Keeping the Economic Recovery Going
With April 15th a recent memory, millions of Americans have discovered that their taxes have gone down thanks to the tax relief passed last year. This relief will help millions of American families make improvements to their homes, take summer vacations, or maybe buy new appliances. All of these possibilities translate into good news for our economy. We've already seen tremendous job growth in the first few months of this year. In March the payroll survey indicated that 308,000 jobs were created and the jobs numbers for January and February were revised upward to 159,000 and 45,000 respectively. These are very strong numbers, but the household survey, which counts workers like the self-employed who aren't included in the payroll survey, has shown even stronger growth. The household survey demonstrates that nearly one million jobs have been created since August 2003.
With tax refunds in the mail across the country, we will see that growth continue. According to the Department of the Treasury, 111 million individuals and families will receive an average tax cut of $1,586 this year because of the tax relief approved in 2001 and 2003. Furthermore, 43 million families with children will receive an average tax cut of $2,090 and small businesses an average reduction of $3,801. This tax relief will go a long way toward sustaining our economic recovery, but more work remains to be done.
First of all, we need to make the tax relief permanent, so that families and small businesses can adequately plan for their futures. Investment decisions cannot be made under a cloud of uncertainty. Secondly, we need to continue to pursue policies that give businesses the flexibility they need to be as productive as possible. The recent workman's compensation compromise reached here in California is a prime example of that. When government does its part to make it easier for an employer to hire more employees, I believe it's doing the right thing. Government should pursue policies that foster growth and innovation, not stifle it. Finally, we need to continue to stay focused on education and job training for those still seeking employment. Our economy is constantly changing and all Americans deserve to be a part of the new opportunities being created. Continued job training will help those needing to make the transition to the dynamic 21st century economy.
The future of our economy depends on how we prepare now. The evidence suggests
we're on the right path. If we pursue the right policies, all Americans will
benefit.
