SENATOR SUSAN COLLINS PROPOSES 5-POINT PLAN TO STIMULATE ECONOMY

WASHINGTON, D.C. – Senator Susan Collins today proposed a five-point economic stimulus plan aimed at assisting workers and the nation''s small businesses. "At a time when our economy is visibly struggling, small businesses and their employees are the most vulnerable," said Senator Collins. "Yet, it is the nation''s small businesses that will lead us out of this economic downturn. We should be doing all we can to support them and the millions of workers they employ."

The Senator proposed her plan in a letter to President Bush who is currently reviewing means of stimulating the economy. "My plan has five elements, two targeted at assisting dislocated worker and helping them find good jobs, and three aimed at kick-starting the true engine of our economy, small business."

Senator Collins''s plan consists of the following:

• Encouraging investment in small business by stimulating private investment in the entrepreneurs who drive our economy. This measure would provide targeted tax relief designed to motivate investment in small businesses.

• Increasing job training resources with a 50 percent increase in Workforce Investment Act (WIA) funding. WIA provides streamlined access to individualized career counseling, as well as workforce-related computer applications, vocational assessments, relocation assistance, internships, occupational skills training, job readiness training, and skills upgrading and retraining.

• Extending income support to dislocated workers. Recent data indicate that a significant percentage of dislocated workers receiving unemployment compensation are exhausting their benefits before being rehired. This provision would extend unemployment compensation by an additional 13 weeks for all eligible dislocated workers.

• Increasing small business expensing. This provision helps entrepreneurs purchase the equipment and fixtures they need to start or expand a small business and eliminates burdensome record-keeping requirements. The proposal would double the current $20,000 expensing limit in order to encourage growth and expansion of small businesses.

• Reducing the 39-year depreciation schedule for restaurants. The current depreciation period is unrealistic because restaurants require renovation every 6 to 8 years due to the wear and tear that accompanies heavy use. Reducing this to 15 years puts restaurants on an equal footing with convenience stores. The restaurant industry employs a significant percentage of the workforce and has been disproportionately affected by the terrorist attacks and the slowing economy.

"This plan can help the many workers and entrepreneurs who have made the American economy the strongest in the world. I look forward to working with the President, and my colleagues to move this plan forward," the Senator said.