A Weekly e-Newsletter from
Senator Johnny Isakson (R-GA)

February 8, 2008

Dear Friends,

This week the Senate passed the House version of the economic stimulus bill that is designed to boost the nation’s economy by issuing rebate checks to taxpayers and by providing employers greater incentives to invest and create jobs.  The legislation passed by the Senate, H.R.5140, also includes an amendment I supported to prevent illegal immigrants from obtaining a rebate check by requiring a valid Social Security number to claim the rebate and the per-child bonus.  Additionally, the amendment ensures that senior citizens, disabled veterans and widows of disabled veterans receive rebate checks by counting Social Security benefits and VA disability payments towards the $3,000 earned income test. 

This legislation is strategic and surgical. It puts money in the hands of the consumer, it advances both expensing and depreciation to small business and it partially addresses the mortgage industry problem by raising Fannie Mae, Freddie Mac and FHA loan limits.  Now, Congress must turn its focus to more long-term steps to stabilize the economy. This includes taking steps to boost the housing market, to reduce the federal deficit, and to revamp the federal budget process by sticking to spending priorities and pursuing fundamental changes to our tax system. 

Under H.R.5140, rebate checks would start at $300 for people who had an earned income of at least $3,000 during 2007. Depending on their incomes, single taxpayers could receive a maximum of $600 while married couples could receive a maximum of $1,200. The benefit would phase out for single people earning more than $75,000 a year and married couples earning more than $150,000. The amount of the tax rebate would increased by $300 for each child under the age of 17, with no limit on the number of children. For more information, click here.

Tax Credit Legislation for Homebuyers
Next, Congress must focus on taking long-term steps to stabilize the economy.  To this end, I introduced legislation offering a tax credit for homebuyers last week as a way to help the sagging housing market and to boost the economy. This was a strategy that was very successful during the mid-1970s and I believe it would help today. The legislation will include a $15,000 tax credit spread out over three tax years at $5,000 per year, for anyone purchasing a new home where the building permit was issued and construction began on or before September 1, 2007, a foreclosed home or a home where foreclosure is pending.  In addition, the buyer must occupy the home as his or her principle residence to qualify, and purchases of homes from investors or by investors are ineligible.  The purchase must be made between March 1, 2008, and February 29, 2009.  To date, my legislation has already attracted 19 co-sponsors.

Savannah Harbor Deepening Project
President Bush’s fiscal year 2009 federal budget was released on Monday, and Senator Chambliss, Representative Kingston and I were dismayed to see that funds to begin construction of the Savannah Harbor Expansion Project were not included in the budget.  The President’s budget calls for only $700,000 for preliminary engineering and design work for the project, but includes no funding for construction.  The Savannah Harbor Expansion Project was authorized in the Water Resources and Development Act of 1999 and will deepen the channel from 42 to 48 feet in order to accommodate larger cargo carriers and attract new business.

The Port of Savannah has become the fastest growing container port in the United States, and is now the second largest container port on the East Coast. Cargo volume has more than doubled in the past 10 years.  Savannah is now responsible for moving more than 16 percent of the East Coast’s overseas container cargo, and both the State of Georgia and private companies have invested hundreds of millions of dollars in land-side facilities to increase efficiency.  However, the ability of the port to continue to expand and accommodate the economic growth of business activity throughout the East Coast and Midwest will be dramatically weakened if the port cannot be expanded to accommodate the larger vessels that will shortly dominate ocean commerce.

We are only in the beginning of the budget process and I intend to work with Senator Chambliss and Congressman Kingston to ensure the Port of Savannah receives funding for this crucial project.  The Savannah Harbor Expansion Project is one of the most important projects to our entire state and critical to the state’s economic future. This project is essential to helping the Port of Savannah maintain its position as a gateway for business to Georgia.

Earmark Reform
Last week, Republican Leader Mitch McConnell appointed me to a Fiscal Reform Working Group to review the earmark process for appropriations bills. In addition, this group will recommend additional means for the Senate to bring greater transparency and fiscal responsibility to government spending, a position I have advocated through my own legislation in both the House and Senate.  The group will be chaired by Senator Dick Lugar (R-Ind.) and also includes Senators Thad Cochran (R-Miss.), Mike Crapo (R-Idaho) and Tom Coburn (R-Okla.).

Farm Bill
In December 2007, the Senate passed a Farm Bill that continues to provide a safety net for farmers, increases conservation programs, provides incentives for renewable energy production and establishes a permanent disaster program.  The Farm Bill is a win for rural America and for farmers in Georgia, where agriculture remains the number one industry in the state. Certainly much of the credit goes to Senator Chambliss for his strong work in crafting this legislation and for making sure that we continue to meet the needs of farmers in Georgia and the Southeast.  The House has passed its own version of a Farm Bill and the two chambers are now working to reconcile the differences between their two bills. My hope is that the two chambers will be able to reach an agreement quickly. 

What’s on Tap for Next Week?

The Senate will continue debate on the reauthorization of Foreign Intelligence Surveillance Act, also known as FISA, to bring it up to date with current communication technologies.  I support S.2248, the bipartisan legislation amending FISA that passed out of the Senate Select Committee on Intelligence almost unanimously. This legislation makes needed changes to FISA so the government’s counter-terrorism intelligence-gathering can continue uninterrupted.  The assistance of private telecommunications carriers is essential to carrying out the intelligence-gathering contemplated in FISA and those who assist the government in tracking terrorists should not be punished with lawsuits. 

Sincerely,
Johnny Isakson