House Passes Economic Security and Recovery Act of 2001 Legislation Promotes Economic Freedom Late this afternoon, Congress passed the "Economic Security and Recovery Act of 2001" (HR 3090). The bill is designed to offer immediate help to the economy by spurring opportunities in work and investment across the nation.
Americans and the American economy need a jolt to help individuals and small businesses that have been affected by the events of September 11th get back on their feet. But in order to accomplish those goals, people need access to revenue now and businesses need tools to stimulate economic growth. While I believe this legislation will be improved upon as the Senate and the House work out remaining differences, I am pleased that we've got a plan to secure economic stability and freedom for America.
The bill addresses the human impact of the attacks while offering incentives for America's businesses to create jobs. Several provisions of the bill include:
Rate Acceleration: Working families get immediate help by advancing the effective date of the 25% marginal rate cut from the tax bill passed earlier this year.
Payments for Individuals: People who received a partial rebate under the tax cut bill passed earlier this year will have their payments topped to the full $300 for individuals and $600 for couples. Those who were not eligible for tax relief under the bill passed in the spring, but did file a 2000 tax return will now get a payment of $300 for individuals or $600 for couples.
Unemployment and Health: Use of the existing social service block program will provide states with the ability and flexibility to supplement current unemployment and health benefits in states where the events of September 11th have caused a spike in the unemployed.
Allow additional expensing for small business: Small businesses will be able to write off an additional portion of their capitol investments -- $35,000 annually for two years.