JOHN CARTER

The American economy, as resilient as it is, is charting rough waters, while soaring cost of living have forced working families to tighten their belts in order to make ends meet.

So why isn’t the federal government doing the same thing?

Many of you have heard or read about the budget which recently passed Congress. What you may not realize is the impact this budget will have on you as an individual and on families across Central Texas.

Between now and 2011 there are a number of tax cuts that are set to expire unless Congress extends them, including the Death Tax, the Child Credit Tax and the Marriage Penalty Tax.

Unfortunately Texans know far too much about the effects of the Death Tax. Under a 2001 tax relief law, the federal Death Tax is gradually being phased-out until it is eliminated completely in 2010. Because of Senate procedural roadblocks, however, the Death Tax will only be gone for one year, coming back to life in 2011. That means when small business owners, farmers and other American working families wake up on New Year’s Day 2011, they’ll be subject to one of the more burdensome taxes on the books today. It also means that it is nearly impossible for families to make long-term financial decisions related to the Death Tax because they do not know when they are going to die.

Across the street from my church is a 400 acre farm. Right now, the second generation of that family is farming the land, and someday they hope to pass it down to their children, the third generation. Due to the growth in the area, the value of the land has increased dramatically since the family first started farming the land. This is not an extremely wealthy family, but the value of their land has increased so they will be required to pay the Death Tax once it is passed down, which, from 2010 to 2011, will jump from 0 to 55 percent. The Democrats FY 09 Budget will resurrect the Death Tax in 2011 for families such as this one.

It wasn’t too long ago when almost half of married couples found that on April 15th, because they were married, they were required to pay more in taxes. This so called Marriage Penalty Tax showed up in 1969 to equalize what used to be an unfair tax advantage for married couples. In 2003, Congress passed the Jobs and Growth Relief Reconciliation Act in order to reduce the crippling impact of the tax on married couples. The problem is this reduction wasn’t permanent, and the Democrats new budget has no plans to keep this critical tax provision in place. Since this tax cut won’t be extended, roughly 23 million taxpayers will see their taxes increase, on average, $466 in 2011, simply because they are married.

Over the past few years families have received welcomed tax relief thanks to the Child Tax Credit, which allows many families to reduce the amount of federal taxes owed by $1,000 for each qualifying child under the age of 17. The Child Tax Credit is an actual reduction of your taxes, not just a deduction from your taxable income. In 2005, the Child Tax Credit was set to be reduced to $700, but recognizing the need to maintain the current amount, Congress passed the Working Families Tax Relief Act of 2004 in order to keep the credit at $1,000 per child through 2010. Unfortunately, the new Democratic budget will slash this credit by 50 percent in 2011 raising taxes on families who benefit from the tax credit by $500 per child. Across the country, approximately 31 million taxpayers with children will see their taxes increase, on average, $859 in 2011.

While these three tax provision will affect many Central Texans, they are not the only tax increases that Democrats have in store for Texans. On top of reinstating the Death Tax and Marriage Penalty, and rolling back the Child Credit Tax, the FY 2009 budget will raise the 10-percent tax rate bracket to 15 percent, affecting more than 6 million individuals and families who previously owed no taxes.

All in all some 116 million taxpayers nationwide will see their taxes increase, on average, $1,833 in 2011 alone. In Texas and District 31, taxpayers will see an increase of $2,100 to their tax bill. Elderly couples with $40,000 in income will see their tax bill rise by 156 percent in 2011, from $583 to $1,489 and a family of four earning $60,000 will face a 70 percent tax hike, with their income tax bill rising from $2,733 to $4,634, an increase of $1,900.

Last year’s budget was bad, but this year’s budget breaks all the records by imposing the largest tax increase in American history, roughly $683 billion, mainly to finance the Majority’s hundreds of billions in new spending. The Democrats’ economic policies today bear a striking resemblance to the failed tax-and-spend policies of the 1970s.

Back then, it took a Republican president and the conservative revolution he founded to do away with those high-dollar, high-tax liberal policies. In a 1986 radio address, Ronald Reagan said, “You know, our Founding Fathers considered the power of the purse the most important responsibility of the legislative branch. If that power is abused, it can have very serious consequences for our nation, not only threatening our prosperity with huge budget deficits but, ultimately, undermining the economic foundations of our safety and national security.”

President Reagan was absolutely right-a budget is much more than a set of numbers on a slate, it is a reflection of our national priorities. It is a test of whether we have a strategic vision for America’s future. On that score, Washington Democrats have failed the American people.

It is fiscal priority debates like these that so define the difference between House Democrats and Republicans. I will to work on behalf of Texas families to implement forward-looking fiscal policies that hold the line on spending and keep taxes low for hardworking Americans.

In 1938, Franklin D. Roosevelt delivered one of America’s first nation-wide radio addresses. In that historic address he said, “The only sure bulwark of continuing liberty is a government strong enough to protect the interests of the people, and a people strong enough and well enough informed to maintain its sovereign control over the government.” These words of our past should serve as a reminder to every member of Congress. Our primary goal is to protect the interests of the American people, and keep them informed about where and how their tax dollars are being spent.

Last November, the American people sent a clear message to members of Congress. You want an honest, open government that isn’t spending your tax dollars, through earmarks for secret projects, anonymously buried in lengthy legislation and hidden from the public. The American people deserve transparency in spending, and that means transparency across the board.

We can look to Congressman Charlie Rangel, Chairman of the House Ways and Means Committee, for a perfect example of why we need earmark reform in government bills. He earmarked $2 million for the “Charles B. Rangel Center for Public Service at the City College of New York. The center is seeking donations through a ‘20-page glossy brochure’ to restore a ‘magnificent Harlem limestone townhouse’ that will provide a ‘well-furnished office for Congressman Rangel.’” (OpinionJournal’s Political Diary, 7/20/07).

And let’s not stop there. Congressman Paul Kanjorski is under fire for steering $9.25 million in tax dollars to a company owned by his family. According to one leading Washington newspaper, the company, Cornerstone Technologies, ‘was formed by his nephew, Peter Kanjorski, and a scientist Bruce Conrad, who were joined in the company by four of the congressman’s other nephews and his daughters…[S]eparate from House rules, federal law prohibits members of Congress from contracting with the federal government.’ (Politico, 9/5/07)

We all remember the news reports concerning the “Bridge to Nowhere”. To address these loopholes, Republicans reformed the earmark process, requiring full transparency and the ability to challenge earmarks in all types of bills. Unfortunately, the Democrats chose to roll back these reforms at the beginning of this Congress.

Time after time, Washington liberals continue to show they are more concerned with funding their own private interests secretly than living up to the promises they made about open government at the beginning of this Congress.

In June, I joined my conservative colleagues to introduce a resolution, H.Res. 479, that would fully restore the reforms implemented by Republicans in 2006. But so far, Democrat leaders refuse to put the resolution to a vote.

That is why we began a legislative procedure, known as a discharge petition, that would override Democratic Leadership and bring this earmark reform legislation to the House Floor. I am seeking to close all loopholes that allow the current system to remain broken. If a member of Congress is willing to spend your hard-earned money on a project, they have an obligation to stand by that project and explain its value and purpose.

The American people need someone to stand up for them, and it is clear that the new Majority in Congress isn’t willing to give up their hidden handouts and do the right thing by reforming and making the earmark process honest. I have signed this petition to prove to the people of Central Texas that I will fight relentlessly to give them the open, honest government that was promised at the beginning of this Congress. I hope that my fiscally conservative colleagues from both political parties will join me and sign this discharge petition, showing the American people we will not stand for the continued fleecing of this nation.

There are two philosophies at work in Washington, D.C. On the one side, there are those who, like you and me, believe the government should be responsible in its spending. Taxes should be low because that is the key to economic growth and job creation. But, on the other side, there are those who believe there should be a big government program to solve all your problems– and they will take the money from your paycheck to pay for it.

This week the House of Representatives began discussing the Fiscal Year 2008 budget resolution in the House Budget Committee. The federal budget that emerges from the Committee and receives a vote on the House Floor will serve as an outline to prioritize the government’s expenditures for the next fiscal year.

Since taking the reins of Congress in January, the Democrat leadership has made no secret about their desire to raise your taxes. Under this liberal stewardship, the tax cuts enacted by this Congress in 2001 and 2003 will be allowed to expire; effectively raising taxes on the American people. This tax increase would be the largest in American history - $392.5 billion over the next five years.

Included in the Democrats new “tax and spend” strategy for America is a $27 billion reduction to the Child Tax Credit, a $13 billion increase in the marriage penalty, and an astounding $91 billion increase in the Death Tax. In addition, they have instituted “pay-as-you-go” (PAYGO) measures that require raising taxes to pay for their wasteful spending.

The PAYGO measures are especially worrisome because liberals in Congress have never met a government project they didn’t like. For each and every government fix they can devise, they are going to take the money out of your pocket. Already the stage is set for an additional $115 billion in federal spending. Current-year spending had been increased $6.1 billion to date, and then last week $24 billion in additional funds were added to the emergency war supplemental spending bill. Now, this budget is adding $22.5 billion in non-defense, non-emergency spending for the next fiscal year.

In addition to higher taxes and runaway federal spending, the Democrats’ budget refuses to deal with one of the largest looming threats to our fiscal security – entitlement spending. Social Security and Medicare at their current rates must be reformed, or runaway growth will consume the entire federal budget in the future. This budget, in current form, leaves a big mess for our children and grandchildren.

There is no accountability for the massive growth of government being proposed by liberals in Congress. While tax cuts may expire, there is no expiration for new spending - these programs will continue indefinitely.

Congress must function like an American family – with balanced books. There must be a sense of accountability to the taxpayers and a commitment to spend the hard-earned money of American families with responsibility. If our economy is to continue to prosper and create jobs, then the tax burden must remain low, and we must control spending. As this debate continues, Congress should err on the side of fiscal restraint, and not enact the largest tax increase in American history. You can count on me to fight for our Central Texas values and oppose massive federal spending and the tax increases to pay for it.

Due to technical restrictions, Congressman Carter is unfortunately not able to directly answer questions posed on this forum.

The U.S. government is funded through a series of annual spending bills that provide for such basics as our Armed Services, homeland security, and Medicare. Much of this funding is routine, only requiring slight adjustments from year to year. But certain unforeseeable circumstances, such as 9/11, the War on Terror, and Hurricanes Katrina and Rita can require additional federal funding. This additional funding forms what is called a, “supplemental spending bill,” or sometimes, “emergency supplemental spending bill.”

Our brave servicemen and women in Iraq and Afghanistan regularly receive funding through these supplemental spending bills. As money is needed to supply armor, ammunition, or equipment and supplies, Congress authorizes the additional funding. By nature these bills are intended to fund the unexpected, yet immediate, needs as they arise.

Next week, the House of Representatives will be discussing an emergency war supplemental bill to provide for the basic needs of our servicemen and women serving in harm’s way. But sadly, the Democratic majority has opted to play politics with this very basic responsibility, by loading it with an additional $21 billion in pet programs and projects unrelated to our soldiers.

In doing this, liberals in Congress have made light of a very serious obligation – to fully fund those protecting our freedom. The reason the Democrat leadership is loading this bill with so much pork is because they have added provisions to set a timeline for defeat in Iraq. This dangerous attempt to micromanage the war has met much resistance from liberals and conservatives. In order to secure enough votes to pass the bill, the leadership is attempting to win votes with pork. Their antics jeopardize the timely need to pass such legislation by increasing the chances of a presidential veto.

The projects that Democrats inserted into the supplemental are completely irrelevant to the mission of our soldiers. For example, $60 million for California and Oregon’s salmon fishery disaster of 2006, $400 million for a timber revenue program in Oregon, $400 million in low-income home energy assistance for state grants, $448 million un-requested funds for state children’s health insurance programs, and a half a billion dollars for wildfire management and suppression.

Many of these are undoubtedly valuable projects, but they don’t belong in an emergency war supplemental. Instead, they appear to be nothing more than an attempt to buy votes at the expense of our soldiers in the War on Terror. The supplemental is meant to be an emergency troop funding vehicle, and there’s no excuse for $21 billion worth of pork in that supplemental.

There is plenty of time for Democrats and Republicans to debate and discuss these programs on their own merits without making a political statement in the war supplemental. The emergency war supplemental is the wrong time and the wrong place for picking political fights.

For the sake of fiscal discipline, and a commitment to our soldiers, we must pass this bill without it being held hostage by those who wish to micromanage the commanders in the field or load this bill with non-military pork. As this debate goes forward, I trust that Congress can set aside politics, do our duty for those protecting our freedoms, and cut the pork from this bill.

Due to technical restrictions, Congressman Carter is unfortunately not able to directly answer questions posed on this forum.

One of Congress’ most fundamental duties each year is to ensure that the federal government is properly funded and performing to expectation. Just like any business, this involves an annual budget, priorities and expenditures. This process begins on the first Monday in February when the President submits his annual budget for the coming fiscal year. After submittal, Congress reviews the President’s priorities and amends the budget as deemed necessary in order to properly fund programs while, hopefully, reducing wasteful spending.

This past week, President Bush submitted his Fiscal Year 2008 budget which begins funding the federal government on October 1st, 2007. Although the budget is a sizeable document, funding everything from agriculture to veterans’ affairs, I look forward to working with my colleagues to review the priorities laid therein. As a fiscal conservative, I am ever mindful that, like Central Texas families, some things in the budget are needs, while others are wants. Congress must be vigilant in determining the difference and willing to reducing frivolous spending in an effort to protect our long-term fiscal security.

I am pleased that the President has focused on a plan that will lay the groundwork for a balanced budget by 2012 – without raising new taxes. Pro-growth policies initiated by the President and the former Republican-controlled Congress are responsible for the creation of over 7 million new jobs, boosted federal revenues, and a falling federal deficit. Now is not the time for tax increases which will depress the current progress made and put us back onto the road of fiscal irresponsibility.

Another key element to maintaining a healthy federal budget will be reforming the runaway entitlement system in America. We must take immediate and substantive steps to begin addressing our nation’s largest and least sustainable entitlement programs. As the “Baby Boom” population ages, Social Security, Medicare, and welfare threaten to consume larger and larger portions of the budget. Reforming these programs is essential to ensure that we meet our commitments to beneficiaries. Entitlements currently consume more than half of the budget, and are projected to grow by 6 percent per year – faster than our economy. At this rate, by 2040, these programs will cost as much as the entire government costs now. Congress cannot afford to shy away from the challenge of entitlement reform, but must quickly address this pressing issue.

Another step in the right direction will be for Congress to improve the budget process. Tools that facilitate transparency, accountability, and self-control are vitally important if elected officials wish to have the confidence of those whom they represent. This responsibility ultimately lies with Congress who in the Constitution is granted the “power of the purse.”

In the coming weeks, I look forward to discussing the President’s budget and working to reduce and prioritize the government’s spending. As a member of the House Appropriations Committee, I will continue to look for ways to reduce frivolous spending and governmental waste, while prioritizing those things which produce national and economic security. These priorities should also move us in the direction of fiscal responsibility by forcing Congress to function like a Central Texas family – with a balanced checkbook.