Kaptur pleased NW Ohio will benefit from stimulusWritten by Duane Ramsey | | firstname.lastname@example.org
Northwest Ohio residents will benefit from the economic stimulus package, according to Congresswoman Marcy Kaptur’s office.
The largest single component of the stimulus bill is a total of $288 billion in immediate and sustained tax relief that will benefit 95 percent of taxpaying American people and small businesses, according to Kaptur. President Barack Obama signed the American Recovery and Reinvestment Act into law Feb. 17.
“I voted for the stimulus bill because our nation faces its most severe economic crisis since the Great Depression,” Kaptur said. “The economy is clearly in recession. Unemployment has reached the highest leveling in many years and is now approaching double digits in the 9th District. Our economy is threatened as never before in our lifetimes.”
Working taxpayers will benefit from lower withholding tax with an average of $13 per week, $60 per month or $676 in 2009. The withholding tax savings would be reduced to $8 per person each week in 2010.
Middle class workers will benefit from the “Making Work Pay Tax Credit” by receiving $400 per worker and $800 per couple in 2009. An estimated 4.5 million Americans will receive tax relief through this benefit, according to State Sen. Teresa Fedor.
The bill also called for a one-time payment of $250 for most senior citizens and retirees.
The tax breaks were designed to infuse the economy with much-needed spending power, according to supporters of the economic stimulus package.
But the tax breaks are not enough to make people go out and spend money on goods and services, according to Congressman Bob Latta, who voted against the federal economic stimulus.
“The president believes government can solve this problem by borrowing and spending more money, while the country’s debt continues to grow,” Latta said.
Other tax relief in the package include an extension of the child tax credit for 16 million families, expanded earned income credit for working families and a new $2,500 credit for families of college students.
An increase in the first-time homebuyer’s tax credit to $8,000 is hoped to stimulate housing sales.
Kaptur said tax deduction for state and local taxes paid on the purchase of new cars, light trucks and sport utility vehicles is particularly important for the economy of Northern Ohio.
The Toledo/Lucas County CareNet program could benefit from $400 million allocated to the Social Service Block Grant. CareNet was created by former Toledo Mayor Jack Ford to help needy citizens of Toledo.
Additional tax relief provisions will benefit small businesses. These include the extension of the bonus depreciation of new plants and equipment, enhanced small-business expensing and a 100 percent increase in the amount that small businesses can write off for capital investments and purchases of new equipment in 2009.
It also includes a five-year carryback of net operating losses and cuts in capital gains tax for qualifying investors.
The $25 weekly increase in compensation for some 9 million unemployed workers will provide an additional $90,000 into the Northwest Ohio area per month, according to Fedor.
Lucas County is expected to receive an estimated $6 million from federal stimulus money and the State of Ohio’s Workforce Investment Area. About $1.3 million would be spent on training adults, $2.4 on youth and $2.6 on dislocated workers.
It is estimated the stimulus package could create or save 133,000 jobs in Ohio during the next two years with the 9th District gaining 7,300 jobs, according to Fedor.
“Small businesses remain the engine of job creation. I wish the bill would have focused more on short-term job creation,” Kaptur said.
Toledo is expected to receive an estimated $11.76 million in the distribution of highway infrastructure funds to large urban areas, according to Fedor.
“I am encouraged by the commitment to infrastructure projects such as roads, bridges, green energy projects and high-speed rail,” Kaptur said.
The $8 billion investment in high-speed rail will stimulate development of the Chicago-Toledo-Sandusky-Cleveland corridor that could create hundreds or thousands of new jobs and eventually make the region more competitive, she said.
Kaptur was instrumental in having this corridor designated as one of 13 major corridors in the nation for high-speed rail development.
Kaptur is hosting a briefing for law enforcement and first responders on March 2 at Maumee Bay State Park to discuss what is in the stimulus package for them through the Department of Justice.