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Inglis outlines principles for Stimulus
Says he cannot support stimulus package coming to the House this week
(January 26, 2009)
U.S. Rep. Bob Inglis said he could not support the current $825 billion stimulus proposal being crafted by Democratic leaders in Congress because it would grow government and the deficit with minimal job growth or economic boost.
“Congress can work with our new President to revive our struggling economy, but the bill being crafted by Democratic leaders fails the test,” Inglis said. “We need a stimulus that will improve our conditions in the short term and provide transformational change for the economy in the long term.”
The plan working toward a vote this week in the House would dedicate $550 billion to spending and $275 billion to tax cuts. A recent report by the Congressional Budget Office (“CBO”) found that much of the spending would occur too slowly to create the jobs that President Obama seeks. According to CBO only 7% of the $358.1 billion in discretionary funds would be spent be spent in fiscal year 2009; 38% by the end of fiscal year 2010 (when the economy is expected to be recovering); and 67% in fiscal year 2011. Moreover, much of the spending would permanently grow government rather than providing temporary stimulus.
Inglis outlined Monday four principles for stimulating the economy:
- Actual stimulus
- Since the goal is to use government spending to stimulate the sluggish economy, projects should be “shovel ready,” meaning that they have cleared a vetting process, that permits have been issued and that the economic downturn has caused them to be delayed.
- Transformational change
- While stimulating the economy in the short term, we should be looking for concepts that could transform our economy by boosting long-term productivity and growth
- Examples include:
- Elimination of payroll taxes (12.4% on the first $102,000 of income) and, in their place, the institution of a carbon tax. Rather than increasing taxes, this would simply change what we tax—broadening the tax base; creating demand for new energy technologies and thereby creating jobs; helping to break our addiction to oil and thereby improving our national security; and discharging our stewardship obligation as to the environment
- Health care reforms that lower the cost of coverage and extend insurance coverage to every American
- Tax reform that simplifies the system and rewards work, savings and investment
- Spending must sunset
- We should not start new programs in a hastily conceived stimulus package. Over 50% of the spending in the bill is estimated to start after October 2010 (when the economy is estimated to be fully recovered).
- Transparency
- The bill should not contain earmarks and the public should be able to track all of the spending in the bill online.
“We stand ready to work with the President for the good of the country,” Inglis said. “While the current proposal from House Democrats ignores President Obama’s vision for an effective stimulus, I hope we can all collaborate to produce a successful bill."