Last week, the Office of Management and Budget announced the nation’s deficit had been cut in half –three years ahead of schedule. Reducing our nation’s deficit is the direct result of pro-growth policies. These policies consist of fiscal restraint, effective energy legislation, and lowering taxes to encourage investment and job creation.
I believe Congress must continue to take a proactive and determined approach to controlling spending. Last year, we enacted spending reforms that resulted in $44 billion in savings to the American taxpayers. This year we have worked to eliminate 95 programs resulting in an additional savings of $4 billion. However, we must do more. I support legislation that would review government programs and make recommendations for the elimination or realignment of inefficient programs.
We have worked hard in Congress on legislation to strengthen our nation’s energy policy. Here in Kentucky, we are developing technology to turn coal into clean burning liquid fuel. I am proud to report that I have secured a $3 million authorization to enhance the development of this alternative energy source. Coal-to-liquids technology could have a profound impact on our domestic fuel market as well as create thousands of jobs in the Commonwealth.
Energy prices have a significant impact on the economy. Recently falling energy prices are having a positive effect on the Commonwealth’s businesses. Lower operating costs result in job creation and increased wages for workers. It has been reported that since August, prices at the pump have dropped a record 75 cents. When it costs less to fuel our cars and heat our homes, families have more to spend on the things they need and enjoy.
Across the nation, 37 months of consecutive job creation has resulted in more than 6.6. million new jobs. Here in Kentucky, our pro-growth policies are hard at work. From August 2005 to August 2006, we saw a .4 percent drop in the Commonwealth’s unemployment rate. Additionally from July 2006 to August 2006, Kentucky posted the largest employment growth in the nation, adding nearly 8,800 new jobs. Though there is still much work to be done, we must realize that these gains are not by chance.
Increased employment is a direct result of pro-growth tax policies. Earlier this summer, the House passed legislation extending essential tax credits and estate tax relief. Policies such as doubling the child tax credit, reducing the marriage penalty and reducing income taxes for every American have proven an effective way to strengthen and grow our economy. When Congress reconvenes I am committed to making these important tax incentives permanent. I will also continue to work on policies that increase fiscal restraint and lessen our dependence on foreign oil as we work to make the 4th District a prosperous and vibrant place to live, work and do business.