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The State of the Economy - Squeezing Hard-Working American Families

The New Direction Congress is committed to providing timely, targeted and temporary relief for American families and businesses. Yesterday, the House passed the Recovery Rebates and Economic Stimulus for the American People Act with an overwhelming bipartisan majority (385-35), to inject confidence and consumer demand, promote economic growth, and create jobs here at home. It will:

  • Put hundreds of dollars into the hands of 117 million American households - who will spend it immediately to reinvigorate the economy through a recovery rebate;

  • Build on the child tax credit by offering a one-time rebate of $300 per child;

  • Expand financing opportunities for Americans in danger of losing their homes because of the mortgage crisis;

  • Promote small business investment in equipment; and,

  • Help create more than 500,000 jobs before the end of the year.

 
Congress is committed to completing action quickly so that we can get money into the hands of families who will spend it to spur American job creation and economic growth.

Below are some examples of the latest economic indicators, followed by state-by-state tables of the amount of the average household 'recovery rebate' check, gas prices, and foreclosure rates. 
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  • The U.S. economy 'virtually stalled' at the end of 2007 as the Gross Domestic Product increased a mere 0.6 percent in the final quarter. [Washington Post, 1/30/08]

  • Nationwide, the foreclosure rate jumped 75 percent - with 2.2 million filings - in 2007. [Boston Globe, 1/30/08]

  • In 2007, the housing market slumped, with the single largest one-year drop in the rate of homeownership on record, a 26 percent drop in new home sales - for the worst sales year on record, and a 25 percent drop in new home construction - the largest decrease in 27 years. [CNN/Money.com, 1/29/08; Baltimore Sun, 1/29/08; AP, 1/17/08]

  • The cost of gas continues to squeeze hardworking Americans at the pump - with the average national price for a gallon of regular at $2.98.[Energy Information Administration, 1/28/08]

  • Consumer confidence fell sharply in January 'on worries over deteriorating business conditions and a weakening job market.' [New York Times, 1/30/08]

  • In 46 states and Washington, D.C. the unemployment rate increased in December 2007. Only two states saw their unemployment rate decrease. [Bureau of Labor Statistics, 1/18/08]

  • Last year, the price for a dozen eggs increased by 29 percent and whole milk jumped by more than 13 percent. [AP, 1/17/08]                                                                                                                        

RECOVERY REBATES & ECONOMIC STIMULUS FOR THE AMERICAN PEOPLE ACT
Average Household Tax Rebate by State

STATE

Number of Households Receiving Rebates

Average Household Tax Rebate

Total Tax Rebates by State, Estimated

Alabama

1,800,000

$889

$1.6 billion

Alaska

300,000

$1,000

$300 million

Arizona

2,300,000

$913

$2.1 billion

Arkansas

1,000,000

$1,000

$1 billion

California

13,300,000

$887

$11.8 billion

Colorado

1,900,000

$895

$1.7 billion

Connecticut

1,400,000

$929

$1.3 billion

Delaware

400,000

$750

$300 million

District of Columbia

200,000

$1,000

$200 million

Florida

7,400,000

$878

$6.5 billion

Georgia

3,500,000

$914

$3.2 billion

Hawaii

500,000

$1,000

$500 million

Idaho

600,000

$833

$500 million

Illinois

5,000,000

$900

$4.5 billion

Indiana

2,600,000

$923

$2.4 billion

Iowa

1,200,000

$917

$1.1 billion

Kansas

1,100,000

$909

$1 billion

Kentucky

1,600,000

$938

$1.5 billion

Louisiana

1,600,000

$938

$1.5 billion

Maine

500,000

$1,000

$500 million

Maryland

2,300,000

$870

$2 billion

Massachusetts

2,600,000

$885

$2.3 billion

Michigan

3,900,000

$923

$3.6 billion

Minnesota

2,100,000

$952

$2 billion

Mississippi

1,100,000

$909

$1 billion

Missouri

2,300,000

$913

$2.1 billion

Montana

400,000

$1,000

$400 million

Nebraska

700,000

$1,000

$700 million

Nevada

1,100,000

$818

$900 million

New Hampshire

600,000

$833

$500 million

New Jersey

3,400,000

$912

$3.1 billion

New Mexico

800,000

$875

$700 million

New York

7,300,000

$863

$6.3 billion

North Carolina

3,500,000

$914

$3.2 billion

North Dakota

300,000

$1,000

$300 million

Ohio

4,800,000

$875

$4.2 billion

Oklahoma

1,300,000

$923

$1.2 billion

Oregon

1,500,000

$867

$1.3 billion

Pennsylvania

5,100,000

$902

$4.6 billion

Rhode Island

400,000

$1,000

$400 million

South Carolina

1,700,000

$882

$1.5 billion

South Dakota

300,000

$1,000

$300 million

Tennessee

2,400,000

$917

$2.2 billion

Texas

8,600,000

$907

$7.8 billion


Utah

900,000

$1,000

$900 million

Vermont

300,000

$667

$200 million

Virginia

3,000,000

$933

$2.8 billion

Washington

2,600,000

$923

$2.4 billion

West Virginia

700,000

$857

$600 million

Wisconsin

2,300,000

$957

$2.2 billion

Wyoming

200,000

$1,000

$200 million

United States

117,400,000

$903

$106 billion