COLUMNS

We Can Do More for the Economy
By Senator John Sununu
February 17, 2008

In New Hampshire and across America, we see the toll of a slowing economy. Home prices are falling, mortgage defaults are on the rise, and credit is tight – not just for workers and their families, but for businesses, both large and small.

On Capitol Hill, Congress saw the need, and for a change, moved quickly to pass a bipartisan economic growth bill that was signed into law last week. The tax rebates for families, seniors, and disabled veterans, and incentives for small business will soon be put to work. But, this only marks the beginning of the road to get our economy back on track.

I’m pleased that this was a bipartisan effort, but it very nearly came apart. After first passing the House with over 380 votes, the Senate began considering dozens of new amendments to the bill. Some, like the effort to cover more seniors and disabled veterans, were real improvements. But, if all 100 Senators added something to the bill, we would never get the job done. Funding for heating assistance - a program I have always supported - was even slipped in without a vote to buy more support. That kind of back room dealing is just plain wrong.

After $40 billion in add-ons, including special benefits for West Virginia coal companies, Senator Gregg and I joined our colleagues to say enough is enough. The Senate got back to the bipartisan bill, made a few key changes and passed the legislation with over 80 votes in favor. The bill is not perfect, but by acting quickly, it will make the greatest possible difference for families, seniors, disabled veterans, and small businesses.

Beginning in May, most taxpayers will receive rebates of $600 for individuals and $1,200 for couples. Workers who earned at least $3,000, seniors, and disabled veterans who received Social Security payments of at least $3,000 will get a $300 rebate as well.

The rebates will help many families make ends meet and be put to work in the New Hampshire economy. Equally important, new incentives for small businesses to buy new equipment and expand their plants will lead to new jobs in the Granite State.

As we look ahead, however, there is more work to do in our fight to strengthen the economy. Congress must take action to address the mortgage and housing crisis. Federal housing legislation, which the Senate passed with my support, will make it easier for many low-income and first-time homebuyers to secure a mortgage or to refinance under more affordable terms
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We also need to make today’s lower taxes on families, entrepreneurs, and small business permanent. The rates were first lowered in 2001. Raising taxes – as the Democrat leaders in Congress have proposed – would be a disaster in a weakened economy. And, Congress needs to reduce the number of workers without healthcare insurance, by helping small businesses to negotiate lower rates, reducing the cost of frivolous lawsuits, and giving families full deductibility for all their health care costs.

Even with these steps, we must remember that every community faces different challenges. In Groveton, the Wausau Paper Mill shut down last December putting 300 people out of work. Today, trade assistance that I helped secure is being put to use to help workers retrain, find new jobs, and continue their health care coverage. Regional planning grants, which Senator Gregg and I announced earlier this month, will help the North Country map out a long-term strategy for economic growth.

And Northern New Hampshire will continue to benefit from new investment in broadband infrastructure for which I have secured federal support and will continue to champion.

All of these steps take us in the right direction, but we still have great obstacles to overcome: the budget deficit is too high – not because taxes are too low, but because the government spends too much; partisan attacks have prevented us from modernizing our Social Security system for future generations; and our healthcare system needs reform that will reduce the number of families without insurance, reduce costs, and put buying power back into the hands of families.

In both the House and Senate, I have never shied away from tackling these important long-term challenges, but when we debate the economy, I keep one principle foremost in my mind: politicians don’t create jobs, entrepreneurs and small business are the engine that drives our economy. I work every day to create an environment that rewards those who work hard, make investments, and create new jobs, and will continue to put my trust in the people of New Hampshire.

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