Atlanta Mayor Wants Stimulus Plan to Focus on Poor Americans

WASHINGTON — Appearing with Senate Democratic leaders in the Capitol on Wednesday, Mayor Shirley Franklin said Atlanta needs a federal economic stimulus package that focuses tax rebates on "people at the bottom of the economic ladder" and makes more people eligible for food stamps.

Franklin said about a quarter of Atlanta residents live at or below the federal poverty level and they would quickly spend any tax rebate and stimulate the economy. For a family of four, the federal poverty level is $20,650 a year and these earnings are not subject to federal income taxes. President Bush has not rejected Democratic calls to provide rebates to these low-income workers even though they don't technically have any taxes to cut.

Bush's $145 billion plan is centered on tax cuts for business and rebates for individual taxpayers, according to the Associated Press. The president has not offered details, but administration officials are focusing on rebates of $800 to $1,600 for individuals and couples and depreciation tax breaks to allow companies to deduct half of business investments made this year. He also supports help for small businesses with more generous write-offs on equipment purchases.

In the nation's capital for the annual winter meeting of the U.S. Conference of Mayors, Franklin and other mayors spoke at a press conference with Senate Majority Leader Harry Reid, D-Nev.; New York Sen. Charles Schumer, Democratic conference vice chairman; and Michigan Sen. Debbie Stabenow, Democratic steering and outreach committee chairwoman.

The Democratic senators said the emergency economic stimulus package should be only the first step toward helping Atlanta and other cities.

"Cities are seeing jobs disappear and incomes drop," said Reid. "We must make sure there is a long-range plan as well as our short-term plan."

"We need a one-two punch to deal with the economy," echoed Schumer, who said "it makes no sense" for the federal government to give tax rebates if cities have to raise their property taxes to pay for deteriorating infrastructures and a housing crisis brought on by the sub-prime mortgage collapse.

"I come as a mayor looking for a partner," Franklin told the federal lawmakers. Tax revenue collections are down in Atlanta while demand for public services has increased, she said.

Specifically, the mayor said, Atlanta needs an economic stimulus package that changes qualifications for food stamps to make it easier for people to qualify. Not only does that provide food for poor people, she said, but it boosts the economy because the products purchased come from American farmers and manufacturers.

Franklin said the package should also provide more funding for community block grants which give cities flexibility in how the money should be spent.

And, she said, most importantly, "people at the bottom the economic ladder should get a lot of attention" with the tax rebates. People who earn more are likely to invest the rebates, she said, but poor people will need to spend it immediately and thus jump-start the economy.