Last Train to Clarksville

Economic Stimulus Act of 2008 Reply

I recently wrote Marsha Blackburn to let her know my concerns and this is how she replied.

Dear Mrs. Agnew:

What a pleasure to hear from you. Thank you for contacting me to share your support of the National Association of Realtors (NAR) four-point legislative plan as part of a potential second stimulus package. Hearing from constituents on issues of concern is important to me and our office as we work to represent our district.

As you may know, the Economic Stimulus Act of 2008, passed the House of Representatives by a vote of 385-35 on January 29, 2008 and provided rebate checks to taxpayers, between $300 and $600, based on their 2007 Adjusted Gross Income level and filing status. As the stimulus package passed the House I was promised that its swift enactment would sufficiently respond to economic indicators suggesting an increased risk of a recession in early 2008. Prior to the vote, Federal Reserve Chairman Ben Bernanke testified that action was needed to stimulate the economy through targeted government spending and tax incentives. Unfortunately, the benefits from the initial stimulus package quickly wore off, the credit crisis worsened, and Congress proposed a $700 billion bail out package for failing financial institutions at the urging of Treasury Secretary Henry Paulson that has also failed to stabilize the financial markets.

As you mentioned, the National Association of Realtors has proposed a four-point plan focusing on stimulating the housing market. The plan would extend a non-repayable $7,500 tax credit to all home buyers of a primary residence; make permanent the loan limit that was established in the Economic Stimulus Act of 2008 (Public Law 110-185); use a portion of the recent $700 billion bailout for price stabilization for housing; and finally, permanently prohibit banks from entering into real estate brokerage and management.

Like you, I believe the housing market is critical to improving and strengthening the American economy. I fully support transparent and fiscally responsible methods for promoting homeownership and stability for small business owners and families across Tennessee. As Congress continues to debate the most appropriate methods for stabilizing the economy you can be sure I am considering the Realtor proposal, and will only take action in the best interest of Tennessee taxpayers.

Please know that I appreciate both your interest and time in contacting us on this issue. As the discussion moves forward on this and other issues, please feel free to visit our website at www.house.gov/blackburn where you can sign-up for our email update, learn about constituent services, and find the latest legislative news and critical information that affects and concerns the people of Tennessee.

Sincerely,

Marsha Blackburn

Member of Congress

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