[Congressional Record Volume 155, Number 2 (Wednesday, January 7, 2009)]
[Extensions of Remarks]
[Page E25]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  THE ECONOMIC RECOVERY THROUGH RESPONSIBLE HOMEOWNERSHIP ACT AND THE 
                  COMMONSENSE AUTO RECOVERY (CAR) ACT

                                 ______
                                 

                           HON. DAVID DREIER

                             of california

                    in the house of representatives

                        Tuesday, January 6, 2009

  Mr. DREIER. Madam Speaker, today I have introduced a trio of bills 
that focus on my top legislative priority for the coming year: getting 
our economy growing again. The centerpiece of this plan is the Fair and 
Simple Tax (FAST) Act. I introduced this legislation in the previous 
Congress, and it remains my long-term goal for economic revitalization. 
The FAST Act would dramatically simplify and reduce the tax burden on 
Americans. By creating a simple, one-page tax form that retains the 
child credit and all major deductions, like mortgage interest, it would 
make the annual tax filing nightmare far more manageable. It would also 
implement a host of additional tax reforms, such as reducing the tax on 
capital gains and corporate income, permanently extending the R&D 
credit, and creating new incentives for long-term financial planning.
  Implementing the FAST Act, however, is a long-term goal. As we work 
toward comprehensive reform, we must also pursue more immediate and 
targeted solutions to jumpstart our economy. That's why I introduced 
two additional pro-growth bills--aimed at the housing industry and the 
auto industry.
  The Economic Recovery Through Responsible Homeownership Act would 
create new tax incentives for responsible home purchases. Those who 
make a down payment of 5, 10 or 15 percent will get a tax credit of 
$2000, $5000 or $10,000 respectively. The housing crisis is at the root 
of our economic crisis. We need to encourage new purchases to stabilize 
the market, stop the free-fall in prices and restore the communities 
that have been plagued by foreclosures. But because irresponsible 
homeownership and predatory lending are partly to blame for the crisis 
in the first place, only a plan that rewards responsible action will 
succeed. This bill accomplishes both objectives.
  I have also introduced the Commonsense Auto Recovery (CAR) Act to 
provide a boost to our ailing auto industry, without resorting to 
another bailout. The CAR Act draws on the same principle as my housing 
bill and creates a tax credit for car purchases, equal to the amount of 
the sales tax on the purchase. Any individual or small business owner 
is eligible for the credit. This is an important component of my pro-
growth plan because the auto industry touches so many parts of our 
economy and workforce. The manufacturers, dealers, auto-parts makers 
and financers--many of whom are small businesses--are all a part of the 
broad-based auto industry that has weakened considerably in this 
economy. Thousands of jobs have already been lost, and thousands more 
are threatened. An effective and sustainable way to boost the industry 
is to encourage Americans to get back to their local car dealerships.
  Addressing the immediate challenges of the weak housing and auto 
industries will provide a quick boost to our economy. These are 
critical short-term steps that must be taken. In the long run, we must 
act on the need for fundamental reform of our tax code to reduce the 
burden on families and businesses and simplify the tax-filing process. 
We cannot restore our economy without both a short-term and long-term 
view. I believe that this package of tax bills is a comprehensive 
approach to getting our economy back on a path of growth and I look 
forward to working with my colleagues in a bipartisan way to achieve 
this goal.

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