NRF: Bailout plan to protect Main Street jobs

WASHINGTON D.C. The House of Representatives voted to pass the financial bailout plan, which was originally rejected due to the voiced concerns of constituents in a time when state and national elections are on the near horizon.

The National Retail Federation welcomed the passage of legislation. “This legislation will help protect jobs on Main Street by restoring confidence and stability on Wall Street,” said NRF senior vp for government relations Steve Pfister. “Yesterday we stood on the verge of an unprecedented financial calamity that had already begun to threaten millions of Americans regardless of whether they were investors, owned a modest 401(k) or simply held a job. Today, the House has voted for a plan that will maintain the ability of American consumers and businesses to obtain the credit needed to keep our economic engine running and to pave the road to economic recovery.”

The legislation also includes two significant and longstanding retail priorities that were added to the bill earlier this week by the Senate. The first is a provision that would renew a depreciation rule that expired at the end of 2007 that allowed retailers who lease their stores to write off remodeling expenses over 15 years rather than the previous 39 years. The rule would be extended through the end of 2009 and also expanded to include owned stores for the first time in response to NRF’s arguments that it was unfair to put retailers who own their stores--many of them small or rural merchants--at a disadvantage. The second provision is a measure strongly backed by NRF that would require health plans to provide the same level of coverage for mental illnesses as physical illnesses. The bipartisan compromise says coverage for mental health can be no more restrictive than for other coverage, including co-pays, deductions and out-of-pocket expenses.

“Retailers have worked diligently over the past several days to make sure members of the House and Senate fully understood the profound impact the lack of functioning credit markets would have on businesses and consumers across the nation,” Pfister said. “Whether you work in a retail store, a factory or in the service sector, the job of almost every American depends on his or her employer’s ability to obtain credit to buy materials, update equipment and make payroll. Without readily accessible business credit, hard-working Americans could quickly find themselves out of a job. In addition, today’s trying economic times make credit more important than ever for consumers trying to make ends meet. Today’s vote was a vote to protect American jobs and the American economy.”