Working with a sense of urgency to move the American Recovery and Reinvestment Plan through Congress, U.S. Rep. Bill Pascrell, Jr. (D-NJ-08) and the House Ways and Means Committee today approved $275 billion in tax cuts to relieve families, reinvigorate business and restore the economy. 

Pascrell, a long time advocate for expanding child tax credits and the Earned Income Tax Credit (EITC) was particularly pleased with provisions that will benefit low-income families.  Just last week, Pascrell introduced the Strengthen the Earned Income Tax Credit (EITC) Act and the Child Tax Credit Growth Act. 

“I am pleased that this tax cut package prioritizes the families struggling hardest to make ends meet during the economic decline,” stated Pascrell.  “Expanding the EITC and opening the child tax credit to millions of new families will return fairness to the tax code and help low-income earners contribute more to America’s economic recovery.”

In addition to the EITC and child tax credit, Pascrell stressed the importance of using tax measures to reduce health care costs and cut down the number of uninsured Americans.  The American Recovery and Reinvestment Plan provides for investment in Health Information Technology (HIT) and an expansion of COBRA healthcare for those who have lost or will lose their jobs during this recession.  There will also be an extension of unemployment insurance benefits through 2009 with a $25 increase per week.    

“The incredible expense that Americans pay for healthcare ties directly into this recession,” stated Pascrell.  “Helping the unemployed pay for insurance and improving information technology at healthcare institutions will undoubtedly cut costs and create a new wave of affordable healthcare opportunities.”

Other tax provision approved today in the American Recovery and Reinvestment Plan will provide direct assistance for state and local governments to create jobs through infrastructure projects--including green school construction.  An emphasis will be placed on creating “recovery zones” in the most distressed communities. 

“As a former mayor, I know the challenges that arise when the national economy sinks,” stated Pascrell.  “Making tax credits bonds available to state and local governments will help our governors and mayors budget statewide priorities and community projects without jeopardizing essential services.  Better bonding opportunities will be particularly important in the areas most distressed by unemployment, foreclosures and poverty.”

“The American Recovery and Reinvestment Plan will empower American people, businesses and institutions to pry us out from the grips of recession.  From widespread tax credits for working families to incentives for new homebuyers and greener energy production, this legislation is a comprehensive, well-reasoned and responsible stimulus.” concluded Pascrell.      

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