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Capitol Comment
by Senator Kay Bailey Hutchison
Texans Sound Off on the Economy and Health Care
March 27, 2009
Listening is often the most important part of a conversation. That is why in my weekly column at the beginning of this year, as Americans welcomed a new President and a new Congress, I invited Texans to share their opinions with me on the most critical issues facing our state and nation. Thousands of Texans responded with their thoughts and concerns on issues such as the economy, health care, education and transportation. As their responses demonstrate, Texans are as committed as I am to overcome the challenges that currently face us.
People across Texas pointed to the federal government’s response to the recession and rising health care costs as the two most alarming issues confronting our nation. For this reason, I’d like to focus on these two topics in this column, before exploring respondents’ other legislative priorities in the weeks ahead.
When asked how the government should react to our current economic challenges, approximately 25 percent believe the government should prioritize infrastructure spending. Another 25 percent said the government should pay down the national debt. But over 50 percent of survey respondents said tax cuts should be the key component in efforts to revitalize the economy.
Texans have common sense, and they know taxing, borrowing, and spending won’t fix our economy; this approach will only prolong and worsen the recession. The best way to stimulate economic growth is to lower taxes for small businesses and families.
Earlier this year, I introduced legislation that would prevent future tax increases on Texas families by allowing them to permanently deduct state and local sales taxes. As a matter of principle, people shouldn’t have to pay taxes on their taxes. I also introduced legislation to make the marriage penalty relief permanent. Unless Congress takes action, a significant number of married couples will again pay more in taxes starting in 2011. Given the challenges many families are facing to make ends meet, we must make sure we do not backtrack on this important form of tax relief.
Although Texans favor tax cuts, the majority in Congress want to spend their way out of the recession. In March, the Senate considered the enormous Omnibus Appropriations Bill, which spends over 8 percent more than Congress approved for Fiscal Year 2008. I introduced an amendment to the legislation that would have shown the American people that Congress is ready to exert fiscal responsibility. My amendment would have reduced the size of the bill to the overall spending level approved in 2008, with adjustments made for inflation. Unfortunately, the Senate was unwilling to make these modest cuts and do away with billions of dollars of wasteful, duplicative spending. Therefore, I felt it necessary and responsible to oppose the final bill.
The survey results also indicate that Texans are very anxious about rising medical costs and health insurance premiums. Almost 40 percent said limited or no access to health insurance and difficulty understanding insurance coverage plans pose the most significant obstacles to medical care. But nearly 60 percent chose the high cost of insurance and health care services as the primary barrier to care.
To address these problems, Congress must champion small business health plans. Between 2000 and 2006, the median rise in income fell far behind the 80 percent increase in family health care premiums for Texas subscribers to employer-based insurance. Because of these costs, fewer employers are offering medical coverage. The Small Business Health Plans Act makes it easier for small businesses to purchase affordable health insurance through their trade organizations.
I am also a co-sponsor of a new bill that will allow all Americans to deduct 100 percent of their health insurance premiums as long as they purchase qualified private health insurance. This change to the tax code will benefit individuals who purchase coverage from the individual market. It will also allow benefits to be carried from job to job. Both bills will lower costs for families and small businesses, and they will increase the number of Americans with health insurance.
Moving forward, I will continue to work to reduce the tax burden on American families and small businesses and address the rising cost of health care. These issues are far too important to be neglected by Congress. But, as so many Texans remarked in their survey responses, the solution to our growing challenges is not to give more power to the government; it’s to give more power to the American people.
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