TEXANS ON TAXES
We Texans are known for our bold opinions and big ideas. Your responses to my annual survey prove that theory holds true. Hundreds of you took the time to answer my three-part questionnaire and I appreciate each response. It is important for me to hear your thoughts on the issues facing our state and nation. In the first of a series of columns dedicated to your input, I'd like to focus on our nation's economic security.
Permanent Tax Cuts
Not surprisingly my question on tax cuts provoked an overwhelming response. I asked, "Last year the president signed into law the biggest tax cut in history. The law phases in repeal of the marriage penalty and the death tax, and cuts all income-tax rates. But the tax cuts will expire in 2011, 10 years after enactment, unless Congress votes to extend them. I believe Americans should be able to keep more of their hard-earned money. Which of the tax cuts would you most like to see made permanent?" Nearly 60 percent of respondents placed equal importance on eliminating the death tax and reducing the marriage penalty, while the remainder were split between across-the-board marginal rate reductions and increasing the IRA and 401(k) contributions. A small percentage, about 8 percent, also would like to see the child tax credit doubled.
There is good news to report for American taxpayers. Although we did have to incorporate a so-called "Sunset provision" into the 2001 tax relief package, one of our first orders of business in the 108th Congress will be to eliminate that provision and make the tax cuts permanent. This includes, of course, permanently repealing the marriage penalty and burying the death tax forever. I led the effort in Congress to reduce the marriage penalty and will lead the effort to erase it from our tax laws forever. Americans deserve dependable tax relief. Uncertainty in the tax laws makes it difficult to plan for the future, make work and investment decisions, and adequately prepare for retirement. We are also going to work on another economic stimulus package that will ensure strong economic growth and boost our stock market.
Pension Security
Congress is wrestling with how best to strengthen our nation's pension system and better provide for retirees. When given a variety of options aimed at helping to protect retirees' nest eggs, here is how Texans responded:
- 11 percent – "Allow workers to invest a portion of their Social Security contribution in a balanced portfolio of stocks and bonds"
- 42 percent – "Provide more information to workers about investment alternatives so they can make informed decisions"
- 11 percent – "Restrict the ability of workers to invest in the stock of the companies for which they work"
- 35 percent – "Give workers more control over shares contributed to pension plans by employers"
Though Congress passed corporate reform legislation that provides some safeguards for pension plan participants, more must be done to protect the retirement savings of American workers. I have introduced legislation that will encourage portfolio diversification and empower workers with more information and control over their portfolios. In the next Congress, I will work with my colleagues to ensure that reform of our nation's pension system remains a priority and is one of the first issues addressed.
Social Security Reform
Nearly everyone agrees that our Social Security program needs repair. Many proposals, including creating personal savings accounts within Social Security, have been discussed. Texans had strong opinions on this topic. Here are some of the responses I received:
- From Kingwood: "I am very concerned about people not being able to collect Social Security – we must fix the system before we baby-boomers retire."
- Refugio: "It is not the government's right to take and spend someone else's hard earned money."
- Andrews: "Don't let the government borrow from Social Security and forget about repaying it."
Fixing our ailing Social Security system is an important concern for all Americans, and Congress agrees. Providing investment choices for Social Security is something we must do to ensure the program is on solid footing when our children and grandchildren retire.
Stabilizing our nation's economy is paramount to the security of our country. Without a strong economic foundation, we cannot continue to successfully prosecute the war on terrorism and be the beacon of freedom for the world. The 108th Congress will work tirelessly to shore up our economy and ensure our nation has the financial strength and vitality to keep liberty alive.
November 22, 2002