McKeon and Business Leaders on Job Creation
As Congress finalizes the details on the $1 trillion American Economic Recovery and Revitalization Act, I wanted to again express my concern and opposition to the greatest expansion in government programs since the New Deal.
Bloomberg News reported this week that the stimulus spending package raises the federal “government’s commitment to solving the financial crisis to $9.7 trillion, enough to pay off more than 90 percent of the nation’s home mortgages.”
As we’ve painfully seen in the state of California, taxpayer dollars do not come in an endless supply. The state faces a $42 billion deficit for this year alone. The federal government’s response? Send the state more taxpayer funds, and drive us further into debt. While state lawmakers wrangle over their budget, Congress shouldn’t be adding fuel to the fire. What the state of California needs is job creation -- not government spending. And the House Republicans have a plan that creates twice as many jobs (6.2 million) at half the cost to the American taxpayer.
Last Friday, I joined business owners and auto dealers in the district to discuss job creation. Please view the video above to see my remarks.
Republican Alternative Plan
Immediate Tax Relief for Working Families: Rather than a refundable credit based on payroll taxes, we propose reducing the lowest individual tax rates from 15% to 10% and from 10% to 5%. As a result every taxpaying-family in America will see an immediate increase in their income with an average benefit of $500 in tax relief from the drop in the 10% bracket and $1,200 for the drop in the 15% bracket. A married couple filing jointly could save up to $3,200 a year in taxes.
Help for America’s Small Businesses: Small businesses (those employing less than 500 individuals) employ about half of all Americans, yet they can be subject to tax rates that siphon away one-third or more of their income. We propose to allow small business to take a tax deduction equal to 20% of their income. This will immediately free up funds for small businesses to retain and hire new employees.
No Tax Increases to Pay for Spending: The stimulus proposal pending in Congress includes record levels of government spending that will substantially increase the current deficit. Any stimulus package Video on meeting with President Obama should include a provision precluding any tax increases now or in the future to pay for this new spending. Stimulus spending should be paid for by reducing other government spending, not raising taxes.
Assistance for the Unemployed: Incredibly, the Federal Government actually imposes income taxes on an individual receiving unemployment benefits. We propose to make unemployment benefits tax free so that those individuals between jobs can focus on providing for their families.
Stabilizing Home Values: The real-estate market is paralyzed as potential buyers wait on the sidelines waiting for prices to fall even further. This is becoming a self-fulfilling prophecy. In order to encourage responsible buyers to enter the market and stabilize prices, we propose a home-buyers credit of $7,500 for those buyers who can make a minimum down-payment of 5%. Tax relief, not wasteful spending, will have the greatest positive impact on the economy in the shortest amount of time.
Tax relief, not wasteful spending, will have the greatest positive impact on the economy in the shortest amount of time. |