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Senior Citizen Politics
Senate Should Vote Today to Add Senior Citizens to
Stimulus Plan
Majority Leader Reid says amendment to House bill
adds 21.5 million seniors
 Feb. 6, 2007 – The Senate moved as expected
yesterday to take up the economic stimulus plan approved by the House –
HR 5140 – and to begin reshaping it to meet the recommendations of the
Senate Finance Committee, which voted to add over 20 million senior
citizens to the list of those who will receive government checks.
Majority Leader Harry Reid offered the key amendments and a vote is
expected today.
(Read
the amendment below news report.)
Speaking on the floor of the Senate, Reid said,
“Republican Senators have suggested that sending stimulus checks to 21.5
million senior citizens – many on fixed incomes – is a ‘pet project.’
That sending stimulus checks to 250,000 disabled veterans is a ‘pet
project.’ That providing assistance to help struggling Americans pay
their heating bills through the Low Income Home Energy Assistance
Program is a ‘pet project.’
“Democrats – and I believe many Republicans – could
not disagree more strongly. The stimulus package sent to us by the
House of Representatives last week was a good start. But it is our job
to take a bill from the House and work to make it stronger.
Sen. Reid also said Republicans are trying to
mischaracterize the Senate plan.
“Yesterday and today, we have heard some
remarkable statements from our Republican colleagues. We heard the
distinguished Minority Leader, Senator McConnell, come to the floor with
a statement that is simply, objectively untrue. This morning, Senator
McConnell said, ‘If Americans are wondering why their checks aren’t in
the mail, they can find it in last week’s news clips.’
“Republicans know perfectly well that no matter how
this debate turns out, no one’s checks are being held up. Any stimulus
plan – whether the House version, the Senate Finance Committee version,
or a combination of the two – would calculate rebate checks on 2007
income tax returns.
“We all know that taxes are not due until April
15th. That is more than two months from today. So, let’s not confuse
or concern the American people with claims that aren’t based on facts.
“Perhaps my Republican colleagues did not
understand the timeframe of the stimulus package when he made that
inaccurate statement. If so, I hope he will clarify it.”
Based on the House plan, the Senate plan makes
several improvements, Reid said.
Following are the differences he highlighted:
● The Finance Committee package sends stimulus
checks to roughly 21.5 million senior citizens would get nothing at all
from the House bill. Give them the money and they will spend it.
● This Finance Committee package sends checks to
250,000 disabled veterans who were left out of the House plan. Give
them the money and they will spend it.
● The Finance Committee package extends
unemployment benefits for those who have lost their jobs in this
economy. The House bill doesn’t do that – and many economists tell us
that it is the single most effective way to stimulate the economy.
● The Finance Committee package is
business-friendly. It gives small businesses a greater ability to
immediately write-off purchases of machinery and equipment.
● And it helps larger businesses with “bonus”
depreciation -- or an extended carry back period for their past losses
to recoup cash for future investments. Give them this tax break and
they will spend it.
● The Finance Committee package addresses the
housing crisis by including $10 billion in mortgage revenue bonds that
can be used by the states to refinance subprime mortgages.
● And the Finance Committee package includes an
extension of energy efficiency and renewable energy incentives to create
jobs, expand the clean energy industry, save consumers money on their
energy bills, and help begin to stem the tide of global warming.
He added, “I will also offer an amendment that we
can and should all support: First, the House-passed bill’s language on
housing. This amendment will increase the conforming loan limits for
Fannie Mae and Freddie Mac as well as the loan limits for FHA-backed
mortgages, which will allow more homeowners to refinance and will reduce
mortgage interest rates in many parts of the country.
“Second, $1 billion to help low-income Americans
heat their homes through the Low Income Home Energy Assistance Program –
known as LIHEAP. LIHEAP provides some relief to prevent people from
having to choose between food, medicine, or heat – but we must do more.
“So let’s leave the overheated rhetoric aside and
get to work on passing this plan.”
Key Senate Amendment Adding Senior Citizens to
Stimulus Plan
SEC. 101. ECONOMIC RECOVERY STIMULUS CREDIT
AND REBATE.
(a) In General.--Section 6428 of the Internal
Revenue Code of 1986 is amended to read as follows:
``SEC. 6428. ECONOMIC STIMULUS CREDIT FOR
2008.
``(a) In General.--In the case of an eligible
individual who is a taxpayer who meets the requirements of subsection
(b), there shall be allowed as a credit against the tax imposed by
subtitle A for the first taxable year beginning in 2008 an amount equal
to the sum of--
``(1) $500 ($1,000 in the case of a joint
return), plus
``(2) the product of $300 multiplied by the
number of qualifying children (within the meaning of section 24(c)) of
the taxpayer.
``(b) Requirements.--An eligible individual
meets the requirements of this subsection if the taxpayer--
``(1) has qualifying income of at least
$3,000, or
``(2) has--
``(A) net income tax liability which is
greater than zero, and
``(B) gross income which is greater than the
sum of the basic standard deduction plus the exemption amount (twice the
exemption amount in the case of a joint return).
``(c) Treatment of Credit.--The credit
allowed by subsection (a) shall be treated as allowed by subpart C of
part IV of subchapter A of chapter 1.
``(d) Limitation Based on Adjusted Gross
Income.--The amount of the credit allowed by subsection (a) (determined
without regard to this subsection and subsection (f)) shall be reduced
(but not below zero) by 5 percent of so much of the taxpayer's adjusted
gross income as exceeds $150,000 ($300,000 in the case of a joint
return).
``(e) Definitions.--For purposes of this
section--
``(1) QUALIFYING
INCOME.--For purposes of paragraph (1), the term `qualifying income'
means--
``(A) earned income,
``(B) social
security benefits (within the meaning of section 86(d)), and
``(C) any compensation or pension received
under chapter 11 or chapter 15 of title 38, United States Code.
``(2) NET INCOME TAX LIABILITY.--The term
`net income tax liability' means the excess of--
``(A) the sum of the taxpayer's regular tax
liability (within the meaning of section 26(b)) and the tax imposed by
section 55 for the taxable year, over
``(B) the credits allowed by part IV (other
than section 24 and subpart C thereof) of subchapter A of chapter 1.
``(3) ELIGIBLE INDIVIDUAL.--The term
`eligible individual' means any individual other than--
``(A) any nonresident alien individual,
``(B) any individual with respect to whom a
deduction under section 151 is allowable to another taxpayer for a
taxable year beginning in the calendar year in which the individual's
taxable year begins,
``(C) an estate or trust, and
``(D) any individual who is a Senator or
Representative in, or Delegate or Resident Commissioner to, Congress.
``(4) EARNED INCOME.--The term `earned
income' has the meaning set forth in section 32(c)(2), except that--
``(A) subclause (II) of subparagraph (B)(vi)
thereof shall be applied by substituting `January 1, 2009' for `January
1, 2008', and
``(B) such term shall not include net
earnings from self-employment which are not taken into account in
computing taxable income.
``(5) BASIC STANDARD DEDUCTION; EXEMPTION
AMOUNT.--The terms `basic standard deduction' and `exemption amount'
shall have the same respective meanings as when used in section 6012(a).
``(f) Coordination With Advance Refunds of
Credit.--
``(1) IN GENERAL.--The amount of credit which
would (but for this paragraph) be allowable under this section shall be
reduced (but not below zero) by the aggregate refunds and credits made
or allowed to the taxpayer under subsection (g). Any failure to so
reduce the credit shall be treated as arising out of a mathematical or
clerical error and assessed according to section 6213(b)(1).
``(2) JOINT RETURNS.--In the case of a refund
or credit made or allowed under subsection (g) with respect to a joint
return, half of such refund or credit shall be treated as having been
made or allowed to each individual filing such return.
``(g) Advance Refunds and Credits.--
``(1) IN GENERAL.--Each individual who was an
eligible individual who was a taxpayer who met the requirements of
subsection (b) for such individual's first taxable year beginning in
2007 shall be treated as having made a payment against the tax imposed
by chapter 1 for such first taxable year in an amount equal to the
advance refund amount for such taxable year.
``(2) ADVANCE REFUND AMOUNT.--For purposes of
paragraph (1), the advance refund amount is the amount that would have
been allowed as a credit under this section for such first taxable year
if this section (other than subsection (f) and this subsection) had
applied to such taxable year.
``(3) TIMING OF PAYMENTS.--The Secretary
shall, subject to the provisions of this title, refund or credit any
overpayment attributable to this section as rapidly as possible. No
refund or credit shall be made or allowed under this subsection after
December 31, 2008.
``(4) NO INTEREST.--No interest shall be
allowed on any overpayment attributable to this section.
``(h) Identification Number Requirement.--
``(1) IN GENERAL.--No credit shall be allowed
under subsection (a) to an eligible individual who does not include on
the return of tax for the taxable year--
``(A) such individual's valid identification
number,
``(B) in the case of a joint return, the
valid identification number of such individual's spouse, and
``(C) in the case of any qualifying child
taken into account under subsection (a)(2), the valid identification
number of such qualifying child.
``(2) VALID IDENTIFICATION NUMBER.--For
purposes of paragraph (1), the term `valid identification number' means
a social security number issued to an individual by the Social Security
Administration. Such term shall not include a TIN issued by the Internal
Revenue Service.
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