Economy

The United States is facing an urgent financial crisis that threatens our fiscal and economic stability. Our government is currently borrowing about 50 cents for every dollar we spend. Common sense says you don’t pay off borrowed money with borrowed money. Medicare is already paying out more in benefits than it collects in taxes and Social Security is expected to do the same in less than five years. The total unfunded liabilities for the United States are $60.6 trillion, which exceeds the net worth of America. Paying off this liability, would require every American to write a check to the Treasury Department for $198,000.

The “solution” President Obama and the liberal leadership in Congress are pursuing is more spending and higher taxes. They have exploded the national debt to over $13 trillion, setting a record deficit of $1.8 trillion for 2009 – four times larger than the previous high. Never before have so few spent so much in so little time.

Recent analysis by the Heritage Foundation shows that District 7 residents will bear the brunt of the tax increases in President Obama’s budget. Our district ranks 9th out of 435 congressional districts in total projected tax increase in the country. District 7 is projected to be taxed over $779 million more under President Obama’s budget. This is not the only cost to our district. The outstanding public debt of the United States is currently over $13 trillion, and each District 7 resident owes $36,900 as their individual share of the debt.

As a staunch fiscal conservative, I strenuously opposed these epic spending increases regardless of who occupied the Oval Office. I voted against $2.3 trillion under the Bush Administration and against $7 trillion under the Obama Administration. We are a nation in debt and cannot continue writing checks when our bank account is overdrawn.  I am an original cosponsor of the Balanced Budget Amendment, which would amend the Constitution and force the federal government to live within its means – just as American families do.

In addition to the Balanced Budget Amendment, I supported a budget alternative that would cut taxes and reduce spending. It is time to let Americans keep more of what they earn and for the government to spend less. It is time to start trusting and empowering individual Americans instead of the federal government. By taking these steps, our economy will see the growth and prosperity that have defined America for generations.

I have supported the following legislation in the 111th Congress:

•    I became an original cosponsor of Mr. Goodlatte’s Balance Budget Constitutional Amendment, which requires that Congress not spend more than it receives in revenues, requires the President to submit a balanced budget to Congress, and requires a 3/5 majority to increase the debt limit.  A Constitutional amendment will force Congress to eliminate unnecessary and wasteful spending and make the decisions necessary to balance the budget and eliminate the federal deficit.

•    I signed on as an original cosponsor to Congressman Linder’s Fair Tax Act.  This act eliminates all Federal income-related taxes, such as personal and corporate income taxes, the payroll tax, the capital gains tax, the self-employment tax, and the death tax; and replaces them with a transparent 23 percent personal consumption tax on new goods and services.

•    I became a cosponsor of H.R. 205, the Death Tax Repeal Act.  This bill repeals the federal estate and gift taxes.  A Joint Economic Committee (JEC) study found that family-run firms and farms particularly feel the grip of the estate tax, because they are less likely to have the liquid resources needed to meet their estate tax liabilities.  JEC estimates that the death tax has reduced the stock of capital in the economy by about $847 billion.  Douglas Holtz-Eakin, the former Congressional Budget Office director, estimates in a new study that the economy would create roughly 1.3 million more small business jobs with no death tax rather than with President Obama’s planned 45% rate.

•    I signed on as an original cosponsor to Congressman Louie Gohmert’s bill to provide a two-month suspension of employment and income taxes.  This bill would also eliminate Treasury’s remaining bailout authority.  This bill would cost a fraction of the Wall Street bailout and would provide immediate tax relief to American families.  This bill provides a timely economic stimulus for the American people.

•   I cosponsored H.R. 470, the Economic Recovery and Middle-Class Tax Relief Act.  This bill would bring fast-acting tax relief to working families and businesses and that would produce twice as many jobs at about half the cost of liberal majority’s $787 billion stimulus bill.

•    I became an original cosponsor of H.R. 1557, the SAFE commission Act.  This bill creates a national bipartisan, 16-member commission aimed at getting the nation’s long-term fiscal house in order.  Congress would be required to vote up or down on the panel’s proposals to improve our nation’s financial health.

Responses to “Economy”

  1. Dan Fox says:

    I applaud your desire to cut spending. Could we have some details, please? Let’s start with the draft of the Bowles-Simpson Deficit Reduction Plan. The most expensive government programs are Medicare, Social Security and military. What do you propose to do there?

  2. Amy V says:

    Congressman,
    I am disappointed that your website does not mention what you are doing about job creation and extending unemployment benefits. With six qualified applicants for every one job, something has to be done. Unless you plan to find a way to multiply the job offerings sixfold, then you will need to extend the unemployment benefits that are set to expire in November. Taking away people’s lifelines will not improve the economy. It costs money, but its an investment in the future of America, one person at a time.

  3. Arthur Perkins says:

    Rep. Culberson:
    I am writing to implore you and all of your colleagues to resist framing the financial regulation efforts being negotiated and debated in Congress as a Republican Party vs. Democratic Party issue. This is a matter of greed and THEFT. Without negative incentives, the bankers and investment companies will be unrestrained in pursuing the same policies that led to the current, very serious situation. A tough, independent regulatory agency is desperately needed to REGULATE the financial sector. The agency must have tough, unambiguous, and enforcable rules. There is reasonable room for debate on all other partisan issues in this or in any administation and congress. This should not be one of them. Money, plenty of money that was confidently invested in the financial industry is gone. This money was invested by Republican citizens, Democratic citizens, Independents, and any other groups with resources to invest. This money will not come back. PLEASE work with both parties to prevent this from happening again. (and again, and again.) I request that you do not support the creation of the Bureau of Financial Protection as part of the Treasury Department as recently proposed by Sen. C. Dodd.

    Respectfully,

    Arthur Perkins
    Houston, TX

  4. M. Sadiq says:

    Dear Congressman John Culberson,

    I urge you to change your course regarding this matter and stand up for the American people as we know you have a good heart, just bring in some guts. I am very sure that this concern just did not popped up yesterday. The government knew all along when they gave the banks a blank check, charged it to the public, and now it’s time to pay; through drastic tax increases, spending cuts, privatization of state industries and services, dismantling of any protective tariffs and trade regulations, and raising interest rates. The effect that this will have is to rapidly accelerate, both in the speed and volume, the unemployment rate.

    If we continue to follow the current course dictated by the Wall Street and big business, I am very sure that when the crisis is over, our middle classes will have been liquidated of their economic, political and social status. Our economy will have gone through the greatest consolidation of industry and banking in American history leading to a system in which only a few corporations and banks control the economy and its resources; government will have lost that right as is even obvious now when majority of our representatives cannot stand up and protect the American people first. If we did not cut the banks to their sizes now then in near future American people will be left to the mercy of the financial oligarchs.

    The sad thing is even when the whole episode behind the economic recovery or let’s call it corporate recovery is unfolding with all the false hope and promises made to American people when giving away the national wealth to the banks, our representatives still won’t get tough.

    It is very simple we need to increase the government spending and create conditions for American people to live with some dignity, create more businesses, help more entrepreneurs get financial backing, start rebuilding our crumbling infrastructure, invest in government funded new technology programs which will create more small business rather than big business monopoly, provide more subsidiary in critical areas of economy for real improvement etc. and to do all this we need to collect more taxes. The best places to collect more taxes are the fat banks and big business. They are the ones who took our money and now it’s time for pay back, should they have problems doing so, American people would be much better off if they disappear from our national scene. They are the ones who wronged and they need to pay for their mistakes.

    Obviously we are concerned with our financial situation than why are we still borrowing huge money for our overseas wars? I understand it is of importance to our national security. Why can we not put our best and sincere heads together and re define victory along with our other overseas goals within a realistic and available budget that can be really achieved? If the answer is we have no choice but to keep borrowing for the wars then I would say why cut the corner for the home land.

    I would also suggest creating an economic advisory group consisting of prominent and impartial economists for our district from University of Houston or Rice perhaps to provide alternative interpretation of various financial aspects which shall carry more weight than conventional corporate reports.

    Sincerely,

    M. Sadiq

  5. Bob Donnally says:

    The current financial situation in the US and the world is frightening. This current debt started back in the early 80s when we decided to cut taxes but did not cut spending. It has continued through both Republican and Democratic administrations, although Clinton actually reduced the deficit some.

    We are now in a situation where without heavy government spending, the economy and unemployment will be much worse. The arguments for cutting taxes to improve the economy at this point don’t make any sense. This would only further increase debt and do very little to increase demand, which is the major problem.

    Big banks have been bailed out and are now making profits, thanks to the use of our money. It is time to introduce some serious banking reform. Taxpayers have been bilked long enough. If they are really “too big to fail” it’s time to make them smaller. Congressmen need to stand up to the bank lobbies for once.

    Another bank complaint, credit card interest rates should be limited, as they were years ago. If congress cannot provide such a simple protection for the people, of what use are they? There is no valid argument to justify the current situation, only the campaign contributions of the bank lobby.

  6. Dennis Swanson says:

    With one in five americans unemployed I am wondering if any of our leaders are concerned about job creation.

  7. Pat Hartis says:

    It is painful to watch our current governing congress and executive branches dismantle everything that is America. If they continue, blind to the debt they are setting in place in the name of big government, they will delegate America to the status of a third world country. I don’t care about their motives. I don’t care about their desire to control everything with or without the Constitutional power to do what they are doing. What I care about is the next elections. Until they take away our right to vote they are only in power at the discretion of the voters. The American people will not sleep forever.

  8. rick bowden says:

    I disagree with your actions relative to the recent financial crisis. Your approach (ignoring the wrong-doing, ignoring the causes, and criticizing the tax policy) is wrong. You should be punishing those wrong-doers (we all know who they are). You should be enacting responsible regulation (”yes – regulation – more not less”). Not every solution involves “tax cuts”. Stopping wasteful spending, paying as we go (even it more taxes are required) and making sure that the U.S. has jobs (manufacturing, advanced technologies) is the solution, and not allowing businesses to export our jobs so some executive can make an inflated bonus.


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