help working families?
ARRA provides household tax relief by instituting a tax break of $800 for working families ($400 for individuals) through a reduction in the amount of income tax that is withheld from each paycheck or through claiming a credit on their tax returns on wages up to $150,000 ($75,000 for individuals). It also decreases the income threshold for the refundable portion of the child tax credit, temporarily suspends the taxability of unemployment benefits, and increases in the income thresholds subject to the alternative minimum tax (AMT) for one more year.
When will the tax increases for those making greater than $250,000 go into effect?
ARRA did not include tax increases on taxpayers earning more than $250,000 a year. President Obama's long-term tax proposals were included in his 2010 budget proposal. Only Congress has the power to pass legislation related to taxes or spending, and I will be carefully examining the President's ideas on the federal budget to discern the best course with regard to his proposals.
How will this package help small businesses?
Under ARRA, the Small Business Administration (SBA) has the authority to make $375 million in temporary fee reductions, establish a deferred-payment loan program to provide up to $35,000 to assist viable small businesses in making payments on existing loans, and use the 504 Loan Program Certified Development Company to refinance SBA loans for fixed assets. For more information on eligible small businesses, please go to http://www.sba.gov/.
Besides construction, what other jobs will this create?
This legislation is designed to create or save jobs in the following categories: green jobs in renewable energy and energy efficiency, health information technology, medical research, K-12 education, first responders like firefighters and police, state and local government, and jobs in small businesses.
How is the federal government going to keep track of spending under this legislation to prevent waste and fraud?
President Obama has sent up the website http://www.recovery.gov to provide transparency and oversight of outlays made with ARRA funds. Governor Rell has also set up a website at www.recovery.ct.gov where constituents can track how the state is allocating funds from ARRA. In addition to that, in my capacity as Chairman of the Senate Homeland Security and Government Affairs Committee, I plan on conducting a series of oversight hearings to ensure that ARRA funding is being spent wisely. I held my first hearing on March 5, 2009. You may view this hearing by clicking here.
How will I know when funding becomes available?
Each federal agency involved has set up a recovery centric website to disseminate information to taxpayers regarding their progress. You can access the most up to date information by checking the sites listed on the US Government recovery website. According to the Office of Management and Budget, Notifications of Funding Availability will be available through the regular reporting site, http://www.grants.gov. Connecticut has also created a web site to track stimulus funds coming to the state which can be seen by clicking here. Another website, FinancialStability.Gov, has recently been launched to provide the American people with information about the Obama Administration's efforts to stabilize our financial system.
What energy efficiency provisions are included in this legislation, and how can I find out if I qualify for any energy efficiency tax credits?
ARRA presents an opportunity to promote the development of clean, renewable energy sources that will simultaneously reduce our dependence on foreign oil and other non-renewable fuels, curb our nation's greenhouse gas emissions, create jobs, and support American technological innovation. In addition, provisions in the package encourage the growth of green jobs, both as a way to address the current economic crisis and to meet our need for skilled workers who can produce and operate green technologies. To learn more, click here. To find out about federal tax credits for energy efficiency, please click here.
What impact will this legislation have in addressing our current health care problems?
The health investments contained in ARRA include emergency appropriations for biomedical research, public health, and other health-related programs within the U.S. Department of Health and Human Services (HHS), as well as new authorizing language to promote health information technology (HIT) and to establish a federal interagency advisory panel to coordinate comparative effectiveness research. In addition, P.L. 111-5 contains premium subsidies for COBRA continuation coverage for unemployed workers; Medicare payments for teaching hospitals, hospice providers, and long-term care hospitals; state fiscal relief, and a number of Medicaid provisions. To learn more, click here.
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