Our economy continues to grow but the President doesn't take that growth for granted. That's why it is critical for Congress to adopt his pro-economy policies. Instead, the Democratic Congress has repeatedly advanced its anti-growth agenda – like higher taxes and excessive government spending – which threatens our economy and exacerbates uncertainty about future economic performance. The Congress' record of failure and inaction has consequences for taxpayers and our economy.
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Pro-Growth?
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President's
Pro-Economy Agenda
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Pro-Growth?
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Democratic Congress'
Anti-Growth Agenda
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Maintaining a Low Tax Environment, Including the President's 2001-2003 Tax Relief:
- Lower income taxes;
- Lower income tax rates;
- Lower capital gains tax rate;
- Lower dividend tax rate;
- Extend higher small business expensing;
- Expand small business expensing.
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Raise Taxes on ALL Income Taxpayers:
- Budget resolution increases taxes by $1.8 trillion over 10 years.
- "Mother of All Tax Bills":
- formalizes tax increase in budget resolution;
- higher income tax rates;
- higher dividend taxes;
- higher capital gains taxes.
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AMT Patch for 2007 called for in February – no uncertainty if it had been acted on in timely fashion.
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No AMT Patch:
If not passed, 25 million taxpayers face tax increase of $2,000 on average; Passage later this month could result in $75 billion in delayed refunds that could hurt consumption early next year and increase economic uncertainty.
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Housing Proposals:
- FHA Modernization legislation proposed April 2006;
- Temporarily reform the tax code to not treat cancellation of housing debt as taxable income;
- Funding to support mortgage counseling proposed in February;
- GSE reform sent to Congress;
- FHASecure to give more flexibility to refinance mortgages;
- Facilitated Hope Now Alliance.
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Congressional Inaction on Housing:
- Despite their rhetoric, Congress has yet to send a single bill to the President's desk;
- Senate inaction on FHA Modernization;
- Senate inaction on mortgage tax reform;
- Congress needs to pass funding to support mortgage counseling;
- Congress needs to pass legislation to reform Freddie and Fannie.
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Energy Proposals:
- President's 20-in-10 proposal comprehensive vision for a more secure, cleaner energy future;
- Rely on market innovation not excessive statutory prescription;
- Doesn't raise taxes.
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Wrong Course on Energy Legislation:
- Proposals to increase taxes;
- Proposals to increase regulation;
- Issues not germane to energy, including Davis-Bacon prevailing wage provisions.
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Providing Essential Funding to Fight Terrorism and Protect the Homeland:
- Having a safe and secure nation is a prerequisite for economic prosperity;
- Proposed needed funding for our troops, and intelligence and homeland security officials;
- FY08 Defense appropriations passed and signed into law.
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Congressional Inaction Threatens Troops in Harm's Way:
- Holding troop funding hostage to arbitrary withdrawal dates;
- Congressional inaction could result in the layoff of 100,000 Department of Defense workers;
- FY08 Defense appropriations passed and signed into law.
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Restrain Federal Spending:
- Proposed spending restraint to balance the budget and minimize the Federal Government's claim on the economy's resources;
- Domestic discretionary spending increase of 0.6% proposed for FY2008;
- Proposed $92 billion in mandatory savings over 5 years; extended savings help solve ¼ of Medicare's 75 year unfunded obligation.
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Excessive Federal Spending:
- Congressional Budget Resolution calls for 9.3% increase in discretionary spending for FY2008, $22 billion more than President's budget;
- Budget Resolution calls for $205 billion additional discretionary spending over 5 years;
- Inaction on entitlement spending reforms, even though mandatory spending now constitutes nearly 2/3 of the Federal budget and the unsustainable growth in entitlement spending is our nation's biggest budgetary challenge.
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George W. Bush, Fact Sheet: Democratic Congress' Anti-Growth Agenda Threatens the Economy Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/285396
