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Rep. Blackburn: Let Businesses Create Long-Term Solutions
OpEd for The Tennessean 1-23-08
Only a year after Congress switched hands, record job growth and record low unemployment have given way to troubling indicators.
Instead of taking prudent steps to fend off these disturbing trends, Democrats gave us a preview of what they will do if they had total control of Washington by proposing non-binding resolutions and non-starter trillion-dollar tax hikes. Valuable time has been wasted.
Bipartisan negotiations are now underway to craft an economic stimulus package. A stimulus package cannot be a grab-bag for every political constituency and special interest. We had plenty of that kind of legislation last year and look where it got us; in December of 2006, 140,000 jobs were created compared to only 18,000 last month.
A short-term shot in the arm won't do the trick here. Increasing America's permanent income is the surest path to economic growth.
To maintain the 52-month track record for job growth and keep the economy pumping, Congress must clear the congestion around the heart of our economy. That happens by lowering the corporate tax rate; permanently enacting tax cuts passed in 2001 and 2003; and providing specific tax and regulatory relief for small business, the engine of job growth in America.
Making it easier for companies to expand, hire, and grow must be a priority. Corporate tax rates in the U.S. are considerably higher than those in Europe and Asia. Combined with a weak dollar, high corporate taxes create a significant drag on the ability of American companies to compete in a global marketplace.
When Americans can choose how and where to spend more of their own money, the economy grows. In 2001, tax cuts reduced marginal income tax rates. 2003 cuts further cut taxes on married couples, dividends, and capital gains; and increased the child tax credit. In 2004, Congress granted sales tax deductibility for Tennesseans and accelerated depreciation for business investment.
This long-term infusion of capital into the wallets of Americans at every income level instilled confidence in the commercial sector and helped spur more than four years of consistent economic expansion. Permanently enacting these successful tax policies will allow Americans to keep more of their hard-earned money and create opportunities for businesses, families, and individuals.
The best economic stimulus is a job, and small businesses are America's primary employer. They are also often the first hit by hard times and more easily tripped up by the red tape that Washington compulsively wraps around everyone. Therefore, any economic stimulus package Congress adopts must encourage small business to continue investing for future growth.
We cannot merely offer America a year end bonus. A one-time payment and a quick photo op might make some politicians feel better, but to encourage investment and growth Washington has to give America a raise. Let's show the American people that Congress is serious about tax relief and economic growth by providing an economic stimulus package that generates long-term results.
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