Emergency Economic Stabilization Act of 2008

Floor Speech

EMERGENCY ECONOMIC STABILIZATION ACT OF 2008 -- (House of Representatives - October 03, 2008)

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Mr. NEAL of Massachusetts. First, let me thank Congressman Frank; he did a good job under very difficult circumstances, as did Mr. Rangel with the tax extenders that are part of this bill.

This is imperfect legislation, like much legislation that comes to the floor of this House, but we need to pass it today.

The national principle here is at stake. If there's a hurricane in Louisiana, we all come to the aid of the American family. If there's a forest fire in California, we all come to the aid of the American family. If there's a blizzard in New England, we all come to the aid of the American family. And that's precisely what this legislation does today.

Next week, when people are having difficulty getting a car loan, trying to refinance their mortgage or looking at their 401(k) plan, we acknowledge that they are all members of the American family, and we attempt today to come to their aid.

There is relief here for alternative minimum tax victims; 25 million people will benefit. Twelve thousand businesses are waiting for incentives for the R&D credit. Four million families and three million teachers are waiting for their deductions for education expenses. Thirteen million children in low-income families can finally claim the child tax credit.

This is a piece of legislation that helps the American family.

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Mr. NEAL of Massachusetts. I would like to thank the gentleman for yielding and I would like to ask him a question about the bill.

It is my understanding that the bill is designed to give all banks, especially community banks, which are very important in central and western Massachusetts, and because they are heavily regulated don't have any problems, regardless of size or organizational structure, ordinary tax treatment for certain holdings of Fannie Mae and Freddie Mac preferred stock. Banks, and in particular some State-chartered institutions, are allowed to hold such stock in passive investment vehicles where the bank is the majority investor under Federal law.

I encourage the chairman to work with the Secretary of the Treasury to ensure that all institutions have access to this relief, if he agrees it is intended to have an expansive reach.

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