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JEC NEWS PAGE Archives: 2008 | 2007| 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997
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Madam Chairman, thank you for this opportunity to speak before the Joint Economic Committee. Since its creation by the Employment Act of 1946, the JEC has been the premier congressional forum to discuss economic policy, and as a former staff member of the committee I am honored to participate in this hearing.
Download Testimony in PDF format
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10/29/08
Press Release
#110-50
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WASHINGTON, D.C. – The share of total federal income taxes paid by the top 1 percent of tax filers increased to 39.89 percent in 2006, while the tax share of the top 5 percent climbed to 60.14 percent. The income tax share of the top half rose to 97.01 percent, according to Internal Revenue Service (IRS) data. The tax shares are the highest on record for these groups based on comparable IRS data going back to 1986.
Download Press Release #110-50 in PDF format
Download IRS Data in PDF format
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10/27/08
Press Release
#110-49
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WASHINGTON, D.C. – Congressional Budget Office (CBO) show that the total effective tax rate of the middle fifth of households declined after 2001 to its lowest levels since at least 1979, Congressman Jim Saxton, ranking member of the Joint Economic Committee, said today. Under the 2001 and 2003 tax relief legislation, the income tax as a share of income for the middle fifth also has fallen to its lowest levels in decades.
Download Press Release #110-49 in PDF format
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10/23/08
Press Release
#110-48
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WASHINGTON, D.C. – According to a key Census Bureau measure, income inequality has been unchanged since 2000. The Census Bureau recently confirmed that no statistically significant change in the inequality measure occurred between 2000 and 2007, the last year for which data are available. The measure referred to here is known as the Gini coefficient, a standard gauge of income inequality published by the Census Bureau and widely used by economists and other researchers.
Download Press Release #110-48 in PDF format
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s e p t e m b e r 2 0 0 8 |
09/24/08
Press Release
#110-47
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Download Press Release #110-47 in PDF format
Download Testimony of Federal Reserve Chairman Ben Bernanke
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09/09/08
Economic Conditions
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The unemployment rate rose to 6.1% in August, from 5.7% in July and 5.5% in May and June. Payroll employment declined for the 8th consecutive month in August, by 84,000 jobs. Despite weakness in labor markets, revised data on the inflation-adjusted (real) gross domestic product (GDP) show that growth accelerated in the 2nd quarter. Annualized 2nd-quarter GDP growth was 3.3%, up from 0.9% in the 1st quarter and an annualized 0.2% decline in the 4th quarter of 2007. Growth in the 2nd quarter may have benefited from stimulus-payment effects on consumer spending, but was unambiguously boosted by international trade: net exports contributed 3.1 percentage points to overall 2nd-quarter growth. Residential investment declines continued to weigh on growth. In light of the continued adjustments in the housing sector and financial markets, Treasury placed mortgage giants Fannie Mae and Freddie Mac in conservatorship, giving management control to their regulator, the Federal Housing Finance Agency (FHFA).
Download Report in PDF format
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08/01/08
Economic Conditions
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The unemployment rate rose to 5.7%, in July, up from 5.5% in May and June and up from a near-term low of 4.4% in March of 2007. Payroll employment declined for the seventh consecutive month in July (by 51,000 jobs) and revised data on the inflation-adjusted (real) gross domestic product (GDP) show that real GDP declined in the 4th quarter of 2007, raising concerns about a recession. Perhaps buoyed by stimulus-payment effects on consumer spending, GDP growth was 1.9% in the 2nd quarter, up from 0.9% growth in the 1st quarter. Private forecasters see positive, though sluggish, growth throughout this year and a return toward more trend-like growth of close to 3.0% by the end of 2009. In light of rising risks of higher inflation, the Fed ended its recent campaign of cutting short-term interest rates at its policymaking meeting in late June, keeping its target overnight interest rate at 2.00%. Housing market adjustments continue.
Download Report in PDF format
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07/23/08
Press Release
#110-46
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It is a pleasure to join in welcoming the panel of witnesses before us today. We are all concerned about the increases in the cost of living that threaten to erode American living standards.
As I talk to my constituents in New Jersey, the number one concern on their minds is the high cost of oil and gasoline. This year, the oil price has risen about 40 percent so far, with further price increases a distinct possibility. These higher energy costs leave families with less money to cover other expenses, such as food. Of course, rising food prices also reflect higher costs for fertilizer, transportation, packaging, and the impact of our ethanol tariff, among other things. As a first step we should repeal the ethanol tariff, and also seek to produce more energy here in the United States.
Download Press Release #110-46 in PDF format
Download Testimony of David Kreutzer, Senior Policy Analyst for Energy Economics and Climate Change for The Heritage Foundation
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07/21/08
Press Release
#110-45
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WASHINGTON, D.C. – The share of total federal income taxes paid by the top 1 percent of tax filers increased to 39.89 percent in 2006, while the tax share of the top 5 percent climbed to 60.14 percent. The income tax share of the top half rose to 97.01 percent, according to recent Internal Revenue Service (IRS) data. The tax shares are the highest on record for these groups based on comparable IRS data going back to 1986.
Download Press Release #110-45 in PDF format
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07/16/08
JEC Study &
Press Release
#110-44
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WASHINGTON, D.C. -- The OPEC oil cartel’s attempt to blame high oil prices on the lower foreign exchange value of the dollar is refuted in a new study released today by Congressman Jim Saxton, ranking Republican member of the Joint Economic Committee (JEC). The new staff study, The Dollar and Oil, analyzes a number of factors contributing to high oil prices, including the cartel’s supply restrictions and inadequate investments made by members of OPEC. As late as 2004, OPEC maintained a price target range of $22 to $28 per barrel. Despite sharply higher world demand and continual price pressures since, the cartel has continued to restrict its oil production even as prices surged well over $120 per barrel.
Download Press Release #110-44 in PDF format
Download Study in PDF Format
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06/18/08
Economic Conditions
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The unemployment rate jumped to 5.5% in May, from 5.0% in April, and payroll employment declined for the fifth consecutive month, raising concerns that the economy has slipped into a recession. However, despite a significant drag from continued adjustments in housing markets, growth in the inflation-adjusted (real) gross domestic product (GDP) was 0.9% in the 1st quarter, up from 0.6% in the 4th quarter of 2007. Moreover, private forecasters see positive, though sluggish, growth throughout this year and a return to more trend-like growth of around 3.0% by the end of 2009.
Download Report in PDF format
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05/01/08
Press Release
# 110-42
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WASHINGTON, D.C. -- It is a pleasure to join in welcoming the panel of witnesses before us today. In recent months, a rise in commodity prices worldwide has led to increases in the prices of food in the U.S., as well as in many other nations.
We all are concerned about the impact of food prices on the American family. The global food crisis has led to outbreaks of food riots and potential famine in other countries, which is disturbing as well. The global food crisis has several causes, according to objective analysts.
One factor is higher demand for food from China, India, and other countries undergoing rapid economic development. Another factor is drought or dry conditions in Australia and other grain-exporting nations. An additional factor has been export tariffs on food imposed by several countries. Since many farm commodities are traded globally, the effects of these international factors on U.S. food prices should not be neglected.
Download Press Release #110-42 in PDF format
Download Hearing Testimony of USDA Chief Economist Dr. Joseph Glauber before the JEC
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04/23/08
Press Release
# 110-41
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WASHINGTON, D.C. -- Mutual fund shareholders’ taxes on long-term capital gain distributions increased to $16.7 billion in tax year 2007, according to a new study by respected research firm Lipper Inc. As the Lipper study notes, “Considering most mutual fund investors reinvest their distributions back into the funds, that is a large price to pay for a buy-and-hold strategy!!!” The study, Taxes in the Mutual Fund Industry—2008, estimates that mutual fund shareholders’ taxable and nontaxable long-term capital gains increased from $233.8 billion in 2006 to $334.0 billion in 2007.
Download Press Release #110-41 in PDF format
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04/15/08
Press Release
# 110-40
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WASHINGTON, D.C. -- The prospect of a huge future tax increase will undermine economic decisions made in today’s fragile economic environment as well as in coming years, Congressman Jim Saxton, ranking Republican member of the Joint Economic Committee said today. The evidence shows that large tax increases, as embodied in the Congressional budget resolutions, will severely damage the economy.
Download Press Release #110-40 in PDF format
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04/04/08
Press Release
# 110-39
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WASHINGTON, D.C. - Congress should not react to disappointing labor market figures and other economic data by enacting policies reminiscent of the Hoover Administration, Congressman Jim Saxton, ranking member of the Joint Economic Committee (JEC) said today. This morning, the Labor Department released data showing no statistically meaningful change in payroll employment in March and an increase of the unemployment rate to 5.1 percent. Recent weak economic data have led some to compare current economic policies to those of the Hoover Administration, without apparently knowing what the Hoover Administration’s policies actually were.
Download Press Release #110-39 in PDF format
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03/13/08
Press Release
# 110-38
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WASHINGTON, D.C. - The share of federal income taxes paid by the top 1 percent of households ranked by income increased from 36.5 percent in 2000 to 38.8 percent in 2005, recent Congressional Budget Office (CBO) data show. Their share of total federal taxes increased from 25.5 percent in 2000 to 27.6 percent in 2005, the last year for which data are available.
Download Press Release #110-38 in PDF format
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02/29/08
Press Release
# 110-37
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WASHINGTON, D.C. - A comprehensive measure of median after-tax household income increased to $55,900 in 2005, reflecting a gain of 5.3 percent since 2000 and 26.8 percent since 1980, according to new Congressional Budget Office (CBO) data released today by Congressman Jim Saxton, ranking member of the Joint Economic Committee. The data extend from 1979 to 2005, the most recent year for which data are available, and are adjusted for inflation.
Download Press Release #110-37 in PDF format
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02/28/08
Press Release
# 110-36
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WASHINGTON, D.C. – The Iraq War obviously has many dimensions including foreign policy, defense policy, and terrorism policy. While debate about past policies in Iraq will continue, the most important question facing policymakers is: What should U.S. policy in Iraq be now and in the future? Since the implementation of the surge strategy in Iraq, the military situation has improved dramatically, as noted by a variety of independent experts from the Brookings Institution to the American Enterprise Institute, and publications such as the Washington Post. A recent Washington Post editorial urged critics of the war to take the success of the surge into account in setting future policy.
However, another attempt to force a hasty retreat from Iraq is now underway, following the many failures earlier in this Congress. Now that the surge is proving successful, a quick exit from Iraq would be especially costly. The virtually immediate withdrawal advocated by some politicians is not militarily feasible, but even a premature withdrawal could produce immense costs.
Download Press Release #110-36 in PDF format
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02/21/08
Press Release
# 110-35
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WASHINGTON, D.C. – Recently released Congressional Budget Office (CBO) data show that the total effective federal tax rate of the middle fifth of households declined after 2001 to its lowest levels since at least 1979, Congressman Jim Saxton, ranking member of the Joint Economic Committee, said today. Under the 2001 and 2003 tax relief legislation, the income tax as a share of income for the middle fifth also has fallen to its lowest levels in decades.
Download Press Release #110-35 in PDF format
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02/19/08
Research Report
# 110-21
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Since 2000, sovereign wealth funds (SWFs) in emerging countries have become major investors in the United States and other developed countries that are members of the Organization for Economic Cooperation and Development (OECD). Since September 2007, SWFs invested at least $62 billion in OECD-country banks and other financial firms, whose capital had been diminished by losses related to the subprime mortgage loan crisis.
Download Research Report #110-21 in PDF format
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02/05/08
Economic Conditions
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The inflation-adjusted (real) GDP increased at a sluggish 0.6% annualized rate in the 4th quarter of last year. Payroll employment declined in January, the first month with a decline since August 2003. Financial markets remain under stress, which has led to tightening of credit for some businesses and households. With that backdrop, the Federal Reserve cut its target for overnight interest rates by 50 basis points at its scheduled monetary policymaking meeting on January 30, following a more aggressive 75-basis-point inter-meeting cut. Housing market adjustments continue, including reductions in home sales and builder activities along with increased delinquencies and foreclosures on mortgages.
Download Report in PDF format
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02/01/08
Research Report
# 110-20
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Among the most popular monthly labor measures, the unemployment rate is the most useful as an indicator of recession, whereas two top measures of employment – payroll job growth and CPS employment growth – have little value. Another data series is even more valuable in that respect – claims for unemployment insurance (UI).
Download Research Report #110-20 in PDF format
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02/01/08
Research Report
# 110-19
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OPEC feels in control of the oil market right now. It sees no compelling reason to increase supply and lower the oil price at this time to address the economic slowdown, because (1) a recession neither is certain nor believed to impair world oil demand very much, and (2) it wants to avoid increasing supply just as demand declines, and a seasonal decline is approaching in the second quarter.
Download Research Report #110-19 in PDF format
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01/30/08
Press Release
# 110-34
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WASHINGTON, D.C. – The Federal Reserve’s action today to cut interest rates is needed to bolster the prospects of continued economic growth, Congressman Jim Saxton, ranking member of the Joint Economic Committee, said in a statement. This afternoon the Fed’s policymaking committee reduced the fed funds rate by half a percentage point to 3.0 percent. This action follows the Fed’s three-quarters of a percentage point inter-meeting reduction of the fed funds rate last week.
Download Press Release #110-34 in PDF format
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01/24/08
Research Report
# 110-18
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Tax policy should work with monetary policy to prevent or cushion the adverse effects of a recession on the U.S. economy. Dollar-for-dollar, one of the most cost-effective ways to stimulate economic growth through tax policy would be to accelerate the depreciation deductions for business investment.
Download Research Report #110-18 in PDF format
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01/16/08
Press Release
#110-33
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WASHINGTON, D.C. – I am pleased to join in welcoming the witnesses appearing before us today. The recent slowdown in the economy is a serious concern to the public and to policymakers alike.
According to standard measures of performance such as economic growth and the unemployment rate, the U.S. economy appeared to be doing quite well through the third quarter of 2007. However, more recent data indicate that the pace of economic growth slowed sharply in the final quarter of the year
Download Press Release #110-33 in PDF format
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12/20/07
Research Report
# 110-17
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WASHINGTON, D.C. – The explanation of the high oil price is largely a matter of OPEC’s constrained response to increases in Asian oil demand, but not entirely. It is also a matter of the reactions to high oil prices around the world.
Download Research Report #110-17 in PDF format
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12/18/07
Press Release
# 110-32
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WASHINGTON, D.C. –New income data show that the income growth rate of the top 1 percent of households between 2000 and 2005 slowed relative to that of the 1990s. Between 2000 and 2005, the average pretax income of the top 1 percent increased 6.7 percent, compared to 38.1 percent for the 1992-1997 period, covering the first five years of the previous administration. Between 1992 and 2000, the average income of the top 1 percent soared by 84.5 percent (all average income data measured in inflation-adjusted 2005 dollars). The new data were released by the Congressional Budget Office (CBO) for the years 1979 through 2005
Download Press Release #110-32 in PDF format
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12/11/07
Press Release
# 110-31
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WASHINGTON, D.C. – The Federal Reserve’s decision to reduce the fed funds rate by 25 basis points to 4.25 percent will reduce the spread between short- and long-term interest rates and improve financial conditions, Joint Economic Committee ranking member Jim Saxton said today. Currently the fed funds rate is above the 10-year Treasury rate, suggesting relative tightness in monetary policy. When short-term interest rates have persistently exceeded long-term rates in the past, the resulting inversion has often been associated with economic slowdowns and recessions.
Download Press Release #110-31 in PDF format
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12/05/07
Press Release
# 110-30
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WASHINGTON, D.C. – Despite strong economic growth in recent quarters, the downside risks to the economic outlook are growing, a situation aggravated by plans for a variety of tax increases. This morning, Republican Leader John Boehner and other Republican leaders issued a new report highlighting the danger tax increases would pose to the economy.
Download Press Release #110-30 in PDF format
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11/16/07
Research Report
#110-16
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Low gas prices have not vanished completely. On the international market, oil and gasoline prices have been surging. The well-worn explanation is that increasing oil consumption pushes against a strained supply chain, causing the price to rise. But there are domestic markets where oil consumption has accelerated and petroleum prices have not risen or not risen significantly; indeed the prices are reminiscent of those in the U.S. 35 years ago.
Download Research Report #110-16 in PDF format
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WASHINGTON, D.C. – A partisan report issued by the Democratic leadership yesterday contained numerous multibillion dollar factual errors and has not yet been retracted. This failure to publicly acknowledge the obvious errors continues despite the fact that copies of the flawed Democratic Joint Economic Committee (JEC) report, entitled War At Any Price?, were widely circulated to the press. However, a number of these errors have been quietly corrected in the web version of the report on the Democrats’ JEC web site without clearly warning the press and public that the copies of the report already widely distributed contain these mistakes. As ranking members Congressman Jim Saxton and Senator Sam Brownback pointed out yesterday, the numerous factual errors demonstrate that the Democrats’ report was not fact checked and reflect poor quality control procedures.
Download Report in PDF format
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The report on the costs of military operations in Iraq and Afghanistan issued this morning by Democrats on the Joint Economic Committee and Democratic leaders of the House and Senate is another thinly veiled exercise in political hyperbole masquerading as academic research. The report contains a number of factual errors indicating poor quality control, is inconsistent with various estimates of the Congressional Budget Office (CBO), and makes speculative assertions that far exceed cost estimates of other analysts. The report, War at Any Price?, purports to calculate the total costs of the wars in Afghanistan and Iraq. The Democrats’ report was released without any notice to or consultation with Republican members or staff of the Joint Economic Committee (JEC).
Download Report in PDF format
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11/08/07
Press Release
# 110-29
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WASHINGTON, D.C. – Chairman Bernanke, I am pleased to join in welcoming you once again to the Joint Economic Committee and appreciate your testimony on the economic outlook.
According to standard measures of performance such as economic growth and the unemployment rate, the U.S. economy appears to be doing well. Real economic growth was 3.9% in the third quarter, while the unemployment rate remained at a relatively low 4.7 percent rate in October. Exports and consumer spending continued to advance, reflecting the resilience of the U.S. economy.
Download Press Release #110-29 in PDF format
Download Chairman Bernanke's Statement
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11/07/07
Economic Conditions
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The inflation-adjusted (real) gross domestic product (GDP) increased at a robust 3.9% annualized
rate in the 3rd quarter. Employment also continues to expand, with 166,000 new jobs added to
payrolls in October.
Download Report in PDF format
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11/02/07
Press Release
# 110-28
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WASHINGTON, D.C. – The 166,000 increase in nonfarm payroll employment in October reflects the great resilience of the U.S. economy, Congressman Jim Saxton, ranking member of the Joint Economic Committee, said in a statement today. This morning the Bureau of Labor Statistics (BLS) released the new data on October payroll employment, as well as household data showing the unemployment rate steady at a relatively low 4.7 percent.
Download Press Release #110-28 in PDF format
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11/01//07
Research Report
# 110-15
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Federal policymakers have recently floated a number of proposals to levy new taxes or to increase existing taxes. These include:
- higher individual income tax rates,
- higher tax rates on capital gains and dividends,
- an income tax surcharge on upper income households,
- removal of the earnings cap on payroll taxes for OASDI benefits (i.e., Social Security pensions),
- eliminating the tax treatment of carried interests as capital gains,
- higher motor vehicle fuel taxes, and
- a new tax on the carbon content of energy.
However, these tax proposals are not paired with significant spending reductions. Instead, many are combined with plans for new spending. It is doubtful whether these proposals should be considered as deficit reduction measures
Download Research Report #110-15 in PDF format
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10/31/07
Press Release
# 110-27
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WASHINGTON, D.C. – The Federal Reserve’s action today to reduce the federal funds rate by 25 basis points will facilitate continued economic growth in 2007 and 2008, Congressman Jim Saxton, ranking member of the Joint Economic Committee, said today in a statement. The Fed’s action comes on the same day as the release of data showing that the economy grew at a 3.9 percent rate in the third quarter, faster than generally expected.
Download Press Release #110-27 in PDF format
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10/25/07
Press Release
# 110-26
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WASHINGTON, D.C. – Recently released data showing the income share of the top 1 percent of tax filers at a relatively high level in 2005 says little about current trends. This is the case because this share was at about the same level in 2000, after a very large increase during the 1990s. In 2005, the income share of the top 1 percent was 21.20 percent of total adjusted gross income (AGI), not much higher than its level of 20.81 percent in 2000. This share fell and recovered in the intervening years largely due to stock market fluctuations.
Download Press Release #110-26 in PDF format
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10/22//07
Research Report
# 110-14
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This report examines the recent controversy about the taxation of the carried interests of general partners in hedge funds and private equity funds.
Some policymakers have contended that the general partners in hedge funds and private equity funds are unfairly using certain provisions of the federal tax code and related Internal Revenue Service (IRS) regulations and interpretations to defer recognition of and lower the effective tax rate on the compensation paid to general partners from these funds. This occurs because some of the compensation comes from long-term capital gains.
However, these carried interest tax provisions encourage entrepreneurship by facilitating the pooling of capital and highly skilled labor in partnerships. Any tax code change designed to repeal these tax provisions may inadvertently damage small business formation, hamper the restructuring of ailing corporations, and slow economic growth.
Download Research Report #110-14 in PDF format
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10/17//07
Research Report
# 110-13
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The People’s Republic of China (PRC) is enjoying rapid economic growth. Real GDP grew at an annualized rate of 11.5 percent during the first half of 2007. Yet the PRC faces significant challenges that it must overcome to sustain long-term economic growth. These include:
- Unbalanced growth
- Corruption
- Weak financial services sector
- Severe environmental degradation
- Stress on the international economy
Download Research Report #110-13 in PDF format
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10/16/07
Press Release
# 110-25
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WASHINGTON, D.C. –The oil cartel should remove its production ceilings immediately in the face of sky high oil prices, Congressman Jim Saxton, ranking member of the Joint Economic Committee (JEC) said today. Statements from members of the Organization of Oil Exporting Countries (OPEC) reported today indicate that the oil cartel has no intent of increasing oil production despite crude oil prices nearing $88 per barrel and continued production restrictions by OPEC.
Download Press Release #110-25 in PDF format
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10/15/07
Press Release
# 110-24
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WASHINGTON, D.C. – The share of total federal income taxes paid by the top one percent of tax filers increased to 39.38 percent in 2005, while the tax share of the top 5 percent climbed to 59.67 percent. The income tax share of the top half rose to 96.93 percent, according to recent Internal Revenue Service (IRS) data. The tax shares are the highest on record for these groups in comparable IRS data going back to 1986.
Download Press Release #110-24 in PDF format
Download IRS Data in PDF format
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10/05/07
Press
Release
# 110-23
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WASHINGTON, D.C. – Payroll job gains of 110,000 in September and a revised 89,000 increase in August mark the longest consecutive employment expansion on record. Today, the Bureau of Labor Statistics (BLS) also released data showing a 4.1 percent increase in average weekly earnings since September 2006.
Download Press Release # 110-23 in PDF format
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s e p t e m b e r 2 0 0 7 |
9/17/07
Press
Release
#110-22
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WASHINGTON, D.C. – The Federal Reserve’s Open Market Committee should reduce short-term interest rates by at least one quarter of a percentage point when it meets tomorrow, Congressman Jim Saxton, ranking member of the Joint Economic Committee, said today.
Download Press Release #110-22 in PDF format
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9/12/07
Press
Release
#110-21
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WASHINGTON, D.C. – According to a key Census Bureau measure, income inequality was essentially unchanged between 2001 and 2006. In response to a request by the Republican staff of the Joint Economic Committee, a statistical test performed by the Census Bureau earlier this week confirms that no statistically significant change in the inequality measure occurred between 2001 and 2006.
Download Press Release #110-21 in PDF format
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9/13/07
Research
Report
#110-11
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After credit market participants discovered that subprime residential mortgage collateralized debt obligations (CDOs) were riskier than previously thought, fears about default risk spread, and the value of these CDOs fell
Download Research Report#110-11 in PDF format
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9/12/07
Economic Conditions
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Housing market adjustments have included reductions in home sales and builder activities along with increased delinquencies and foreclosures on mortgages. Those delinquencies, and related losses on some mortgage-backed securities, led to a systemic liquidity event in early August, with borrowers facing increased difficulties obtaining funds.
Download Report in PDF format
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9/10/07
Research
Report
#110-10
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OPEC’s public statements should not always be taken at face value, but they can provide clues about its intentions, particularly in retrospect when one can match observable actions to them. OPEC takes any new oil price peak that the world economy has absorbed, even for a short time, as the rightful price for its oil.
Download Research Report #110-10 in PDF format
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8/03/07
Economic Conditions
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Economic growth rebounded in the 2nd quarter, with annualized growth in the inflation-adjusted (real) gross domestic product (GDP) rising to 3.4%. This is a significant acceleration from the modest 0.6% growth in the 1st quarter and represents the 23rd consecutive quarter of expansion of real GDP
Download Report in PDF format
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7/30/07
Press
Release
#110-19 |
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7/27/07
Press
Release
#110-18 |
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7/17/07
Press
Release
#110-17 |
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WASHINGTON, D.C. – The latest data on industrial production, employment, and manufacturing activity all signal a solid pattern of economic growth in the second quarter of 2007. Today, the Federal Reserve released industrial production figures showing a 0.5 percent increase in June, and a 1.4 percent increase over the last year.
Download Press Release #110-17 in PDF format
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6/22/07
Research
Report
#110-8
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WASHINGTON, D.C. – The overall burden of taxation is much larger than the tax receipts that government collects each year because taxes distort the behavior of individuals and firms. These distortions reduce potential output or economic welfare. Economists refer to this reduction as the excess burden or deadweight loss of taxation, which is usually expressed as a percent of tax collections either on average or at the margin (the last dollar of tax collected).
Download Research Report #110-8 in PDF format
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6/14/07
Press
Release
#110-16
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WASHINGTON, D.C. – It is a pleasure to join in welcoming the witnesses before the Committee this morning.
The topic of labor market policies in other countries is useful to examine. As we know, leave and training policies are usually part of a larger set of labor market policies. In Europe, these policies, viewed as a whole, have significantly increased the cost of employment with the result that unemployment is quite high in countries such as France and Germany. While officially lower in other countries such as Sweden, the largest Swedish trade union has acknowledged that the true unemployment rate is significantly higher than the official rate. This unemployment disproportionately affects younger workers as well as immigrants. The bottom line is that we have to look at the big picture in reviewing labor market policies in specific countries, including their programmatic costs, their economic effects, and the preferences of affected workers.
Download Press Release #110-16 in PDF format
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6/12/07
Economic Conditions
Update
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WASHINGTON, D.C. – The economy cooled in the 1st quarter, with annualized growth in the inflation -adjusted (real) gross domestic product (GDP) dipping to 0.6%, the weakest in four years. However, recent data on consumer and business investment spending, construction activity, and net exports all suggest improvements in final demand for goods and services. Measures of activity in the manufacturing and services sectors over the past two months also indicate a rebound of production relative to averages in the 1st quarter. Private forecasters expect growth to remain moderate in the near term as adjustments continue in the housing market, but also expect growth to accelerate to a more trend-like rate of close to 3.0% by year's end. Real GDP has grown at a healthy average rate of 2.9% over the past 22 consecutive quarters of expansion. Employment has also continued to expand; over 8 million new payroll jobs have been created in the past 45 months of consecutive job gains.
Download Research Report in PDF format
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6/05/07
Press
Release
#110-15
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WASHINGTON, D.C. – Recently released data on manufacturing activity, employment, business investment, and business activity in the non-manufacturing sector show that the pace of economic growth is picking up in the second quarter of 2007. For example, May payroll employment increased by 157,000, while the unemployment rate was unchanged at a low 4.5 percent. Today, the Institute for Supply Management (ISM) released its index of business activity in the non-manufacturing sector for May, which posted a 3.7 percent monthly increase to a level of 59.7 percent. In addition, the most recent reading of the Fed’s preferred inflation measure has fallen to just within the central bank’s comfort zone.
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5/23/07
Press
Release
#110-14
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WASHINGTON, D.C. – I would like to join in welcoming the witnesses testifying before the Committee today. Obviously, we all share a concern about the current level of oil and gasoline prices.
There are many possible factors that can influence oil and gasoline prices. For example, we can examine the impact of oil industry mergers. GAO has performed econometric modeling of a number of such mergers, all of which occurred in the last half of the 1990s. Whatever can be said of the impact of such mergers, the large mergers modeled by GAO reflect the antitrust policies in place during the late 1990s when they occurred.
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Download Dr. Smith's Testimony in PDF format
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5/18/07
Research
Report
#110-7
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WASHINGTON, D.C. – After India initiated comprehensive reforms in 1991, economic growth accelerated. In 2006, India’s real GDP grew by 9.2 percent.
This research report (1) reviews India’s economic reforms; (2) compares India’s economy with a peer group of large developing economies in Asia – the People’s Republic of China, Indonesia, Malaysia, the Philippines, and Thailand – that compete with India both in export markets and for inward foreign direct investment; and (3) assesses the challenges that India must overcome to sustain rapid economic growth and reduce poverty over the long term. If India meets these challenges, it will become a far more important trade and investment partner for the United States.
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5/09/07
Press
Release
#110-13
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WASHINGTON, D.C. – The Federal Reserve’s maintenance of tight monetary policy has cooled economic growth in the short run and reduced inflationary pressures, Congressman Jim Saxton, ranking member of the Joint Economic Committee, noted today. Although inflation is a monetary phenomenon, and healthy economic growth is in itself not inflationary, a tightening of monetary policy does tend to have the effect of temporarily dampening economic growth and reducing inflation over the longer term. As the Fed’s monetary policy committee wrapped up its meetings today, it announced no change in interest rates or in the stance of monetary policy. Federal Reserve and private forecasters expect economic growth to pickup in the second half of 2007.
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5/03/07
Research
Report
#110-6
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WASHINGTON, D.C. – In 1975, U.S. workers with high school diplomas earned a real mean average of $28,471 (all earnings herein are in real 2005 dollars; see Chart 1 for increases in real mean earnings and Chart 2 for education premiums). U.S. workers with bachelor’s degrees earned a real mean of $44,767, a premium of 57 percent more than high school graduates, while U.S. workers with masters, professional, or doctoral degrees earned a real mean of $60,714, a premium of 113 percent more than high school graduates.
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5/02/07
Press
Release
#110-12
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WASHINGTON, D.C. – An increase in new factory orders in March and an expansion in manufacturing activity in April reflect improvement in the manufacturing sector and a potential rebound in investment, Congressman Jim Saxton, ranking member of the Joint Economic Committee, said today. The Census Bureau data released today shows that new orders for manufactured goods climbed 3.1 percent in March, to a level of $400.2 billion. According to a release yesterday from the Institute for Supply Management, its closely watched index of manufacturing activity increased to 54.7 percent in April.
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4/26/07
Press
Release
#110-11
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WASHINGTON, D.C. – Mutual fund shareholders’ taxes on long-term capital gain distributions jumped 84 percent between 2005 and 2006, according to a new study by respected research firm Lipper Inc. The study, Taxes in the Mutual Fund Industry–2007: Assessing the Impact of Taxes on Shareholders’ Returns, estimates that mutual fund shareholders’ long-term capital gains increased from $126.7 billion in 2005 to $233.8 billion in 2006.
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4/24/07
Research
Report
#110-5
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WASHINGTON, D.C. – The flexible, dynamic, and resilient U.S. market economy is characterized by continuous economic change. New technologies, industries, and products are constantly emerging to upset the status quo. This process of economic growth creates new jobs and opportunities resulting in a greater degree of income dynamics than is apparent in some summary income measures.
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4/19/07
Economic
Conditions
Update
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WASHINGTON, D.C. – The economy continued to grow in the 4th quarter of 2006 – annualized growth in the inflationadjusted
(real) gross domestic product (GDP) was 2.5%. Despite a resilient increase in consumer
spending and rising exports, growth remained somewhat below trend, held down by continued
adjustments in the housing market and a downturn in business investment. Private forecasters
expect growth to remain moderate in the near term as adjustments in the housing market continue,
but also expect growth to accelerate to more trend-like rates of around 3.0% by year’s end. Real
GDP has grown at a robust average annualized rate of 3.0% over the past 21 consecutive quarters of
expansion. Employment has also continued to expand; over 7.8 million new payroll jobs have been
created in the past 43 months of consecutive job gains, and the Nation’s unemployment rate fell to a low
4.4% of the labor force in March, among the lowest readings in six years.
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4/17/07
Research
Report
#110-4
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WASHINGTON, D.C. – Debate over changes in the tax code often focuses on who benefits most from such changes. Most of this debate hinges on tax distribution tables that measure the impact of tax law changes on the tax liabilities of various income groups. However, many newspaper articles and think tank reports fail to consider the current pattern of tax payments when discussing the benefits of tax cuts for various income groups.
Download Research Report #110-4 in PDF format
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4/16/07
Press
Release
#110-10
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WASHINGTON, D.C. – The 0.7 percent increase in March advance retail sales is consistent with a healthy labor market and continued economic growth, Congressman Jim Saxton said today. The Census Bureau today released the data on March monthly retail sales, which also reflect a 3.8 percent rise over the last 12 months. Earlier this month the Bureau of Labor Statistics released data showing an 180,000 increase in March payroll employment, with the separate household survey indicating that the unemployment rate edged down to 4.4 percent.
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3/30/07
Press
Release
#110-9
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WASHINGTON, D.C. – Personal income and consumption expenditures both climbed 0.6 percent in February, a pace much faster than expected by many economists. According to the new data released by the Bureau of Economic Analysis (BEA) today, personal income was up $65.4 billion, while personal consumption expenditures rose $55.5 billion in February.
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3/28/07
Press
Release
#110-8
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WASHINGTON, D.C. – It is a pleasure to join in welcoming Federal Reserve Chairman Ben Bernanke before the Committee this morning.
As the Federal Reserve has noted, the U.S. economy has performed well in recent years. Economic growth has been strong, unemployment stands at 4.5 percent, and 7.6 million jobs have been created since August of 2003. Furthermore, long-term inflation pressures are under control, and long-term interest rates remain low.
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Download Chairman Bernanke's Testimony in PDF format
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3/22/07
Press
Release
#110-7
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3/14/07
Press
Release
#110-6
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WASHINGTON, D.C. – The oil cartel’s production restrictions have maintained high crude oil and gasoline prices in recent years, and should be ended immediately, Congressman Jim Saxton, ranking member of the Joint Economic Committee (JEC), said today. The Organization of Petroleum Exporting Countries (OPEC) is meeting tomorrow to review the effects of its earlier decisions to cut back oil production. Although other factors have also contributed to high oil prices, none is more important than the oil cartel’s decisions to restrict oil output. Congressman Saxton made the following statement on the cartel’s activities:
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3/13/07
Economic
Conditions
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WASHINGTON, D.C. – Following a 9% decline in Shanghai’s stock market, equity valuations tumbled in the U.S. and
across Europe and Asia on Tuesday, February 27, though analysts lack an identifiable single trigger.
The recent volatility in financial markets appears to have had little effect on expectations about the
pace of economic growth this year. Private forecasters continue to see somewhat below-trend
growth in the near term but a return to more trend-like growth of around 3.0% by year’s end.
Annualized growth in the inflation-adjusted (real) gross domestic product (GDP) was 2.2% in the
4th quarter of 2006 and has averaged 3.0% over the past 21 consecutive quarters of expansion.
Employment has also expanded; close to 7.6 million new payroll jobs have been created in the past 42
months of consecutive job gains. February’s unemployment rate was a low 4.5% of the labor force.
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3/09/07
Press
Release
#110-5
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WASHINGTON, D.C. – New employment data released today show that the economic expansion continues to create jobs. According to the Bureau of Labor Statistics (BLS), payroll employment increased by 97,000 in February, pushing the total level of payroll employment to 137.4 million. Earnings continued to grow. Employment gains in December and January were revised upward by a combined total of 55,000. According to the separate household survey, the unemployment rate edged down to 4.5 percent.
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3/08/07
Research
Report
#110-3
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WASHINGTON, D.C. – From 2001 to 2006, the U.S. economy has generally outperformed the other large developed economies of Canada, the European Union (EU), and Japan. On balance, the U.S. economy compares favorably with its peer group in terms of real GDP growth, real investment in fixed assets, industrial production, employment, labor productivity, and price stability.
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2/27/07
Research
Report
#110-2
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WASHINGTON, D.C. – The OPEC cartel has pursued a high price strategy in an oil market under pressure from rising demand. While it may have encountered short-run capacity constraints, OPEC did not commit to increase oil output and bring the price to a lower, more manageable level. Instead, it has actually cut oil output intermittently.
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2/07/07
Press
Release
#110-4
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WASHINGTON, D.C. – The real value of nonfarm hourly compensation has increased 3.0 percent over the last four quarters and 10 percent since 2000, according to new data for the fourth quarter of 2006 released today by the Bureau of Labor Statistics (BLS). This measure of labor compensation includes not only wages and salaries, but also employer-provided benefits. As the BLS has stated in its international comparisons of compensation, earnings measures “do not include all items of labor compensation; and the omitted items of compensation frequently represent a large proportion of total compensation.”
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2/06/07
Research
Report
#110-1
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WASHINGTON, D.C. – Although policymakers may be more familiar with aggregate income statistics such as the gross domestic product (GDP),examining aggregate net worth statistics can also provide policymakers with valuable insights about the performance of the U.S. economy. Accumulated wealth is as important as current income in determining the economic well-being of an individual, a firm, or a country.
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2/02/07
Press
Release
#110-3
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WASHINGTON, D.C. – A healthy pace of economic growth continues to generate solid employment gains, according to data released separately by the Bureau of Economic Analysis (BEA) and the Bureau of Labor Statistics (BLS). Wednesday, the BEA released data showing that the economy expanded 3.5 percent in the fourth quarter of 2006 and 3.4 percent for the year as a whole.
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1/31/07
Press
Release
#110-2
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WASHINGTON, D.C. – It is a pleasure to join in welcoming the distinguished panel of witnesses before us today: former Treasury Secretary Robert Rubin, former Treasury Secretary Larry Summers, Professor Alan Blinder, and Professor Richard Vedder. I would also like to congratulate Senator Schumer in joining the Committee and being designated as the incoming Chairman.
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1/22/07
Press
Release
#110-1
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WASHINGTON, D.C. – House Republican Leader John Boehner named Congressman Jim Saxton the senior House Republican member on the Joint Economic Committee (JEC), a selection that under JEC rules and procedures leads to a designation as ranking Republican of the full Committee.
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1/7/07
Press
Release
#109-107
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WASHINGTON, D.C. – According to a key Census Bureau measure, income inequality has been essentially unchanged since 2001. In response to a request by the staff of the Joint Economic Committee, a statistical test performed by the Census Bureau yesterday confirms that no statistically significant change in the inequality measure occurred between 2001 and 2005, the last year for which data are available. The measure referred to here is known as the Gini coefficient, a standard gauge of income inequality published by the Census Bureau and widely used by economists and other researchers.
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