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Washington, D.C. - It’s hard to believe all that our economy has sustained in the last couple of years: recession, a terrorist attack, corporate scandals and natural disasters. What is even harder to believe is the remarkable recovery the economy has made despite these major setbacks.
Thanks to bold Republican-led economic policies, today the economy is growing faster than any major industrialized nation.
We owe this amazing comeback to Republican tax relief packages in 2001 and 2003 that spurred our economic recovery and put money – more than a trillion dollars -- back into the pockets of American workers, families, and small businesses. In fact, these pro-growth policies have cut taxes at the average of about $1,700 per taxpayer. As Americans have spent this money, they have fueled the economic expansion we are now experiencing.
Some might call this rhetoric, but the numbers speak for themselves. Consider this: 6.6 million jobs have been created since the 2003 tax relief package; unemployment is at a low rate of 4.6 percent; and there has been 20 straight quarters of uninterrupted economic growth. Furthermore, income, wages, and household wealth are growing faster than inflation.
This economic growth has also sent tax revenues soaring. Two years of double digit growth in tax revenues has helped to shrink the deficit – in fact, it has been cut in half three years ahead of schedule.
We are witnessing this economic vitality at work here in our own community. Just this week, I hosted U.S. Secretary of Commerce Carlos M. Gutierrez at Milford-based Total Quality Logistics (TQL), a third party logistics provider specializing in truckload freight brokerage. Secretary Gutierrez was here to announce the Commerce Department’s latest economic report. TQL, one of our region’s fastest growing company’s, was selected as backdrop for the announcement because it exemplifies the strength of the regional and national economy. Since 1997, TQL has created more than 600 jobs with a commitment to add 600 more over the next three years.
I believe success stories like TQL’s not only represent the American dream, but are the reason the President’s agenda of lowering taxes and opening foreign markets is boosting jobs and fueling our prosperity here in Southern Ohio and across the nation.
So, when presented with the facts, doesn’t it make sense to make these tax cuts permanent? Is there any reason at all to repeal tax cuts and thwart our economic vitality?
That is why I was concerned when Representative Charlie Rangel, the ranking Democrat on the Ways & Means Committee, recently stated that he could not think of one tax cut that he would renew.
This could mean bad news for all of us because if the tax cuts are not renewed, the tax rates will certainly go back up. And that means less money in the hands of people and small businesses here in Ohio and across the nation. As just one example, the child credit would be cut in half, from the current $1000 to $500. This means that a family with two children would experience a $1000 dollar tax increase – and that is just the beginning. If the tax relief is allowed to expire, the average American family would see their taxes rise by more than $2,000 per year.
The facts are clear. Raising taxes will put the brakes on economic growth. That is why I am committed to working to prevent a massive Democrat-supported tax increase that could undermine our strong, vibrant economy.
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