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ask.heather@mail.house.gov

In Washington DC
442 Cannon House
Office Building
Washington, DC
20515
202-225-6316 Phone
202-225-4975 Fax
In Albuquerque
20 First Plaza NW
Suite 603
Albuquerque, NM
87102
505-346-6781 Phone
505-346-6723 Fax

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Congresswoman Heather Wilson, First Congressional District of New Mexico


Postcard
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What to do with the Tax Surplus? February 06, 2001
 
Heather recently visited the North Valley Senior Center and spoke about tax relief for working families
Dear Friends,

Since being elected, I`ve preferred bills that make our tax code fairer -- like ending the marriage penalty and the death tax -- rather than across-the-board reductions. Two things have happened recently that have me rethinking what is the best way to reduce the tax surplus coming into the federal government.

First, the economy has slowed markedly. Even without the full impact of rolling blackouts in California (one fifth of the U.S. economy), estimates last week are that economic growth is near zero. Machine tool orders are down and the January employment numbers releaseed last week weren`t great either.

Second, the new estimates of the tax surplus released by the non-partisan Congressional Budget Office in January show that, when we completely set aside all of the surplus for Social Security and Medicare and don`t touch it, government will still take in about $3.1 trillion more than we need to operate over the next decade -- about $1 trillion more than CBO predicted last July. (Write that number down: 31 with eleven zeros after it. That`s a big number!)

Last week Allen Greenspan and the Federal Reserve cut interest rates by another .5% to keep the economy growing and avoid recession. We`ve paid off $354 billion in public debt over the last two years, and we should keep paying off debt.

But what should be our priority for the tax surplus?

It seems to me that the best security for New Mexicans at the moment is to keep the economy growing. That may mean it`s more important to have broad tax relief that will show up in people`s paychecks immediately so that New
Mexicans have more in their pockets to pay their utility bills, get the kids school clothes for next year at the sales, get new tires for the car or buy that appliance that needs replacing.

I`m talking to a lot of folks about what they think is best for New Mexico, and I`d like to have your input too. This week`s "Cast your vote" let`s you tell me the kind of tax relief you think we need now.

Wish you were here,

Heather
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