Getting Our Economy Back on Track
A new year brings new opportunities. 2009, with the inauguration of a new president and the start of a new Congress, promises to be both challenging and exciting. I am looking forward to working with President-elect Obama to address our country’s challenges in a bipartisan way. Chief among them is getting the economy back on track. To this end, I have introduced a trio of bills aimed at stimulating the economy through grass roots growth.
The centerpiece of my plan is the Fair and Simple Tax (FAST) Act, H.R. 99, which would dramatically simplify the tax-filing process by creating an optional, one-page tax form, while reducing the tax burden on working families. The new form implements three simplified income tax brackets – 10% on the first $40,000 in income, 15% on incomes between $40,000 and $150,000 and 30% on any income above $150,000. The FAST Act also retains all the major deductions, including mortgage interest, state and local sales tax, charitable contributions, the child tax credit and the personal exemption. This bill would also implement a number of tax reforms to stimulate growth and create jobs.
Because the problems in the housing and auto industries are at the root of our economic crisis, my economic package also includes two bills to get them moving again. The Economic Recovery Through Responsible Homeownership Act, H.R. 101, creates a new tax credit for 2009 and 2010 for every home purchase made with a down payment of at least 5 percent and up to 15 percent. The Commonsense Auto Recovery (CAR) Act, H.R. 100, will provide an immediate and important stimulus to aid with the purchase of an automobile by creating a tax credit in the amount of state and local sales taxes paid on the purchase of a new or used vehicle in 2009 and 2010. Both of these measures are temporary, because the need for stimulus is so urgent. I believe we need to provide incentives, not handouts.
Reform of the tax code is ultimately a long-term goal. At the same time, our economy is clearly in need of an immediate, focused shot in the arm, which is why I introduced the housing and auto measures. Our economic crisis is severe, and will not be solved overnight. As discussions in Washington continue, I will be advocating solutions that help working families keep more of their hard-earned money, as well as their jobs and homes. I don’t believe that runaway government spending is the answer to what ails our economy. The solution is job creation and long-term tax relief.
As we work through these challenging times, I look forward to hearing from you about your thoughts and concerns. Working together, we can restore our economy and get it growing again.
