The Hill
Economic Recovery Act is wiser alternative to massive spending
By Rep. Tom Price (R-Ga.) OpEd
Posted: 01/27/09 04:16 PM [ET]
Congressional Democrats have engaged in a full offensive to convince the American people that another massive dose of borrowing and spending is the solution to our economic tribulations. They talk of an economic near-Armageddon without as much as a trillion dollars in new spending. The rhetoric, in point of fact, sounds remarkably similar to the appeals for their last economic solution, the disastrous Troubled Asset Relief Program.
The truth is, proven by history, that massive government spending is not a solution. And the American people know there is another way — a real economic solution that empowers our people without mortgaging our future. After a year of bailouts, rebates and taxpayer-funded backstops, we can move toward renewed prosperity by unleashing the potential of and providing economic relief for our real economic growth engines — hard-working Americans and businesses.
Unfortunately, congressional Democrats and the president are immovable in their intent to spend our way into prosperity. So they have set forth a proposal heartbreaking in both its purpose and its consequences. It must be made clear: The Democrat proposal is not a stimulus, but rather a gross political opportunity to borrow against future generations to achieve ideological goals today. As White House Chief of Staff Rahm Emanuel recently said, “You never want a serious crisis to go to waste.”
This is a crisis of leadership. Instead of proven economic solutions, they have proposed a massive federal grab bag of giveaways. The problems with such a proposal are many and immense. But the real question is whether this approach actually offers solutions. Is it consistent with the American values and principles that provided our standing in the world?
In a crisis, we must not abandon our principles, but embrace them. The American economy has not flourished over two centuries because of our government but because of our people. Entrepreneurial and risk-taking Americans have labored with sweat upon their brows to ensure every generation of Americans is better than the one before. This American vision should dictate that our solution must empower our people and get Washington out of the way.
Fortunately, there are answers based on principle and real economics that can lift us up in the short term and over the long haul. The Republican Study Committee, led by Reps. Scott Garrett (N.J.) and Jim Jordan (Ohio), has introduced H.R. 470, the Economic Recovery Act.
Our comprehensive solution is based upon three imperatives for growth: providing tax relief for American families, reducing economic burdens on American businesses, and relieving future generations of a crushing debt burden.
This sensible, practical solution will immediately give American taxpayers greater freedom to save and spend by providing a 5 percent across-the-board income tax cut. The Economic Recovery Act increases the child tax credit and removes the penalties for withdrawing from 401(k) and IRA funds. These measures, among others, provide relief to those who are struggling while also providing incentives to invest for the future.
As the American people understand, business, not government, is where jobs are created, and our proposal unleashes the power of American enterprise to grow and invest in American workers. Cutting the corporate tax rate from 35 percent to 25 percent, the Economic Recovery Act puts us on par with the European Union, making investment in American business attractive once more. The proposal also encourages growth by allowing businesses to immediately deduct the costs of all assets and making the capital gains tax structure more investment-friendly.
And the legislation would not be complete without a down payment on reducing government spending. The bill includes a 1 percent across-the-board spending cut on all non-defense discretionary spending.
We stand at a crossroads, not just for our economy, but for the type of nation we want to be. A political economy may be attractive to Democrats in Congress, but the American people still value a system that rewards hard work and offers every American the opportunity for prosperity. We have put our proposal on the table, and Americans must know, there exist real solutions of which they can be proud.
Economic Recovery Act is wiser alternative to massive spending
By Rep. Tom Price (R-Ga.) OpEd
Posted: 01/27/09 04:16 PM [ET]
Congressional Democrats have engaged in a full offensive to convince the American people that another massive dose of borrowing and spending is the solution to our economic tribulations. They talk of an economic near-Armageddon without as much as a trillion dollars in new spending. The rhetoric, in point of fact, sounds remarkably similar to the appeals for their last economic solution, the disastrous Troubled Asset Relief Program.
The truth is, proven by history, that massive government spending is not a solution. And the American people know there is another way — a real economic solution that empowers our people without mortgaging our future. After a year of bailouts, rebates and taxpayer-funded backstops, we can move toward renewed prosperity by unleashing the potential of and providing economic relief for our real economic growth engines — hard-working Americans and businesses.
Unfortunately, congressional Democrats and the president are immovable in their intent to spend our way into prosperity. So they have set forth a proposal heartbreaking in both its purpose and its consequences. It must be made clear: The Democrat proposal is not a stimulus, but rather a gross political opportunity to borrow against future generations to achieve ideological goals today. As White House Chief of Staff Rahm Emanuel recently said, “You never want a serious crisis to go to waste.”
This is a crisis of leadership. Instead of proven economic solutions, they have proposed a massive federal grab bag of giveaways. The problems with such a proposal are many and immense. But the real question is whether this approach actually offers solutions. Is it consistent with the American values and principles that provided our standing in the world?
In a crisis, we must not abandon our principles, but embrace them. The American economy has not flourished over two centuries because of our government but because of our people. Entrepreneurial and risk-taking Americans have labored with sweat upon their brows to ensure every generation of Americans is better than the one before. This American vision should dictate that our solution must empower our people and get Washington out of the way.
Fortunately, there are answers based on principle and real economics that can lift us up in the short term and over the long haul. The Republican Study Committee, led by Reps. Scott Garrett (N.J.) and Jim Jordan (Ohio), has introduced H.R. 470, the Economic Recovery Act.
Our comprehensive solution is based upon three imperatives for growth: providing tax relief for American families, reducing economic burdens on American businesses, and relieving future generations of a crushing debt burden.
This sensible, practical solution will immediately give American taxpayers greater freedom to save and spend by providing a 5 percent across-the-board income tax cut. The Economic Recovery Act increases the child tax credit and removes the penalties for withdrawing from 401(k) and IRA funds. These measures, among others, provide relief to those who are struggling while also providing incentives to invest for the future.
As the American people understand, business, not government, is where jobs are created, and our proposal unleashes the power of American enterprise to grow and invest in American workers. Cutting the corporate tax rate from 35 percent to 25 percent, the Economic Recovery Act puts us on par with the European Union, making investment in American business attractive once more. The proposal also encourages growth by allowing businesses to immediately deduct the costs of all assets and making the capital gains tax structure more investment-friendly.
And the legislation would not be complete without a down payment on reducing government spending. The bill includes a 1 percent across-the-board spending cut on all non-defense discretionary spending.
We stand at a crossroads, not just for our economy, but for the type of nation we want to be. A political economy may be attractive to Democrats in Congress, but the American people still value a system that rewards hard work and offers every American the opportunity for prosperity. We have put our proposal on the table, and Americans must know, there exist real solutions of which they can be proud.
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