Washington, D.C.  -  Today, U.S. Rep. Phil English (R-Pa.), Ranking Member on the Select Revenue Measures Subcommittee, called on Congress to move swiftly and enact a pro-growth stimulus plan that will inject money into the American economy and incentivize job creation: 

FLOOR STATEMENT ON THE STATE OF THE AMERICAN ECONOMY
U.S. REPRESENTATIVE PHIL ENGLISH (R-PA)
JANUARY 23, 2008
(Remarks as Prepared for Delivery)

Madam Speaker, the current subprime housing crisis coupled with volatile energy prices, rising costs in healthcare and looming tax increases, among others, has put our country on the dark path of economic slowdown.  And, although not yet a technical recession, it certainly feels like one in the communities I represent in western Pennsylvania.

Clearly, America’s hard working families and employers are feeling the crunch from the slowing economy.

While there is a growing consensus in Washington that Congress should take action on a stimulus package to stave off further economic challenges, an agreement on how to proceed remains very elusive.

In addition to recently participating in a Joint Economic Committee hearing on the state of the economy, I have met with half a dozen respected economists, and strongly believe that unless Congress acts swiftly on a stimulus package that will inject money into the American economy and incentivize job creation, middle-class America will be forced to bear the brunt of our country’s economic instability.

And to be clear, now is not the time for politics as usual. We must unite to enact sound stimulus legislation that will:

benefit both wage earners and job creators;
encourage investment in good paying jobs;
and put more money back into the pockets of working families.

Now, how can Congress achieve these goals? 

In my view, Madam Speaker, the single best way to help struggling employers in this climate, while providing a jumpstart to the economy, is to allow companies to quickly recapture the money they invest in capital.

Congress ought to:

create incentives for American employers to invest in new equipment;
revive bonus depreciation to boost employer’s capital; and
work to enact common sense policies that will curb the reach of the corporate Alternative Minimum Tax (AMT) at exactly the time when its reach is most devastating: during economic downturns.

At the same time, Congress must explore ways in which we can mitigate the impact of a sluggish economy on low and moderate income families that are now facing new and severe economic uncertainty.

By extending unemployment benefits, rolling back the income tax on    unemployment benefits, increasing the child tax credit and providing a significant tax rebate for middle-class families, Congress can ensure every American has access to the financial resources they need to weather this pending economic storm.

While I have outlined a stimulus plan that will create an environment for job growth, reform how we tax American employers and improve UC benefits for the long-term unemployed, Congress must be vigilant in crafting a pro-growth plan that will not disturb the government’s fiscal balance.

I believe we should avoid absurd PAYGO rhetoric, which coupled with a liberal budget requiring tax increases, now seems to be hobbling action on the other side of the aisle.

Over the past year, Congressional Democrats have insisted on a budget that would impose substantial tax increases on a struggling American economy. 

These Herbert Hoover Democrats have used the labels of tax reform and revenue neutrality as a carnival mask to conceal a policy of higher taxes and higher spending, essentially placing a higher percentage of the American economy under government control.

This at a time when the economy is vulnerable, facing slower economic growth.

Instead of setting new priorities, the new majority has chosen to throw priority setting to the wind and undermined the benefits of the very tax policies that have grown the economy and helped the America’s middle-class.

At this time of economic hardship, when Americans are struggling to make ends meet, it would be inconceivable to place additional, unnecessary tax burdens on the backs of middle-class America.

Madam Speaker, time is of the essence.  Putting the economy back on a growth path must be a top priority for Washington. 

Congress must move to enact a stimulus package that is swift, significant and effective.

We must set aside sterile politics of class warfare and embrace strong pro-growth tax policies that will benefit everyone by reinvigorating the American economy.

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