|
As 2005 draws to a close, the U.S. House continues to work on legislation that will ensure sustained economic growth throughout the coming years. Good economic policies such as tax relief will lead to a stronger economy and a lower deficit. These policies have proven they work and are showing results. Following the convergence of historic economic challenges, including September 11, 2001, the ‘bubble bust’ of the late 1990’s, two years of devastating natural disasters and funding a war, the economy is thriving under Republican economic policies.
Economic policies passed by Congress have provided an atmosphere where small business owners have taken risks, invested in capital improvements and created jobs. As a result, consumer confidence is up dramatically, nearly 14 points from October to November. The unemployment rate is lower than the average of the last four decades, with over 4.4 million jobs created since May 2003. For 10 straight quarters the national gross domestic product (GDP) has exceeded three percent, with the GDP growing at 4.3 percent in the third quarter. Any objective view of this economy, including the composite index of leading economic indicators, projects continued economic expansion.
President Bush has called on Congress to keep the economic momentum going by making tax relief permanent and working against efforts to increase taxes. Current tax relief provisions have led to a 15 percent increase in federal revenue over the past year while budget deficit estimates have been reduced by approximately $100 billion. A strong, vibrant economy will continue to help us reduce the federal deficit.
In the past couple of weeks the House has worked on legislation that will help lower the deficit, decrease spending and lower taxes. Last week, the House took up the Tax Relief Extension Reconciliation Act of 2005 that will benefit virtually every working American and continue to steer our economy in the right direction. The key provisions in this legislation include extending the reduced tax rates on capital gains and dividend income through 2010. According to the Joint Committee on Taxation, over 60 percent of Americans receiving capital gains or dividend income have incomes of $100,000 or less and stand to benefit from the passage of today’s bill. I believe this plan is important to continue the type of economic growth we have seen over the past couple of years. This legislation passed in the House and must now pass in the Senate.
This week will most likely be the last week of session in the U.S. House and perhaps the last opportunity this year to pass legislation that will help grow our economy and lower the deficit. I hope that the House and the Senate will be able to come to a bipartisan agreement and pass both the Tax Relief Extension Reconciliation Act of 2005 and the Deficit Reduction Act before we go home for the Christmas holiday. These two pieces of legislation are important to continue economic success in the new year. |
