OBAMA'S ECONOMIC RECOVERY PACKAGE AND NEW JERSEY

I received this information from the office of U.S. Senator Robert Menendez. There has been a lot of confusion regarding what President Obama's economic stimulus plan will mean for New Jersey. This press release from the Senator will hopefully begin to provide some clarity. I hope you find this informative.



FOR IMMEDIATE RELEASE
February 12, 2009 CONTACTS:Menendez Press Office 202-224-4744

ECONOMIC RECOVERY PACKAGE IMPACT ON NJ: SEN. MENENDEZ SAYS PACKAGE MEANS 100,000 JOBS FOR NJ
**NJ-specific numbers included below**


WASHINGTON – As Congress prepares to take final votes to send the economic recovery package to President Obama’s desk, U.S. Senator Robert Menendez is hailing estimates of what it will bring to New Jersey families in jobs, tax relief, provisions for laid-off workers and education.

“First and foremost, this package is going to help start creating and saving jobs in our state,” said Senator Menendez. “Jobs are the most essential piece of any family’s economic situation, and that’s the main focus of this package. We will also help bring economic change that affects the lives of New Jerseyans through relief on their taxes, education for their children and assistance to sustain those who have been laid off.

“I am proud to have been able to contribute measures to this package that I believe will improve the economic situation of New Jersey families. These include the protection of 1.7 million taxpayers in our state from an unexpected tax hike that would have come with the Alternative Minimum Tax. They include assisting cities and towns with energy efficiency and helping families plug into solar energy to create green jobs, lower energy expenses and remove the shackles of foreign oil. And they include increasing education assistance for schoolchildren left homeless by the foreclosure crisis, the silent victims of this recession.

“I am looking forward to casting a vote in favor of this jobs and economic recovery package in the new few days so it can get to work putting New Jerseyans to work.”

Below is an estimate of the economic impact of the recovery package on New Jersey:

· Creating or saving 100,000 jobs over the next two years. Jobs created will be in a range of industries from clean energy to health care, with over 90% in the private sector. [Source: White House Estimate based on Romer and Bernstein, “The Job Impact of the American Recovery and Reinvestment Plan.” January 9, 2009.]

· Providing a making work pay tax cut of up to $800 for 3,150,000 workers and their families. The plan will make a down payment on the President’s Making Work Pay tax cut for 95% of workers and their families, designed to pay out immediately into workers’ paychecks. [Source: White House Estimate based on IRS Statistics of Income]

· Protecting 1,742,000 New Jerseyans from an unexpected tax raise of up to $5,600. Senator Menendez offered and successfully included a one-year patch for the Alternative Minimum Tax in the recovery plan. The AMT was created years ago to prevent high-income taxpayers from avoiding paying higher taxes, but it was never indexed to inflation and now threatens to hit millions of middle class tax payers. The Menendez provision saves these taxpayers from paying higher taxes. [Source: Democratic Policy Committee estimate: http://dpcvotes.senate.gov/dpcpub/ileaf/fs-111-1-14/states/nj.pdf]

· Making 77,000 families eligible for a new American Opportunity Tax Credit to make college affordable. By creating a new $2,500 partially refundable tax credit for four years of college, this plan will give 3.8 million families nationwide – and 77,000 families in New Jersey – new assistance to put college within their reach. [Source: Center on Budget and Policy Priorities analysis of U.S. Census data]

· Offering an additional $100 per month in unemployment insurance benefits to 731,000 workers in New Jersey who have lost their jobs in this recession, and providing extended unemployment benefits to an additional 148,000 laid-off workers. [Source: National Employment Law Project]

· Providing funding sufficient to modernize at least 205 schools in New Jersey so our children have the labs, classrooms and libraries they need to compete in the 21st century economy. [Source: White House Estimate]

· Bringing the State of New Jersey $2.22 billion for Medicaid reimbursement. This is $86 million higher than the amount New Jersey would have received in the compromise Senate version of the package. Senator Menendez led the fight against amendments in the Senate that would have further lowered New Jersey’s allocation of these funds.