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Economy
In a time of economic uncertainty, when unemployment is nearing 10% and spending by House Democrats is out of control, what is Speaker Pelosi's number one priority? (Video courtesy of the Office of the Republican Whip.)
Overview
Last summer’s energy crisis, the failures of some financial institutions, which contributed to frozen credit markets, and the troubles in the housing and auto industries have all contributed to a downturn in our economy and a drastic increase in American unemployment.
Unfortunately, our government’s approach to the economic crisis over the past year has been to bail out failed businesses and massive spending increases under the guise of stimulating our economy. Both have required unprecedented amounts federal borrowing. Each of these gargantuan expenditures has resulted in questionable benefits at the expense of individuals and businesses that made responsible choices.
We need a better solution. More government is not the answer. In order to foster a growing and healthy economy, Congress must enact policies that will increase our competitiveness, reward entrepreneurship and ingenuity. We need to craft common-sense, pragmatic policies that will quickly to foster job creation and allow Americans to keep more of what they earn.
Additionally, Congress needs to continue to investigate the causes of our current situation in order to determine ways to improve regulation of the financial sector and guard against predatory lending and unwise business practices. Congress must conduct aggressive oversight to protect taxpayer money allocated to fund the recent bailouts. To empower effective oversight, Congress will have to change some laws that prohibit appropriate transparency at the Federal Reserve. In pursuit of that goal I am a co-sponsor of the Federal Reserve Transparency Act of 2009 (H.R. 1207).
Crafting the Right Plan for American Prosperity
Earlier this year, the President signed the Speaker Pelosi’s “stimulus” plan, also known as the American Economic Recovery and Reinvestment Plan (H.R. 1), into law. Instead of providing relief to those who need it most, like small business owners, homeowners, job seekers and families, the bill is bloated with wasteful government spending that will increase the deficit by nearly one trillion dollars.
We all recognize that Congress needed to act quickly to provide relief to the American people. Yet the necessary urgency does not eliminate our obligation to make responsible decisions. Every dollar we spend on this stimulus package must first be borrowed. The nonpartisan Congressional Budget Office (CBO) estimated the American taxpayer will have to pay $347 billion in interest payments to finance this so-called “stimulus” bill. This brings the total cost of the package to well over $1 trillion dollars and will double our federal budget deficit.
You can learn more about specific examples of wasteful spending that does not stimulate our economy HERE.
House Republicans know we must restore confidence, encourage business growth and foster the creation of new jobs in America. The best way to put our nation back on the path to prosperity is by providing immediate tax relief for working families and small businesses, stabilizing home prices through a home-buyers’ tax credit and offering immediate assistance to the unemployed. You can learn more about these ideas by clicking HERE, or by visiting the House Republicans' Economic Solutions Center.
Turning America’s Economy Around
Prior to coming to Congress, my professional career was focused on helping small businesses and large corporations produce goods and services more efficiently, as well as helping manufacturers produce higher margins that created more jobs and made businesses leaner and more competitive.
Congress can take several steps to make America more competitive in the global economy and encourage job creation here at home.
- Enact an all-of-the-above energy plan: Adopting a new strategic energy policy will help to improve both our national security and our economy. If done correctly, such a policy will effectively use American engineering, ingenuity and entrepreneurship to overcome our energy challenges. We must stop sending billions of dollars, which could be invested here in America, to unstable foreign regimes. An “all of the above” energy strategy will help us attain greater energy independence, reinvigorate our economy and create thousands of new jobs, right here at home. You can read more about the All of the Above Energy plan click here.
- Lower the cost of health care: Nearly sixty percent of the uninsured are employed by small businesses. Small businesses represent ninety-eight percent of new businesses in the United States, and create two-thirds of new jobs. Unfortunately, rising health care costs are forcing more and more small businesses to stop offering insurance benefits to their employees. Addressing health care to improve coverage and reduce cost will make American businesses more competitive. To learn more about health care reform, click here.
- Improve trade for local businesses: Kentucky’s Fourth District has a significant advanced manufacturing presence. Many of those jobs depend on free, open and fair trade because a significant part of their business involves exporting products. Trade isolation will not save our economy – it is a prescription for economic death. We must continue to open new markets around the world for products and services produced here at home.
- Improving government regulation for small businesses: Small businesses are the engine of job creation in America. Roughly half of all private-sector workers are employed by small businesses. These businesses have created nearly eighty percent of new jobs in recent years. Our economic recovery will depend on the overall economic health of small businesses. Congress must focus on ensuring that regulation produces results and not simply more administrative costs that can stifle business growth and job creation.
Providing Much-Needed Tax Relief
Washington has a spending problem, not a revenue problem. We cannot tax our way to prosperity; increasing taxes now will cause more pain for families with tight budgets, force small businesses to cut more employees and further slow economic growth throughout the nation. Instead of rapidly spending borrowed money, Congress should enact policies that will work quickly to foster job creation and allow Americans to keep more of what they earn. It is far more effective to put the money directly in the hands of those who can use it to create long-term stable jobs.
- Extend Important Tax Relief Measures: Several tax relief measures are scheduled to expire at the end of 2010. If they are allowed to expire, taxes will rise across the board. The marriage penalty, which forces some married couples to pay more taxes than they would if they were single, would be reinstated. The Child Tax Credit would be cut by $500, the long-term capital gains tax rate will rise by one-third (to 20% from 15%), and the top tax rate on dividends would nearly triple (to 39.6% from 15%). If these tax increases are allowed to occur, it will discourage investment and slow our economic recovery. Congress must make sure these tax relief measures are extended.
- Permanently repeal the Alternative Minimum Tax (AMT): Last year, Congress enacted a one year patch on the AMT. Without the patch, the AMT would have cost many taxpayers an average of $2,000 in additional taxes this year. Without Congressional action on a permanent solution, as many as 50 million Americans could face the AMT in 2016. The AMT was designed to target a small percentage of wealthy taxpayers; it was never intended to be applied to working class families. I support the elimination of the AMT, once and for all.
- Permanently repeal the Death Tax: This tax is punitive in nature and is a tremendous burden on family farmers and small business owners. Funds that could be used to expand businesses or to hire more employees are instead used to pay accountants and lawyers to navigate the complexities of the Death Tax and ultimately a large bill from the government. According to the Joint Committee on Taxation, the death tax has “broad economic effects.” In fact, one study has found that the death tax is responsible for lowering overall employment by 1.5 million jobs over the previous ten years. I am proud to support legislation that would ensure the Death Tax is permanently abolished.
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Permanently extend the Research and Development Tax Credit: A permanent tax credit for research and development (R&D) creates a direct incentive for creating high paying jobs and developing next generation technology in fields like health care and energy. An R&D tax incentive would encourage companies to increase their research and development spending in the United States, stimulating the American economy and lowering unemployment rates.
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