SENATOR CARDIN APPLAUDS SENATE PASSAGE OF AMENDMENT TO ENSURE FUNDING FOR DEFINED BENEFIT PENSION PLANS
Senator’s goal is to avoid plan terminations
WASHINGTON – U.S. Senator Benjamin L. Cardin (D-MD) today praised Senate passage of an amendment he authored with Senator Johnny Isakson (R-GA) that will encourage companies to continue their defined benefit pension programs by giving them greater flexibility in managing their pension obligations during this difficult economic downturn.
“Defined benefits plans are an important part of retirement planning and it is important to ensure the viability of the pension security system and to give retirees the benefits they have been promised,” said Senator Cardin, a strong advocate of improving retiree benefits. “This amendment provides temporary support for companies facing difficult economic challenges and it will ensure that workers will have the resources they need in retirement.”
Under the main provision of the amendment, employers would be allowed to choose from two options to spread out their pension obligations. Under the first option, employers would be able to repay their pension shortfall over seven years, but the seven-year amortization would start two years late. During the two-year delay period, the employer would only owe interest on the shortfall. Under the second option, employers would be able to pay back their pension shortfall over 15 years.
The amendment also removes a punitive provision that would impose an unfair burden on companies such as General Motors as they struggle to retain jobs during this economic downturn. It also provides union-managed, multi-employer plans the flexibility they need to continue to fund benefits and ensure retirement security for their workers.
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Two weeks ago, Young Democrats from across the state were joined by a host of big names including former DNC Chair Terry McAuliffe, Lt. Gov. Anthony Brown, Attorney General Doug Gansler, Comptroller Peter Franchot, Senate President Mike Miller, State Party Chair Susie Turnbull and more to get revved up and pumped for 2010. With the motto of “We’re Young Democrats and We’re Not Done Yet!”, we are ready to hit 2010 running.
As part of our convention, YDM released its first platform in 20 years which I urge you to read at:http://tinyurl.com/YDM2010Platform
On that note, I would like to invite you to YDM’s Second Annual Annapolis Day! We’ll be passing out our platform, hosting a reception for legislators and speaking on the issues important to us as Young Democrats. After the reception, we’ll be heading over to the Sly Fox for guest bartending with members of the Anne Arundel County Young Democrats!
WHAT: 2nd Annual Young Democrats of Maryland Annapolis Day
WHERE: 5:30-7 – Room 180 in the House Office Building. 6 Bladen St, Annapolis, MD 21401
7:00 – 8:30 – Sly Fox Pub in Annapolis – 7 Church Circle Annapolis, MD 21401
Interested in meeting with your legislator? Fill out this form and YDM will help you arrange a meeting!
Looking forward to seeing you there!
Jake Weissmann is President of the Young Democrats of Maryland
House Passes Kratovil’s Small Business Tax Relief Proposal
HIRE Act includes Kratovil-authored language to cut taxes on small businesses
Date: 3-4-10 – For Immediate Release
Contact: Kevin Lawlor, 202 225 5311
Washington, DC – Today, the House of Representatives passed a bipartisan jobs package that includes a small business tax relief proposal authored by Rep. Frank Kratovil. The Kratovil proposal, which he introduced last October as the Small Business Property Reimbursement Act, rewards small business owners who make capital investments in their businesses, doubling the maximum tax write-off for the purchase of new capital equipment made in 2010.
“Our number one priority must be getting Americans back to work,” said Rep. Kratovil. “For small business owners who are looking at ways to expand their businesses and hire more workers, this tax incentive will encourage them to make the investment now instead of waiting for the future. Instead of billion dollar bailouts for big banks, this is a smart, market-based approach to encouraging job creation by focusing on small businesses.”
Kratovil’s proposal extends Section 179 of the tax code, doubling the amount small businesses can immediately write off their taxes for capital investments and purchases of new equipment made in 2010 from $125,000 to $250,000. In addition to the Kratovil tax relief provision, the jobs package passed by the House Thursday includes a tax holiday for businesses that hire unemployed workers and an income tax credit of $1,000 for businesses that retain these employees. Additionally, the bill will provide an extension of the Highway Trust Fund that will allow for tens of billions of dollars in infrastructure investment and provisions that will make it easier for states to borrow funds for projects like school and energy construction.
“Instead of bailing out giant corporations, we ought to focus on strengthening the small businesses that support our local economies and drive economic growth. This bill does exactly that,” said Rep. Kratovil. “This package is more critical now given the current economic environment where small business hiring, capital spending and earnings are at record lows.”
Kratovil noted that the bill is fully paid for and will not increase the deficit; the non-partisan Congressional Budget Office has determined that this bill is fully compliant with recently-passed Pay-As-You-Go (PAYGO) requirements. The bill also provides the U.S. Treasury Department with significant new tools to find and prosecute U.S. individuals that hide assets overseas from the Internal Revenue Service and delaying tax breaks on foreign interest payments that have shipped jobs overseas.
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