Last week at Point Breeze Credit Union in Bel Air, MD Rep. Frank Kratovil met with leadership and staff of local Credit Unions for a discussion about financial reform and how it will impact their institutions, small businesses, jobs, and the local economy. Kratovil stressed that he believes reform of the banking industry needs to begin with the larger Wall Street banks, and not the local community banks and small credit unions that are vital to our communities.
“We cannot go back to the failed policies of the past that created the economic crisis,” said Rep. Kratovil. “The irresponsible actions of Wall Street and Big Banks caused the financial crisis, but it has been taxpayers, small businesses, community banks, credit unions and working families that have borne the costs.”
Joining Kratovil were Representatives from the Maryland & DC Credit Union association, Point Breeze Credit Union, First Financial FCU, and Atlantic Financial FCU. Credit Unions have 176,146 members in Maryland’s First Congressional District and 1,449,373 total members in Maryland.
“Comprehensive regulatory reform is critical to our nation’s economic recovery and long-term growth. Now is the time for cooperation on behalf of the American people so that we can begin to see some real results that put people back to work and allow families to start saving again,” said Rep. Kratovil.
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.
###
Bipartisanship vital now more than ever
On Presidents Day, we learned that two-term senator from Indiana, Evan Bayh, was the next in a line of senior members of Congress who have announced that they are not seeking re-election. Bayh cited the lack of bi-partisanship on Capitol Hill as his reason for retirement, saying “there is too much partisanship and not enough progress — too much narrow ideology and not enough practical problem-solving.”
Since coming to Congress a little over a year ago I have been confronted with the same frustrations and have been searching to find consensus among my colleagues in a more and more contentious environment.
Bayh’s retirement strikes a particular chord among moderates like me. Bayh was known as a legislator who was willing to cross party lines and put principle before politics.
In trying times we need more men and women of similar character in Congress; but instead the system has forced a good deal of them to throw up their hands and give way to the more extremist factions of both parties.
In our history as a nation we have had the most success when we have legislated from the middle. The best ideas get their start with compromise and a willingness to negotiate across the aisle, not through the political bickering that only leads to entrenched ideologies where anyone’s success equals another’s political failure.
Republicans and Democrats have a set of principles that serve as the foundation for their party, but they also have a shared responsibility to move this country forward.
Many who have made bi-partisanship the hallmarks of their career, have ultimately lost faith in a system that seemingly rewards partisanship and favors those who fail to compromise. After more than a year in Congress I believe that we can change this failing system and bring back the type of government that the American people want and deserve.
One area where this change can begin is budget reform. Both parties agree that as a nation we can no longer afford to spend money that we do not have. For the sake of future generations we need to make the tough choices that American families are faced with every day. Neither party has a monopoly on good ideas, so instead of political posturing we need to come to the table and figure out a way to reform the budget process so that debt and deficits no longer threaten everything from our economy to our national security.
In my short tenure, I have tried to work with colleagues from both sides of the aisle and fought for initiatives that would encourage more openness, cooperation, and bipartisanship in Congress.
I remain dedicated to governing with the independent spirit that my constituents deserve and I will continue to seek compromise and consensus while urging my colleagues to do the same. If we can do this then we can make the changes to our system that will once again welcome legislators of good conscience who seek to put party politics aside and move our country in the right direction.
U.S. Rep. Frank M. Kratovil Jr., a Democrat, is the congressman from Maryland’s 1st District.
