U.S. Representative Michael McCaul
10th District of Texas
5929 Balcones Drive, Suite 305
Austin, TX 78731
(512) 473-2357
| For Immediate Release January 28, 2009 |
Contact, Mike Rosen 512-473-2357 |
| Congressman McCaul Votes Against Pork-Filled Stimulus Bill Supports alternative plan to lower taxes, create 6 million jobs |
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“It’s unfortunate that the Democrats, who control this process, once again took advantage of a dire economic situation,” said Rep. McCaul. “They loaded this emergency bill with spending that has nothing to do with creating jobs. Tax credits for people who don’t pay taxes and sex education might be stimulating for some but they won’t stimulate the economy.”
Short on Immediate Help
Only 2.7% of the bill, or $22 billion, is dedicated to small business tax relief. And while transportation infrastructure has bipartisan support as a job creator, road and highway spending accounts for only $30 billion, or 3% of the bill. And only $7 billion can be spent in the first year when the need for stimulus is the greatest.
Pork Spending
In contrast, among the hundreds of billions of dollars in non-stimulus spending is:
· $80 billion for refundable tax-credits directly to individuals, even if they pay no taxes.
· $1 billion for the 2010 census
· $650 million for digital TV coupons.
· $600 million for new cars for the federal government.
· $6 billion for colleges/universities – many which have billion dollar endowments.
· $50 million in funding for the National Endowment of the Arts.
· $44 million for repairs to U.S. Department of Agriculture headquarters.
· $200 million for the National Mall.
· $800 million to Amtrak
· $335 million for Sexually Transmitted Disease education and prevention
· $150 million for Smithsonian repairs
The non-partisan Congressional Budget Office acknowledges that most of the money in the bill won’t be spent until at least 2011 – long after the recession is predicted to subside. Only $144 billion would be spent on infrastructure spending to create jobs and stimulate the economy in 2009 and 2010.
Alternative Plan
Congressman McCaul has co-sponsored an alternative bill that creates twice the jobs at half the cost. Economic models from President Obama’s own advisors indicate the Economic Recovery and Middle-Class Tax Relief Act of 2009 (H.R. 470) would create 6.2 million jobs over the next two years. This package would provide an immediate economic jolt, and lay the groundwork for sustained economic growth primarily through changes in the tax code that affect families as well as job providers. The Act includes:
· A 5% across-the-board income tax cut and a lower rate on Capital Gains to encourage private investment
· Encourage business growth by allowing businesses to immediately deduct from their taxes the cost of assets they purchase, instead of extending those deductions over several years
· Increase by 50% the tax deductions on student loans and qualified higher education expenses
· R&D tax credits
Congressman McCaul expressed appreciation that President Obama met with he and other House Republicans to gain support of the bill. However, the few tax cuts contained in the bill, which Rep. McCaul supports and that are proven to create jobs and stimulate the economy, are overshadowed by spending hundreds of billions of dollars to push the Democrats’ agenda. “If you take away the pork spending and leave the job creators, there’s a good chance I would have voted for this bill,” said Rep. McCaul.
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