Getting America’s Economy Back on Track
The freedom to work and spend as we choose is an essential part of the American dream. September 11th was an attack on that freedom.
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Our Lagging Economy Needs a Jumpstart ASAP
- This week's economic indicators make the case for tax relief:
- Manufacturing and trade sales are the weakest since 1990; and nominal industrial production is the weakest since 1961.
- Rise in jobless claims sent a four week average to a ten year record.
- Unemployment claims resumed their up-trend.
- Layoff announcements totaled 81,787.
- Commodity prices declined again, and analysts continue to cut earnings estimates.
- Sprint announced it was going to cut 6,000 jobs this week.
- The consumer confidence index fell 5 points last week.
Source: International Strategy and Investment
Why the tax plan will help Americans get back to work
The House tax plan maximizes economic growth up front. Two-thirds of the tax relief is provided in the first year, a total of $100 billion. This provides significant growth to the economy, now, when we need it most.
More and better paying jobs: The House plan will guarantee a minimum of 118,000 jobs each year for the next ten years. A total of 167,000 jobs would be created next year, and 220,000 by 2004.
More take home pay: A family of four would see an average increase of $940 in 2002 due to higher wages and lower taxes; and it increases the inflation adjusted gross domestic product.
Better quality of life: The GDP would increase by $16.3 billion dollars a year for the next ten years.
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As we work to discover those responsible for that terrible day, it is important to remember that encouraging job creation and investment must be part of both our domestic and foreign policies. The terrorists attacked our economic might because they know it is one of America’s most powerful weapons.
Recently the House of Representatives took action to get us back on track by passing the Economic Security and Recovery Act of 2001. This legislation provides the incentives to work and invest that we will need to effectively combat the economic repercussions of September 11th.
By combining much-needed tax relief for working families and ailing businesses of all sizes, this legislation recognizes the need for short term stimulus and long term investment.
The Economic Security and Recovery Act gives working families immediate tax relief by accelerating the 25% income tax rate reduction approved by Congress earlier this year and also extending tax rebates to those who did not qualify last spring. Giving millions of people the financial freedom to purchase a new vehicle or finish their holiday shopping will benefit all hardworking Americans.
The House passed this strong, pro-growth legislation to create jobs and get the nation’s businesses back on their feet. By reducing stifling taxes on investment we will revitalize innovation and production, creating new jobs and opportunities for Americans. One of the most important measures contained in this legislation is a reduction in the Capital Gains tax. Whether it is the firefighter with an IRA or the neighborhood investment club, this legislation gives all Americans a better return. With over fifty percent of the nation owning stock, the “Investor Class” isn’t just on Wall Street, it is Main Street too.
America has never been a complacent nation. When disaster strikes, we take action. This bill takes immediate action to reinvigorate our economy so that we are fully prepared to defeat terrorism.
