| |
|
 “Get
an instant energy boost!”
“Restore, revive, and invigorate your life.”
“Get a jumpstart to your morning with this energy bar.”
“Provides instant stabilization to your well-being.”
These slogans from popular energy bars give consumers appealing
guarantees – the snacks will provide the boost of energy consumers need
to make it through their morning, to last through their afternoon
meetings, to stay awake on their late night drive, or give them a boost
any time they need a quick mental stimulation. Of course, most of us
realize that these energy snacks are really just a temporary fix - a
quick boost of energy - to a much larger problem of weariness. We know
that energy bars can get us through a few hours, but we won’t really
solve our exhaustion or sluggish mentality without getting the proper
amount of rest, nutrition, and exercise.
Last week, Congress voted on an economic stimulus plan with the stated
purpose being to reinvigorate our sluggish economy, much like the energy
bar’s promise to reinvigorate our sluggish minds. Consider these quotes
from politicians in Washington about the economic stimulus package:
“It will help boost the country’s slowing economy.”
“We need this package to rejuvenate the foundering economy.”
“This agreement is a practical step to boost the economy.”
“It will provide relief to jump-start the economy.”
Ironically, we are trying to solve our economic challenges with the
economic equivalent of an energy bar, and it only inflates Americans’
expectations of our economy and delays dealing with a long-term problem.
At a minimum, Americans are watching to see that the money they have
invested in their homes, retirement, and savings is as valuable as they
had planned. They are wondering what to expect financially 10 years from
now when their child is leaving for college and they are facing the
tuition bill. Americans are seeking the security of knowing that they
can afford their next gas bill and mortgage payment. College students
are watching to see whether they will enter a welcoming job market when
they graduate. On a global scale, America is watching to see how we will
compete with countries like China, India, and Japan, whose savings rates
are higher than ours and their financial systems are becoming more
advanced. Americans are seeking confidence and stability in our economic
policies.
Unfortunately, Americans have experienced a lot of unrest in these areas
because of recent economic troubles. Even more unfortunate is that as a
response, Washington is throwing temporary tax rebates and some modest
business incentives at them, instead of adopting a fundamental change of
course.
Ultimately, the stimulus package passed by the House last week will
create even more economic strain on our future, at the expense of today.
The federal government cannot just wish new purchasing power into
existence. Since the money used for the economic stimulus was not offset
by equal spending cuts, it must be borrowed, and that means that we will
increase our deficit. The temporary “pump” into our economy carries a
whopping price tag of $146 billion. $31 billion of that amount will
provide “rebates” to individuals who paid no income taxes in 2007. As a
basis of comparison, that $31 billion is more than the annual cost of
funding the entire National Institutes of Health, whose dedication to
disease and medical research saves thousands of lives every year.
Real economic growth comes from generating income and wealth for
American families, and income and wealth come from increasing commerce
and growing jobs. Unfortunately, the stimulus package provides no
incentive to work or to save more. In fact, it discourages the ability
to save by expanding the federal role in housing, making it easier for
some people to get mortgages that they otherwise cannot afford, a
problem that economists say has been a primary source of our current
economic troubles. There were some positive business incentives included
in the stimulus that I do support because they would create jobs and
strengthen the economy. However, the cost of these business provisions
accounts for $45 billion – and we ought to come to these economic
solutions without putting $146 billion on the taxpayer’s credit card.
In a rush to put together a quick fix for the economy, the opportunity
to focus on real economic growth is being disregarded. The American
people want and deserve fundamental change, and instead they’re getting
a temporary boost that comes conveniently during an election year.
Instead of a temporary political stimulus, we must focus on the
following solutions that will lead us to long-term economic
stabilization.
A Plan for Fundamental Economic Change
Reduce Tax Burden on Families
Restoring predictability in our economy means that we need to seek
permanent tax reform that will put more money in the wallets of
hardworking Americans on a regular basis.
- Make tax relief permanent for middle-class married couples, parents
and workers.
- Offset payroll taxes so Americans increase their regular take-home
pay.
- Increase the tax allowance for children to help working families and
single-parent homes make ends meet.
- Repeal the death tax and capital gains tax to encourage long-term
investments.
- Provide more predictability with our tax laws, and avoid the
stop-and-start tax policy that has been so prevalent in recent years.
Encourage Savings
While the economy was growing in the 1990s, household savings fell
dramatically. According to a report by the Congressional Research
Service, since that point household savings has steadily declined and
the proportion of income that households have set aside has been near or
below zero. The U.S. savings rate is now the lowest it has ever been.
- Encourage savings and investing by reducing the capital gains tax.
- Promote financial literacy education to our young generation.
- Protect the value of the dollar so that Americans will feel confident
in investing and saving their money.
Reform Spending
Washington cannot call on Americans to save more without getting its own
spending under control. We have a duty to be good stewards of taxpayers’
dollars, and we must reform our spending.
- Increase transparency in government spending, so Americans know how
their money is being used. Real accountability in Washington will help
control deficit spending.
- Eliminate unneeded and wasteful programs.
- Adopt real earmark reform.
Reject Overregulation and Job-Killing Small Business Taxes
We need to put business back in the hands of America’s entrepreneurs.
- Reduce unnecessary regulations on businesses so we can increase our
global competitiveness.
- Cut small business income taxes to encourage the creation of more
jobs.
- Reduce the cost of health insurance to individuals and employers by
creating more options, like health savings accounts and associated
health plans.
- Allow for faster expensing of all new business equipment to encourage
productivity and job growth.
- Allow for accelerated depreciation to encourage investment.
Fundamental economic change is possible, and permanent changes are
necessary if we want a growing, competitive, and healthy economy. We
should not accept a temporary fix at the expense of permanent change. To
follow my actions on this issue in Congress, I encourage you to visit
http://forbes.house.gov/issues/taxes.htm.
DID YOU KNOW?
$31.2 billion is the amount of money under the economic stimulus package
that is being given to individuals who paid no income taxes for 2007. So
what does $30 billion dollars equate to?
- 5 Departments of Commerce ($6.4 billion)
- The entire budget of the Department of State ($30.2 billion)
- The entire budget of the Department of Homeland Security, which is
responsible for border fencing ($30.7 billion)
- Nearly two times the entire NASA budget ($16.3 billion)
- Nearly the entire budget of the
National Institutes of Health ($28 billion)
Source: 2006 Actual Outlays, Budget of the U.S. Government
Congressman Forbes' Web site Wins Congressional Award
 Congressman
Forbes' Congressional Web site was honored by
the Congressional Management Foundation with a “Gold Award” in their
2007 Gold Mouse Report: Lessons from the Best Web Sites on Capitol Hill.
Congressman Forbes’ Web site was one of 34 gold medal winners out of 618
sites evaluated in the House and Senate.
“My staff and I have worked hard to ensure that constituents have the
information they need from my office at their fingertips. From my
stance on important issues to press releases, tour requests, and getting
help with federal agencies, our Web site allows constituents in the
Fourth District access anytime day or night to the information they
need,” said Forbes. “With more and more people relying on the Web as
their primary source of information, it is increasingly important to
provide a top notch Web site, especially for younger constituents. Over
the coming weeks, we’ll continue to enhance our Web site with a blog,
video, and other multimedia content to allow users of all ages to learn
about their Congressman.”
The 2007 Gold Mouse Report awarded the “Gold Award” to Congressman
Forbes’ Web site for its ease of use, the ability to access information
on the site, and its ability to serve constituent needs. The
Congressional Management Foundation (CMF) is a non-profit, non-partisan
management consulting and research organization in Washington, D.C. The
2007 Gold Mouse Report and Awards are part of the “Connecting to
Congress” research project, funded by a grant from the National Science
Foundation. Web sites were graded on how well they incorporate five
basic building blocks which extensive research identified as critical
for effectiveness: audience, content, usability, interactivity, and
innovation.
“One of the key reasons for the awards is to highlight best practices so
offices can improve their sites by learning from those doing a good
job,” said Beverly Bell, CMF’s Executive Director. “Web sites like
Congressman Forbes provide a template for other congressional offices to
follow. Also, Congressman Forbes’ Web site shows that he understands
the value of creating a virtual office to reach specific audiences who
have come to expect having their needs met online.”
A full copy of the report, the 2007 Gold Mouse Report: Lessons from
the Best Web Sites on Capitol Hill, is available on the
Congressional Management Foundation’s Web site at
www.cmfweb.org. To visit Congressman Forbes’ Web site, go to
forbes.house.gov. |
