WASHINGTON, D.C. - Tax reduction s hould be a major component in any economic stimulus bill in order to lessen the drag of taxes on the weak economy, Chairman Jim Saxton of the Joint Economic Committee (JEC) said today. Tax reduction would also provide direct and indirect relief to tens of millions of taxpayers, but some policy makers are opposing such measures.

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   WASHINGTON, D.C. - The reluctance of the Bush Administration and the International Monetary Fund (IMF) to provide more subsidized IMF loans to Argentina won support today from two leading Congressional advocates of IMF reform. Majority Leader Dick Armey and Joint Economic Committee (JEC) Chairman Jim Saxton said the new approach should mark the end of automatic IMF bailouts and loan subsidies.

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   WASHINGTON, D.C. - Each additional increase in federal spending imposes disproportionately greater costs on the economy, according to a new study released today by Joint Economic Committee (JEC) Chairman Jim Saxton. According to a large body of economic literature, the full economic cost of every dollar of additional government spending can be conservatively estimated at about $1.40, due to losses associated with tax financing of the added expenditure. The study, Hidden Costs of Government Spending, explains the sources of these costs in terms of lost output, reduced consumer welfare, and extra compliance and enforcement costs.

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   WASHINGTON, D.C. - I am pleased to welcome Acting Commissioner Orr before the Joint Economic Committee (JEC) once again to testify on the November employment situation. The employment data reported today are consistent with the finding recently made by National Bureau of Economic Research (NBER) that the U.S. economy is in recession. Payroll employment declined by 331,000 and the unemployment rate rose to 5.7 percent. Overall, the report today indicates that labor market conditions remain weak.

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   WASHINGTON, D.C. - Trade Promotion Authority (TPA) would increase economic output and improve living standards, according to a new report released today by Joint Economic Committee (JEC) Chairman Jim Saxton. The report, Economic Benefits from Trade Promotion Authority, finds that economic output both in the U.S. and other countries would be increased by trade liberalization, while also raising wages in the U.S. If fully utilized, trade liberalization could add as much as three quarters of a trillion dollars to global GDP, although gains would depend on the specific nature and scope of the trade agreements facilitated by trade liberalization.

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   WASHINGTON, D.C. - The 1.1 percent rate decline in real gross domestic product (GDP) in the third quarter of 2001 underscores the need for urgent action on economic stimulus legislation, Joint Economic Committee (JEC) Chairman Jim Saxton said today. The Commerce Department release today stated that the "major contributors to the decrease in real GDP in the third quarter were exports, nonresidential fixed investment, and private inventory investment."

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   It is a pleasure to welcome Chairman Hubbard before the Joint Economic Committee (JEC) to testify on the economic outlook. We appreciate your appearance here today, and look forward to your testimony.

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   WASHINGTON, DC - The boom in mutual funds ownership over the last 20 years has made mutual funds a primary investment for many middle-class households, according to a new study released today by Chairman Jim Saxton of the Joint Economic Committee (JEC). Despite the popularity of mutual fund investments, however, mutual fund investors remain subject to inequitable taxation of capital gains distributions. The new study, Mutual Fund Investors: A Reflection of Middle America, shows how the proportion of households owning mutual funds has grown from less than 10 percent in 1980 to about half in recent years.

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   WASHINGTON, DC - The additional security costs following the events of September 11 are creating a drag on the economy that should be offset by tax policy, Chairman Jim Saxton of the Joint Economic Committee (JEC) said today. A new JEC study, Tax Policy for Economic Growth, analyzes these additional security costs as analogous to the economic effects of a terrorism or security "tax".

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   WASHINGTON, DC - Downward price pressures amidst slumping economic conditions require actions by the Federal Reserve to cut interest rates yet again, Chairman Jim Saxton of the Joint Economic Committee (JEC) said today. Saxton reiterated his previous concerns about the international economic and financial situation.

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   WASHINGTON, DC - I would like to welcome Acting Commissioner Orr before the Joint Economic Committee to testify on the October employment situation.

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   WASHINGTON, DC -- The role of pegged exchange rates in generating many international currency crises is documented in a new study released today by Joint Economic Committee Chairman Jim Saxton. The study, Features and Policy Implications of Recent Currency Crises, describes what characteristics major currency crises during the last ten years have shared, and what the implications are for preventing future crises.

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   WASHINGTON, DC -- "Declines in investment activity continue to lead the economic slowdown and should be a focus of policies to provide economic stimulus," Chairman Jim Saxton of the Joint Economic Committee (JEC) said today. Saxton was referring to the Commerce Department's release of data showing broad declines in several investment measures. For example, real private domestic investment declined 10.7% in the third quarter of 2001, following a 12.1 percent decline in the second quarter. Fixed private investment also declined, as did its non-residential component.

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   I would like to welcome Chairman Greenspan before the Committee to testify on monetary policy and the economic outlook. We appreciate your appearance here today, and look forward to your testimony.

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   I would like to welcome Commissioner Abraham before the Committee once again to report on the release of new employment and unemployment data for September.

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   The disruption and extra security costs arising from the terrorist attacks will delay the prospect of an economic rebound and lead to a long-term burden akin to a security tax, according to a new analysis of the economy released by Joint Economic Committee (JEC) Chairman Jim Saxton today. According to the JEC paper, Current Economic Conditions and Outlook, in the aftermath of the terrorist attacks, heightened uncertainty and apprehension in the economy have had negative effects on "consumption and investment as consumer and business confidence deteriorate."

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   It is a pleasure to welcome Commissioner Abraham before the Joint Economic Committee (JEC) once again to report on the release of new employment and unemployment data for July.

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   WASHINGTON, D.C. -New budget numbers released today by the Congressional Budget Office (CBO) project a huge reduction in net federal debt over the next 10 years, Joint Economic Committee (JEC) Chairman Jim Saxton noted today. The CBO figures show that net indebtedness of the federal government is projected to fall by over $3.2 trillion dollars between fiscal 2001 and fiscal 2011. As Saxton has previously said, this implies a looming shortfall in the availability of Treasury securities that has serious implications for financial markets and institutions, monetary policy, debt management and other aspects of financial and economic policy.

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   WASHINGTON, D.C. - Information technology played an essential role in the rebound of productivity growth in recent years, according to a study released by Chairman Jim Saxton and Representatives Lamar Smith and Jennifer Dunn, of the Joint Economic Committee. According to the study, Information Technology and the New Economy, at least half, and probably more, of the increase in labor productivity in the late 1990's is attributable to information technology.

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   WASHINGTON, D.C. - The international economic and financial situation continues to be a potential problem for the U.S. economy, but could be addressed by concerted action by major central banks, Joint Economic Committee (JEC) Chairman Jim Saxton said today. In his release of several JEC studies since last year, Saxton has been warning of the risks inherent in the economic slowdown. The most recent appraisal of the economy by the JEC suggested that an economic rebound could be expected by the first quarter of 2002, but warned that there were many risks that could stall it.

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   WASHINGTON, D.C. - President Bush's recently unveiled proposal to move toward grant financing of much World Bank aid to the poorest countries was supported today by two leading advocates of international financial institution reform. House Majority Leader Dick Armey and Chairman Jim Saxton of the Joint Economic Committee endorsed the Administration's grant initiative as a way to help the poorest and most deprived people in the world without additional government funding or bureaucracy.

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   WASHINGTON, D.C. - The International Monetary Fund (IMF) is often unable to recognize signs of impending international financial instability and sometimes has supported counterproductive bailout policies to deal with this problem, according to a new study released today by Joint Economic Committee (JEC) Chairman Jim Saxton. The new JEC study, Recent Bailouts and Reform of the International Monetary Fund, concludes that the structural reforms proposed by the Meltzer Commission would improve IMF operations.

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   WASHINGTON, D.C. - The economic slowdown has now lasted about one year, threatening to edge the economy into recession, and there is considerable uncertainty concerning how and when it will end, according to a new study released today by Joint Economic Committee Chairman Jim Saxton. However, several factors seen as contributing to the slowdown - Federal Reserve monetary policy, energy prices, and the decline of the stock market - no longer seem to be exerting contractionary pressures on the economy. According to the study, Assessment of the Current Economic Environment, Fed easing of monetary policy, slipping energy prices, and recently enacted tax legislation are now working to improve economic growth.

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   WASHINGTON, D.C. - Further Federal Reserve action to provide a significant reduction in interest rates is urgently needed, Joint Economic Committee (JEC) Chairman Jim Saxton said today. Saxton has been pointing to a lack of inflation and warning of the dangers of an economic slowdown since last year.

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   WASHINGTON, D.C. - Simulations of income tax benefits provided under the new tax law (H.R. 1836) illustrate the magnitude of tax benefits for a wide variety of taxpayers, and are available through the tax calculators on the Internet. These calculators easily permit taxpayers to estimate for themselves current and future tax benefits under the new income tax relief recently enacted.

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   WASHINGTON, D.C. – The continuing energy shock is undermining the U.S. economy at a time when it is already weak, and requires changes in government policy, Joint Economic Committee Chairman Jim Saxton said today. Saxton's comments came as the Administration unveiled a proposal to address America's energy problem with a variety of policy changes.

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   WASHINGTON, D.C. – Full information related to actual income tax payments by various income groups is necessary to provide a context for tax distribution statistics, Chairman Jim Saxton of the Joint Economic Committee (JEC) said today. Unfortunately, projections of the effects of proposed tax legislation produced by various organizations often fail to include such essential information.

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   WASHINGTON, D.C. – Action by the Federal Reserve tomorrow to reduce short-term interest rates is still needed to unwind tightness in monetary policy, Joint Economic Committee Chairman Jim Saxton said today.

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   WASHINGTON, D.C. – A new policy framework for the International Monetary Fund (IMF) to provide assistance in financial crises without bailing out private sector investors will be released May 10 by Majority Leader Dick Armey and Chairman Jim Saxton of the Joint Economic Committee (JEC). The proposal was designed by Adam Lerrick and Allan H. Meltzer, both of whom were previously associated with the Meltzer Commission.

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   WASHINGTON, D.C. – The large April decline in payroll employment is reason for concern about current economic conditions, and shows the need for changes in monetary and tax policy, Chairman Jim Saxton of the Joint Economic Committee (JEC) said today. Some very recent statistical releases seem to show some stability in economic conditions, but the employment report suggests that the economy remains vulnerable.

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   WASHINGTON, D.C. – Legislation designed to encourage International Monetary Fund (IMF) compliance with U.S. law was introduced today by Majority Leader Dick Armey and incoming Joint Economic Committee Chairman Jim Saxton. The bill requires the IMF to comply with Congressional IMF reforms attached as conditions to the 1998 quota increase legislation. Although the IMF has moved to some extent to comply with the Congressional transparency reforms, it is not in compliance with lending reforms requiring the use of risk-adjusted interest rates in typical IMF bailout situations.

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   WASHINGTON, D.C. – The current method of taxing mutual fund investors is discriminatory, unfair, and economically counterproductive, according to a new study released today by incoming Joint Economic Committee Chairman Jim Saxton. The study, The Taxation of Mutual Fund Investors: Performance, Saving and Investment, highlights a defect in the tax law that imposes capital gains taxes on mutual fund investors even when their unsold shares plunge in value, as many did last year.

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   WASHINGTON, D.C. – The Federal Reserve's unusual inter-meeting interest rate cut of 50 basis points was supported today by incoming Joint Economic Committee (JEC) Chairman Jim Saxton. In recent weeks Saxton had called for a speedy and significant inter-meeting Fed interest rate cut. While supportive of the Fed's informal inflation targeting framework, Saxton has expressed concerns about the tightness of Fed policy since last year.

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   WASHINGTON, D.C. – Reductions in income tax rates would improve incentives to work, save, and invest, and improve the prospects for economic growth, according to a new study released today by incoming Joint Economic Committee (JEC) Chairman Jim Saxton. The study, Economic Benefits of Personal Income Tax Rate Reductions, also analyzes the additional economic costs imposed by the current tax system. According to the economic literature, these excess costs are estimated to range from at least 25 to 60 cents on each incremental dollar of federal revenue.

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    WASHINGTON, D.C. – The excessive tightness of monetary policy continues to undermine the economy and should be redressed immediately by the Federal Reserve, incoming Joint Economic Committee Chairman Jim Saxton said today. Over a year ago, Saxton sent a letter to Chairman Greenspan expressing concerns that an over-tightening of monetary policy based on the wrong indicators could lead to an "unanticipated, unnecessary, and costly slowdown."

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    WASHINGTON, D.C. – The Federal Reserve should consider an inter-meeting interest rate cut as soon as possible, incoming Chairman Jim Saxton of the Joint Economic Committee (JEC) said today. As Saxton has pointed out previously, leading market price indicators used by the Committee - commodity prices, long-term interest rates, and the foreign exchange value of the dollar - continue to signal excessive tightness in monetary policy.

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    WASHINGTON, D.C. – New Federal Reserve data showing the fifth monthly decline in industrial production reflect a continuation of the slowdown underway since the middle of last year, incoming Joint Economic Committee (JEC) Chairman Jim Saxton said today. Last December, Saxton noted the deterioration in the economy in releasing a JEC report on recent economic statistics documenting the slowdown in GDP growth, investment, consumption, employment, and many other measures, as well as the deterioration in the stock market. Saxton had also written a letter last March to Federal Reserve Chairman Greenspan expressing concerns about the over-tightening of monetary policy and its eventual impact on the economy.

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    WASHINGTON, D.C. – The incomplete releases of tax distribution data often made in tax policy debates are inherently misleading, incoming Chairman Jim Saxton of the Joint Economic Committee (JEC) warned today. For example, in recent years the Clinton Treasury Department released figures purporting to show the skewed effects of tax reduction, but the JEC reconstructed related data undisclosed by the Treasury that actually show that the tax shares of all income groups would be unchanged after the tax reduction is taken into account. Similar incomplete data are often released by various special interest and advocacy groups.

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    WASHINGTON, D.C. – The Federal Reserve's decision to reduce short-term interest rates by half a percentage point was hailed today by incoming Joint Economic Committee (JEC) Chairman Jim Saxton.

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    WASHINGTON, D.C. – A sharp cut in short term interest rates by the Federal Reserve is needed to further unwind its overly tight monetary policy, incoming Chairman Jim Saxton of the Joint Economic Committee said today. While supportive of the thrust of Federal Reserve policy for many years, last spring Saxton warned of the dangers of over-tightening monetary policy given the lack of significant inflation and the potential for an economic slowdown.

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    WASHINGTON, D.C. – A growing recognition that both tax cuts and interest rate cuts are not only consistent but complementary and necessary ingredients of a new macroeconomic policy strategy was welcomed today by incoming Joint Economic Committee (JEC) Chairman Jim Saxton. Last month Saxton released a JEC report on the current economic slowdown and called for quick action on both tax and interest rate cuts. On January 2, he again called for an unusual inter-meeting cut in interest rates by the Federal Reserve, a step the central bank made on the following day.

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    WASHINGTON, D.C. – Tax legislation to shield most middle class investors from immediate taxation of involuntary mutual fund capital gains distributions was introduced on the opening day of the new Congress, Congressman Jim Saxton announced today. Saxton's bill would provide income exclusions for capital gains distributions amounting to $3,000 for individuals and $6,000 for married couples. The bill would address the serious tax problems caused by large capital gains distributions made last year despite the loss of value in most mutual fund investors' portfolios.

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    WASHINGTON, D.C. – The Federal Reserve's actions to reduce short-term interest rates were welcomed today by Vice Chairman Jim Saxton of the Joint Economic Committee (JEC). Although supportive of the thrust of Federal Reserve policy in recent years, Saxton had warned last spring that the Federal Reserve's over-tightening of monetary policy at that time posed economic risks.

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    WASHINGTON, D.C. – A deepening slowdown in the economy reflected in the fifth consecutive decline in U.S. manufacturing activity demonstrates the need for policy changes from the Federal Reserve and administration, Vice Chairman Jim Saxton said today. The latest data confirm the economic slowdown documented in a JEC analysis released last month, Economic Performance and Outlook.

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