House Democratic Leader Nancy Pelosi

FOR IMMEDIATE RELEASE
September 29, 2003

CONTACT:
Brendan Daly/Jennifer Crider
202-225-0100

Daschle, Pelosi: Republican ‘Economic Package’ Benefits Lobbyists On K Street, Not Families On Main Street

Washington, D.C. -- Senate and House Democratic Leaders Tom Daschle and Nancy Pelosi wrote to Speaker Hastert and Majority Leader Frist today regarding press reports indicating the Republican Leaders will introduce an economic package this week.

"The announcement of your plan is an acknowledgement that the Bush Administration’s tax breaks for the wealthy have failed to stimulate our economy as promised," the Leaders wrote in their letter.

"Unfortunately, the economic proposals you are advocating seem designed to benefit lobbyists on K Street, rather than families struggling to make ends meet on Main Street. These proposals are unlikely to create jobs or strengthen our economy; indeed, their net result could well be additional job losses. We hope that you will join us in supporting proposals that will help middle class Americans build a better future their children."

The Honorable Bill Frist
Majority Leader
United States Senate
Washington DC, 20515

The Honorable Dennis Hastert
Speaker of the House
United States House of Representatives
Washington DC, 20515

With 3.3 million jobs lost since the beginning of the Bush Administration, Americans nationwide are looking for new economic leadership. America’s national debt is now growing at a rate faster than our economy. The federal deficit for 2004 is estimated to be a record $500 billion. And the tax breaks that were supposed to revitalize our economy have only laid the groundwork for higher interest rates and sluggish economic growth for years to come.

Press reports indicate that Senate and House Republicans are planning to introduce an economic package to attempt to reverse the huge losses of American jobs over the past three years.

The announcement of your plan is an acknowledgement that the Bush Administration’s tax breaks for the wealthy have failed to stimulate our economy as promised. In fact, since the passage of additional tax breaks in May of this year, the economy has actually lost an additional 103,000 jobs. This is no surprise, as economic experts warned repeatedly that the President’s tax breaks would eventually lead to the loss of 750,000 jobs nationwide.

Deep cuts in small business loan programs and job training programs, as well as the continued delay in passing a strong six-year highway bill and extending the new child tax credit to low income families, have compounded America’s economic problems and further hampered an economic recovery.

This situation is regrettable because it is clear that there are far better ways to create jobs and help our economy. Democrats have proposed a number of fair, fast-acting, and fiscally responsible measures to jump-start America’s economy and provide real help for the nine million Americans who are still looking for work, including:

· A new tax credit for manufacturing companies

· Extending the child tax credit to the families of 12 million low-income children

· A strong six-year highway bill that will create hundreds of thousands of jobs

· Extending unemployment insurance for over 1 million people still looking for work

· Investments in homeland security to strengthen America and create 25,000 jobs

· A new job creation tax credit

· Meaningful state fiscal relief to prevent tax increases by cash-strapped states

· A new wage credit for every working American

· A new broadband tax credit for investments in high speed internet infrastructure

· A new small business health tax credit

Unfortunately, the economic proposals you are advocating seem designed to benefit lobbyists on K Street, rather than families struggling to make ends meet on Main Street. Press reports indicate that the Republican plan includes:

· Extending unfair tax breaks that mainly benefit the wealthy

· A five-month extension of the highway bill that will cost America 90,000 jobs

· Medical malpractice legislation, which undermines patient rights

· Class action legislation, which limits the rights of all Americans

· A partisan energy bill that includes billions in tax breaks for big companies

These proposals are unlikely to create jobs or strengthen our economy; indeed, their net result could well be additional job losses. We hope that you will join us in supporting proposals that will help middle class Americans build a better future their children. As always, we are ready to work with you to provide America with the new economic leadership that is so desperately needed.