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For Immediate Release:
June 11, 2004

An Economy on the Rise

by Senator Larry Craig

Birthdays, anniversaries, holidays. They come along just once a year, and we enjoy celebrating them. Whether giving gifts or receiving them, the celebration of annual events is something we all look forward to. Recently, we passed the one-year anniversary of the signing of the Jobs and Growth Tax and Reconciliation Act of 2003. What better gift than the gift of tax relief?

I bet you're all saying, "Spoken like a true Republican." I guess the shoe fits. But I am not the only one. On the day the legislation was signed by President Bush, he said, "By ensuring that Americans have more to spend, to save, and to invest, this legislation is adding fuel to an economic recovery. We have taken aggressive action to strengthen the foundation of our economy so that every American who wants to work will be able to find a job."

Some in Congress have been critical of the President's economic policies, so it's worth taking a look at what has happened to the U.S. economy and American taxpayers since this tax relief was passed last year, to see what the facts show.

Over the course of this year, individuals and families nationwide will benefit, as 111 million tax returns reflect an average tax cut of $1,586. More than 120,000 Idaho couples and single parents will see an increase in their child tax credit, and 25 million small business owners across the country will see relief averaging $3,001. While some deceptively label Bush's tax relief "tax cuts for the rich," the numbers tell a different story. I know working Idahoans certainly don't consider $1,600 to be peanuts, and they definitely don't considers themselves rich.

The tax relief passed by Congress and signed by the President came at a critical time, not just for American families, but for the U.S. economy as well. Because of this tax relief, U.S. economic growth over the last three quarters has been the fastest in nearly 20 years, at a 5.5 percent annual rate. The much-discussed "jobless recovery" has proven to be a myth, as nearly 1 million jobs have been created in the last three months alone, with May's 248,000 jobs making it the 9th consecutive month of gains.

Naysayers are still trying to find the cloud for the silver lining, charging that the new jobs added are low-paying service sector jobs. However, Department of Labor statistics show that real after-tax incomes are up by 10 percent since December 2000. Consumer confidence and the stock market are up over last year.

However, to understand to true magnitude of these gains, it is important to understand the obstacles our nation and our economy have overcome in the last few years. A recession officially began in March 2001, although some analysts say it probably began late in 2000. Rolling blackouts plagued California in the summer of 2001, causing that state's economy billions in losses. Already suffering from the recession, the September 11th attacks practically sent the economy off a cliff.

As a result of the attacks, people simply stopped traveling and stayed home for months. Planes took off nearly empty, hotels were practically unoccupied, restaurants had no patrons. The effects were far-reaching. Accounting scandals undermined the public's confidence in corporate America, and millions of the new "investor class" weathered a stormy market.

For a time, it seemed that the body-blows would not stop. But the President took the lead, Congress followed, and the resulting economic policies that were enacted have brought us to where we are today. We are not at the top of the mountain, that's for sure, but we have come a long way up from the valley floor, and all indicators suggest we are headed in the right direction.

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