From Congressman McKeon . . .
I recently wrote a letter to Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke and demanded that they ensure no taxpayer funds are misused by AIG or any other company who receives assistance. While Congress continues to ensure proper use of taxpayer dollars, it is also important that we set a bold agenda and look forward to effectively deal with this economic challenge.
What the country truly needs now is a strategic, common-sense plan to revive our economy, produce more American jobs, and ultimately ensure long-term prosperity.
In my opinion, Democrats do not seem to agree. Even after Congress was forced to pass a $700 billion rescue bill, the Majority is now threatening to add an additional $300 billion spending bill. They are characterizing it as a “stimulus bill,” saying our economic system needs more spending. This of course comes at the same time that House leadership is pushing to cut defense spending by $150 billion. I just don’t see the logic.
5-step plan for Economic Growth & Recovery
None of the options outlined by House Speaker Nancy Pelosi will stabilize the economy, encourage our markets, help small businesses, or salvage individual savings and retirement accounts; but Republicans have a five-step plan that I support to prompt economic growth and rapid recovery:
1. Giving families tax relief: This plan will make the tax code fairer and friendlier for the middle class by doubling the child tax credit from $1,000 to $2,000 per child to put more money back in the pockets of working families.
2. Keeping American jobs at home: The American corporate tax rate is the second highest in the industrialized world. This onerous 35 percent rate is passed on to consumers with higher prices for goods and services. This plan immediately reduces the corporate tax rate to 25 percent to give American employers the incentive to keep good paying jobs in America and reduce prices for American consumers.
3. Rebuilding 401(k)s and spurring investment through a zero capital gains tax: At a time of economic uncertainty, Congress should do everything in its power to encourage investment to help spur economic growth. To that end, this plan immediately and completely suspends capital gains taxes for individuals and employers on newly acquired assets for the next two years. This will not only encourage investment, but it will boost the value of sagging 401(k) accounts on behalf of workers and retirees.
4. Providing tax relief so American businesses create more jobs: This plan increases the Section 179 limits that allow small businesses to expense new equipment. The plan also extends bonus depreciation for an additional year and increases its value so that 75 percent of equipment costs can be deducted in the first year. It also provides net operating loss relief for all employers by allowing them to “carry-back” losses for three years (five years for small businesses). Such common sense actions would encourage all U.S. companies to make new capital investments and create good jobs for hard-working Americans.
5. Creating jobs through an “all of the above” energy plan: While the ban on developing our nation’s deepwater and shale oil and gas resources expired on Oct. 1, fulfilling the onerous requirements under existing law to explore these resources will take at least two years.
The Republican plan is built on strong principles and core conservative values. I am urging Speaker Pelosi to put partisan politics aside - despite the pending election - and embrace our plan. There are only so many cuts the Federal Reserve can make before Congress must act and that time is now.
Mending our economy will be a long process and it will require thoughtful revisions that protect the American taxpayer first and move to a responsible set of checks and balances. Please be assured that I will continue to follow this situation closely and fight on your behalf to revitalize our economy.
Tags: buck mckeon, financial markets