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Economy
Overview
A national energy crisis, the failures of some financial institutions leading to frozen credit markets and the troubles in the housing and auto industries have all contributed to a downturn in our economy over the last several years. The challenges facing our economy resulted in a drastic increase in American unemployment
Unfortunately, our government’s approach to the economic crisis over the past few years has been to bail out failed businesses and drive massive spending increases under the guise of stimulating our economy. Both have required unprecedented amounts of federal borrowing. Each of these huge expenditures has resulted in questionable benefits at the expense of individuals and businesses that made responsible choices.
We need a better solution. More government is not the answer. In order to foster a growing and healthy economy, Congress must enact policies that will increase our competitiveness, reward entrepreneurship and ingenuity. We need to craft common-sense, pragmatic policies that will quickly foster job creation and allow Americans to keep more of what they earn.
Additionally, Congress needs to continue to investigate the causes of our current situation in order to determine ways to improve regulation of the financial sector and guard against predatory lending and unwise business practices. Congress must conduct aggressive oversight to protect taxpayer money allocated to fund the recent bailouts. To empower effective oversight, Congress will have to change some laws that prohibit appropriate transparency at the Federal Reserve. In pursuit of that goal I am a co-sponsor of the Federal Reserve Transparency Act of 2009 (H.R. 1207).
Crafting the Right Plan for American Prosperity
Americans deserve better leadership out of this Congress and this President. They expect our focus and priorities to be on setting policies that create new and better jobs. Businesses cannot thrive in an economy falsely buoyed by temporary stimulus jobs and taxpayer-funded bailouts.
Congress must remember that more government spending is not in and of itself a solution to a slow economy. Congress should instead recognize that individuals andentrepreneurs have always driven growth in our economy.
Over the last year, Speaker Pelosi and Democrat leadership in Congress have pursued reckless spending and government expansion as their best efforts at reinvigorating our economy. You can see some examples of wasteful spending that does not stimulate our economy here.
The numbers bear out how effective that strategy has been for America and Kentucky: Since the Democrat Majority’s stimulus legislation (the American Recovery and Reinvestment Act, H.R. 1) was signed into law almost one year ago, 3.5 million Americans have lost their jobs and Kentucky has seen over ten percent unemployment since May of 2009.
For Kentuckians struggling to find work, the numbers are more than statistics; they are a painful reality. Job growth should be Congress’ number one priority, but the Majority has pursued job-killing cap and trade legislation as well as health care reform that places even more mandates on employers trying maintain or expand their payroll.
At the very least, Congress should do no harm to an already stressed economy. In order to create jobs, we must first empower the people. Individuals, entrepreneurs and small business owners will drive our economic recovery, create jobs and ultimately reduce the unemployment rate. But, government has to get out of the way.
House Republicans know we must restore confidence, encourage business growth and foster the creation of new jobs in America. The best way to put our nation back on the path to prosperity is by providing immediate tax relief for working families and small businesses, stabilizing energy prices through an all-of-the-above energy plan and offering immediate solutions to get the unemployed working again. You can learn more about these ideas by clicking here, or by visiting the House Republicans' Economic Solutions Center.
Turning America’s Economy Around
Prior to coming to Congress, my professional career was focused on helping small businesses and large corporations produce goods and services more efficiently, as well as helping manufacturers produce higher margins that created more jobs and made businesses leaner and more competitive.
Earlier this year, I joined local business leaders in Northern Kentucky at the Northern Kentucky Chamber of Commerce's Jobs Forum. There I listened to local business owners explain the types of challenges they have encountered in the current economic climate. These issues ranged from credit shortages and the short-term impact of temporary stimulus jobs to concerns about energy prices and the future of the Kentucky coal industry.
Congress can take several steps to make America more competitive in the global economy and encourage job creation here at home.
- Enact an all-of-the-above energy plan:Adopting a new strategic energy policy will help to improve both our national security and our economy. If done correctly, such a policy will effectively use American engineering, ingenuity and entrepreneurship to overcome our energy challenges. We must stop sending billions of dollars, which could be invested here in America, to unstable foreign regimes. An “all of the above” energy strategy will help us attain greater energy independence, reinvigorate our economy and create thousands of new jobs, right here at home. You can read more about the all-of-the-above energy plan by clicking here.
- Lower the cost of health care: Health care reform is necessary, but a trillion-dollar government-takeover of one-sixth of the American economy and millions of Americans’ health care is not the solution we need. My Republican colleagues and I have offered thoughtful and commonsense proposals that would actually reduce the cost of health care for families, businesses, and taxpayers. You can read more about our proposals by clicking here.
You can also read more about how Speaker Pelosi’s bill will affect you by clicking here.
- Improve trade for local businesses: Kentucky’s Fourth District has a significant advanced manufacturing presence. Many of those jobs depend on free, open and fair trade because a significant part of their business involves exporting products. Trade isolation will not save our economy – it is a prescription for economic death. We must continue to open new markets around the world for products and services produced here at home.
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Improving government regulation for small businesses:Small businesses are the engine of job creation in America. Roughly half of all private-sector workers are employed by small businesses. These businesses have created nearly eighty percent of new jobs in recent years.
Congress must focus on ensuring that regulation produces results and not simply more administrative costs that can stifle business growth and job creation.
In an effort to significantly improve the transparency and accountability of the regulatory process, I have introduced H.R. 3765, the REINS Act. The REINS Act requires that Congress must affirmatively approve any new major rule proposed by the executive branch before it can be enforced on the American people.
In order to help small businesses in Kentucky thrive, I have created a Small Business Resource Center on my website that is a portal for information and resources on grants, doing business with the government, helpful State and federal programs, and more. Click here to visit the Small Business Resource Center!
Providing Much-Needed Tax Relief
Washington has a spending problem, not a revenue problem. We cannot tax our way to prosperity; Increasing taxes now will cause more pain for families with tight budgets, force small businesses to cut more employees and further slow economic growth throughout the nation. Instead of rapidly spending borrowed money, Congress should enact policies that will work quickly to foster job creation and allow Americans to keep more of what they earn. It is far more effective to put the money directly in the hands of those who can use it to create long-term stable jobs.
- Extend Important Tax Relief Measures: Several tax relief measures are scheduled to expire at the end of 2010. If they are allowed to expire, taxes will rise across the board. The marriage penalty, which forces some married couples to pay more taxes than they would if they were single, would be reinstated. The Child Tax Credit would be cut by $500, the long-term capital gains tax rate will rise by one-third (to 20% from 15%), and the top tax rate on dividends would nearly triple (to 39.6% from 15%). If these tax increases are allowed to occur, it will discourage investment and slow our economic recovery. Congress must make sure these tax relief measures are extended.
- Permanently repeal the Alternative Minimum Tax (AMT): Last year, Congress enacted a one year patch on the AMT. Without the patch, the AMT would have cost many taxpayers an average of $2,000 in additional taxes this year. Without Congressional action on a permanent solution, as many as 50 million Americans could face the AMT in 2016. The AMT was designed to target a small percentage of wealthy taxpayers; it was never intended to be applied to working class families. I support the elimination of the AMT, once and for all.
- Permanently repeal the Death Tax: This tax is punitive in nature and is a tremendous burden on family farmers and small business owners. Funds that could be used to expand businesses or to hire more employees are instead used to pay accountants and lawyers to navigate the complexities of the Death Tax and ultimately a large bill from the government. According to the Joint Committee on Taxation, the death tax has “broad economic effects.” In fact, one study has found that the death tax is responsible for lowering overall employment by 1.5 million jobs over the previous ten years. I am proud to support legislation that would ensure the Death Tax is permanently abolished. Although the Death Tax is repealed this year, it returns with a vengeance in 2011 without action by Congress.
- Permanently extend the Research and Development Tax Credit:A permanent tax credit for research and development (R&D) creates a direct incentive for creating high paying jobs and developing next generation technology in fields like health care and energy. An R&D tax incentive would encourage companies to increase their research and development spending in the United States, stimulating the American economy and lowering unemployment rates.
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