February 5, 2009 Issue
Talking About the Stimulus
Republican Representatives Virginia Foxx and Patrick McHenry and Republican Senator Richard Burr have released statements on the federal stimulus package that has passed the House of Representatives and is now under consideration in the Senate. Democratic Senator Kay Hagan has not released a statement. Here’s what Foxx, McHenry and Burr had to say:
Foxx
“The economic challenges facing our country today are great. Americans expect Congress to take seriously the need to get the unemployed back to work and to help small businesses, the engine of our economy, create most of those jobs. Doing the right thing means we must cut taxes for small businesses and all American families rather than spending billions on pet projects that do nothing to stimulate the economy.
“This $825 billion borrow and spend plan that shells out $7.7 billion for programs that already have a budget surplus, that spends more than $330 million for sexually transmitted disease programs and that fritters away another $400 million for NASA global warming research does not measure up.
“We are being told that action is urgent but only 15 percent of the spending in this bill will get into the economy in 2009 and only 35 percent in 2010. That’s why today I will vote for an alternative plan that focuses on tax relief which leaves more money in the hands of working families instead of giving more money to government which is little more than pork barrel spending.
“Borrowing and spending the equivalent of $10,500 for every household in America will do little to nothing to create new jobs and will put us further down the road to a national debt catastrophe. I urge my Democrat colleagues to consider the proposals put forth by Republicans to bring fast, efficient economic relief through targeted tax cuts for families and employers.”
McHenry
“No one doubts the severity of our country’s economic challenges, from my colleagues in Congress to my neighbors in Western North Carolina. Families are having trouble making ends meet and workers are losing their jobs. Action is needed. Unfortunately, the Democrat majority in Congress held a vote last week on a so-called ‘stimulus’ bill that has little to do with stimulating our economy.
“When the process of crafting this legislation began, I genuinely believed that Democrats and Republicans would put partisanship aside and work together to the benefit of all Americans. President Obama and House Republicans signaled a willingness to work together on a proposal that would include tax policies that encourage job creation as well as targeted investments in infrastructure projects that would help stimulate the economy.
“The President and House Republicans agreed that in order for the bill to have credibility with the American people, it absolutely must not include pork barrel spending. The only way to achieve this was for the legislation to be crafted and debated in an open, thoughtful and bipartisan way.
“What followed was a secretive, hasty and partisan process that clearly demonstrates the Democrat majority’s disregard for America’s desire for bipartisan cooperation in this time of crisis. The resulting legislation is a massive spending bill that devotes “tens of billions of dollars to causes that have little to do with jolting the country out of recession,” as described by the Associated Press. The bill allocates billions for the National Endowment for the Arts, new cars and computers for government workers, and ACORN, the liberal political group under federal investigation.
“Only 3% of the funds are dedicated to road and highway infrastructure projects. In fact, the only sector of the economy that may see modest job creation is the government. The legislation creates 32 new government programs and spends $646,214 for every government job created. To make matters worse, the nonpartisan Congressional Budget Office reports that over half of the money will be spent between 2011 and 2019, after the economy is expected to recover.
“All of this wasteful spending is regrettable because it detracts from truly worthy projects which provide both short-term stimulus and lasting economic impact. For example, investments in building broadband infrastructure will create manufacturing and technology jobs in Western North Carolina.
“For all the billions in pork barrel spending, the legislation offers next to nothing in the way of tax relief for working families and small businesses, the backbone of our economy. Just 2.7% of the bill is dedicated to small business tax relief, despite the fact that 90% of the new jobs in this country are created by small businesses.
“With so many of my constituents struggling to keep their heads above water financially, I could not in good conscience vote for a bill that forces them to bankroll $819 billion worth of deficit spending. I am in agreement with so many economists who predict that this legislation will have disastrous effects on America’s long-term economic security and lead to massive tax increases on working families.
“I remain committed to working toward policies that will rebuild our economy and create good jobs without burying generations of Western North Carolina taxpayers in debt.”
Burr
“Our economy is currently facing enormous challenges. People and employers are still having a difficult time getting credit—credit that allows them to make large purchases, buy equipment, invest for the future, and fund their daily business operations. As a result, businesses are struggling to stay afloat, workers are being laid off, and families are bearing the brunt of the economic storm.
“President Obama and Congress are currently working on a stimulus bill in the hopes of jumpstarting our economy. The legislation currently being debated in Congress would spend almost a trillion dollars of borrowed money on projects and programs that are unlikely to produce any real broad-based stimulus or create jobs that will still be here two years from now. This spending would be on top of the $1.2 trillion budget shortfall that the federal government is already projected to have in this year alone. If the bill the Democrats have proposed in the Senate does not change drastically, then I will not be able to support it.
“Instead, I believe our first priority should be to help stabilize the housing crisis, which was the spark of this economic downturn. By guaranteeing low-interest, fixed mortgage rates, we can help homeowners stay in their homes and entice prospective home buyers to get off the sidelines. This would get to the root cause of what’s harming our economy and light the path toward recovery. At the same time, we should let taxpayers be the drivers of economic growth by allowing them to keep more of their hard-earned money through lower income tax rates.
“If the president and Congress want to stimulate the economy, we better get it right. If we don’t, we will not only prolong this economic recession, but Americans for generations will also be faced with either massive tax increases or severe cuts in federal programs to pay off the enormous debt we have accumulated.”
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