Mercer Island, WA – Rep. Dave Reichert (WA-08) praises the latest numbers on the economy:

"The latest budget numbers are proof again that the recent tax cuts are working.  According to the Congressional Budget Office (CBO), a near-record-setting rate of growth of tax receipts increased federal revenue by roughly $253 billion from fiscal year 2005 to fiscal year 2006. Since 1981 the growth rate in federal revenue has only been higher once, in fiscal year 2005 when revenue grew 14.5%.

"America's economy is strong and is continuing to grow stronger. There have been thirty-seven consecutive months of uninterrupted job growth, with 1.7 million jobs created over the past twelve months and 211,000 new jobs created in March alone. The current unemployment level is 4.6%, which is lower than the average of the 1970's, 1980's, and 1990's. Pro-growth economic policies have created an environment that encourages people to invest, to save and to start small businesses. Low taxes are the centerpiece of pro-growth policies.  When people are allowed to keep more of their own money, they can spend more and invest more. This sort of action stimulates the economy and more tax revenue is generated."  

Citing "the fastest wage growth in more than five years," the Washington Post reported Saturday, October 7, 2006, on the strength of the expanding economy:

"Unemployment went down and paychecks went up last month [i.e., September], the government said yesterday, and it added that job growth for the year ending in March may have been far stronger than previously thought. Workers found jobs and got paid more, while consumers hit the stores and auto showrooms to spend some of the extra cash gained from falling gasoline prices."

Reichert continued, "In both 2001 and 2003, Congress passed a variety of tax cuts that have helped our nation's economy grow while putting money back into the pockets of the people who earned it. These tax cuts included reducing the tax rates and simplifying the tax structure, doubling the child tax credit, reducing the marriage penalty and eliminating the death tax.  Unfortunately, without further Congressional action these tax cuts will expire and result in one of the largest tax increases in the history of the United States. Congress needs to act to make these tax cuts permanent and continue the positive trend in our economy. "

By the numbers:                             

• The Budget Deficit has Shrunk Dramatically: The Fiscal Year 2006 budget deficit was $248 billion, 1.9% of the gross domestic product (GDP) and a $71 billion decline from last year.
• Job Creation Continues: More than 6.6 million jobs created since August 2003 – 1.7 million new jobs over the past 12 months and 37 straight months of job growth.
• U.S. Unemployment Rate Remains Low: The U.S. unemployment rate is 4.6 percent – below the average of each of the past four decades.
• Employment Increased In 48 States Over The Past 12 Months Ending In July.
• Over The First Half Of This Year, Our Economy Grew At A Strong 4.1 Percent Annual Rate – Faster Than Any Other Major Industrialized Country.
• Productivity Has Grown A Strong 2.5 Percent Over The Past Four Quarters, Well Ahead Of Average Productivity Growth In The Last Three Decades: Strong productivity growth helps lead to GDP growth and higher real wages.
• Gas Prices Continue to Drop: Prices at the pump have dropped nearly 75 cents nationwide since early August.
• The Stock Market is at Record Levels.