March 03, 2005

Crapo: Tough Fight To Move Economic Package

Senate narrowly passes legislation to stimulate economy, create jobs

Washington, DC â?? After a marathon day of voting in the U.S. Senate, Idaho Senator Mike Crapo joined with the majority to support the Jobs and Economic Growth Reconciliation Tax Act of 2003. The measure narrowly passed the Senate early Friday morning on a vote of 51 to 49, and now must be sent to a conference committee for reconciliation with the House-passed version of the bill.â??After a tough fight, the Senate ultimately did the right thing,â?? Crapo said following the vote, which was taken late Thursday night. â??It took more than 30 roll call votes, but the Senate was able to cross a major hurdle in creating a more vibrant environment for economic growth. This measure will stimulate the economy and create jobs in the short term as well as make more favorable conditions long-term economic growth.  There are still significant differences remaining between the House- and Senate-passed versions, so a lot of tough work remains to be done in conference. The goal is to provide the strongest framework possible to give the economy a much-needed shot in the arm and to focus on job growth and creation. This legislation does that, and I am pleased that we have been able to move forward on this important issue. We still have significant work to do on paying down the federal debt, and we continue to move ahead on a fiscal plan to bring it in line.â??Crapo co-sponsored several amendments or provisions in the bill that will provide economic incentives including one that will, in the short term, completely abolish the double taxation of dividends; legislation that would provide a tax credit for broadband expansion into rural areas; and a measure that would allow companies to reinvest foreign-owned income back in the U.S. for one year at lower tax rates.According to an analysis by the Heritage Foundation, under the Presidentâ??s growth package, Idaho may gain as many as 2,400 jobs in 2004 if all provisions in the Presidentâ??s proposal are enacted. Over the course of the legislation, Idaho would average job creation of approximately 1,600 per year. The new jobs are expected to come through the small business growth that is forecast to occur through the reduction of tax rates and the increased expensing opportunities for equipment and software. This provision will allow small businesses to keep more of their revenues to reinvest in the business.# # #