Published: 02-06-09
Congressman McCaul Reaffirms Support for More Stimuli Less Spending
AUSTIN TX – As the $819 billion economic stimulus bill that passed the House now balloons to more than $900 billion in the Senate Congressman Michael McCaul reaffirmed his support for the Republican alternative plan.
“The Senate is making a bad bill even worse” said Rep. McCaul who voted against the original bill. “It’s unfortunate that Democrats continue to ignore pleas from the American people and even President Obama to eliminate wasteful spending and accept proposals that will have an immediate stimulating effect on the economy.”
Based on indiscriminately cutting taxes of families and businesses H.R. 470 which Rep. McCaul has co-sponsored is projected to create 6.2 million American jobs. That is twice the number of jobs as the current stimulus bill at half the cost. According to formulas from President Obama’s own economic team the Republican alternative will create an estimated 490000 jobs in Texas compared to a projected 204000 in the current bill.
Following is a synopsis of the House Republican Economic Recovery Plan:
Immediate Tax Relief for Working Families:
Rather than a refundable credit based on payroll taxes House Republicans propose reducing the lowest individual tax rates from 15 to 10 and from 10 to 5. As a result every taxpaying-family in America will see an immediate increase in their income with an average benefit of $500 in tax relief from the drop in the 10 bracket and $1200 for the drop in the 15 bracket. A married couple filing jointly could save up to $3200 a year in taxes.
Help for America’s Small Businesses:
Small businesses (those employing less than 500 individuals) employ about half of all Americans yet they can be subject to tax rates that siphon away one-third or more of their income. House Republicans propose to allow small business to take a tax deduction equal to 20 of their income. This will immediately free up funds for small businesses to retain and hire new employees.
No Tax Increases to Pay for Spending:
The stimulus proposal pending in Congress includes record levels of government spending that will substantially increase the current deficit. House Republicans are concerned that this level of spending will result in some proposing near-term tax increases on American families. House Republicans are insisting that any stimulus package include a provision precluding any tax increases now or in the future to pay for this new spending. House Republicans believe that any stimulus spending should be paid for by reducing other government spending not raising taxes.
Assistance for the Unemployed:
Incredibly the Federal Government actually imposes income taxes on an individual receiving unemployment benefits. House Republicans propose to make unemployment benefits tax free so that those individuals between jobs can focus on providing for their families. The plan would also extend unemployment benefits from March to December 2009.
Stabilizing Home Values:
The real-estate market is paralyzed as potential buyers wait on the sidelines waiting for prices to fall even further. This is becoming a self-fulfilling prophecy. In order to encourage responsible buyers to enter the market and stabilize prices House Republicans propose a home-buyers credit of $7500 for those buyers who can make a minimum down-payment of 5.
Congressman McCaul remains hopeful that these common sense proposals proven to stimulate both short- and long-term economic growth will be incorporated into the stimulus bill.
