Washington, D.C. —- U.S. Rep. Bob Etheridge (D-Lillington), the only North Carolina member of the Ways and Means Committee, today issued the following reaction to President-elect Barack Obama’s address on the proposed economic recovery package:
“The economic conditions must be met with a response that is proportionate to the magnitude of the crisis we face. Congress must act immediately to pass economic recovery legislation that will create and save jobs for North Carolina families,” said Etheridge. “The legislation must be bold enough to produce the intended result of creating or saving three million jobs, but the funds should be carefully targeted to ensure taxpayer money isn’t wasted. I support including strong accountability measures to provide oversight to ensure the money is only spent to create jobs.”
On Wednesday Etheridge asked Obama to include his proposal to provide tax credits to fund local school construction in the economic recovery plan. Americans could be put to work on school construction projects as early as 30 days after the legislation becomes law, creating an immediate economic benefit.
The America’s Better Classrooms Act of 2007 would provide zero-interest school construction and modernization bonds to states and local communities. The federal government would provide tax credits to the bond holder for the interest normally paid on a bond. State and local governments would only have to pay back the principal, meaning funds used to pay bond interest would be freed for other education needs.
For each $1,000 of school bonds, states or local school districts would save as much as $500 in total payments. The bill would provide for $25 billion over the next two fiscal years for zero-interest school modernization bonds. North Carolina would receive $448 million under Etheridge’s proposal. School enrollment has increased almost 30 percent in North Carolina during the last decade.
Etheridge introduced similar legislation in his first term in Congress in 1997. In December Etheridge was appointed to be North Carolina’s only member of Congress to serve on the House Committee on Ways and Means in the 111th Congress, which has jurisdiction over Etheridge’s school construction tax credit proposal.