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Congressman Ed Whitfield
On the Issues
EconomyThe hard work of the American people, combined with lower taxes, have helped our nation's economy grow at a record pace. The economy grew at a 4.8 percent annual rate in the first quarter of the year. This follows our economic growth of 3.5 percent in 2005 - the fastest rate of any industrialized nation that year. As the economy continues to expand, so does the job market. In fact, the economy has created over 2 million jobs during the past year - and more than 5.2 million since August of 2003.

Jobs
The national unemployment rate declined to 4.7% in March, lower than the average of the 1960s, 1970s, 1980s, and 1990s. In addition, over the past six years 369 firms have opened or expanded facilities in the First District creating over 12,000 new jobs. While we have more work left to do to in creating jobs, we are moving in the right direction.

We need to continue the economic development throughout our region. Some of my efforts include helping to secure $500,000 from the federal Delta Regional Authority for the West Kentucky Regional Industrial Development Authority to further develop the Four Star Regional Industrial Park. This federal money enabled the Authority to get access to $322,250 in local and State matching funds. This money helped secure a 428,000-sq.-ft. Columbia Sportswear Distribution center that was built in Webster County. The distribution center is now open and when fully staffed, will employ almost 400 people. I've also helped secure $2.4 million over the past two years to further develop the eight county industrial park project to be located in Graves County.

The coal industry is also an important component of economic development in the First District. It has created thousands of jobs for Kentucky citizens and has enormous economic benefits for the Commonwealth. In 2004, the Kentucky Coal Industry employed over 15,000 miners, creating a total of 61,158 jobs statewide and over $8 billion in economic activity throughout the state. Furthermore, I was pleased to see that the state recently moved forward on Peabody Energy's Thoroughbred Energy Campus in Muhlenberg County. Peabody predicts that the Thoroughbred Plant will have a $100 million annual economic impact for the State, creating 450 permanent jobs, as well as 1,500 jobs associated with the construction of the plant.

Economic development councils across the District are continuously working to attract new industries. One of the biggest attractions for businesses to locate in a particular area is the tax benefit the company can receive. These tax benefits can only be given by local and State governments. The First District will benefit from these new employment opportunities, and I will continue to work with local and State officials to help attract even more new businesses.

Tax Relief
Since coming to Congress in 1995, I have been committed to reducing the heavy burden of taxation on our nation's families and businesses. This is why I supported the Economic Growth and Tax Relief Act of 2001 which reduced federal income tax rates for all Americans. In addition, I supported the Jobs and Growth Tax Act of 2003 which lowered the taxes individuals pay on stock dividends and capital gains. Many seniors rely on the income from stock dividends in order to supplement their retirement income and these tax reductions have helped bolster that income. I supported these tax reductions because they were needed to help stimulate the economy. In fact, since the tax relief legislation was enacted, we have experienced 31 consecutive months of uninterrupted job growth. College graduates are now entering the strongest job market in five years, and more and more Americans are able to save their hard earned salaries.

In addition, I continue to support legislation that eliminates the marriage penalty, the death tax on family farms and small business, and the phone excise tax enacted over a hundred years ago to pay for the Spanish-American War. I also support expanding educational and child tax credits, contributions to Individual Retirement Accounts (IRAs), and deductions for health insurance and long-term care.

We also need to reform the overly complex tax code. The IRS estimated that in the year 2000, Americans spent 3.2 billion hours and up to $99 billion dollars organizing and paying their taxes. With over 150 tax reductions, exemptions, and rebates in the tax code, it is no wonder why so many Americans struggle with the complexity of taxes.

American families work too hard not to keep more of their money. I will continue to work with my Democratic and Republican colleagues to reduce the overall tax burden and to simplify the tax code.

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