FEATURE — Legislative Spotlight
Benefits of Reform to the
U.S. Economy By United States Senator Robert Menendez
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hile the idea of reforming Foreign Investment in Real Property Tax Act (FIRPTA) laws sounds complex and technical, the potential benefits of reform to the U.S. economy and job creation are quite clear. By increasing investment in commercial real estate, reform will jumpstart construction and real estate modernization projects and generate a need to build up surrounding infrastructure, including new sidewalks, roads and light rail projects. It will create a virtual cycle, creating American jobs not just for investments in the real estate sector but also business operations and surrounding infrastructure. There is no significant job creation proposal that I
know of in this Congress with stronger bipartisan support. Unfortunately, only in Washington is it difficult to act even on an idea that has widespread support. But with the help of businesses and communities all across the country, we can forge success on this common sense proposal. By 2018, more than $2 trillion in commercial real estate loans will mature. Because of the significant drop in property values in recent years, many of the loans on these properties are underwater and will require more equity to be refinanced. Ignoring the problem would mean less investment, more underutilized and vacant storefronts, fewer jobs, lower tax
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