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Washington D.C.- Congressman Jeb Hensarling (R-TX), Chairman of the Republican Study Committee – a group of over 100 Conservative members of the House of Representatives, issued the following statement regarding a potential economic “stimulus” plan:
“It is clear that hard working families in America are struggling to make ends meet and that the economy needs a boost. Conservatives know that it is never a bad time to let families keep more of their own money. We are, in fact, the ones who have been leading that charge in Congress. We agree that now is an especially good time for family tax relief given rising energy, food, and tuition costs. However, temporary consumer tax rebates should not be confused with economic stimulus. I remain concerned that in the rush to act, an opportunity to put together legislation that will actually grow and stimulate the economy is being missed.
“The last time our country faced recession, rebates were helpful to consumers but did little to turnaround the economy. History shows us that the best way to provide an economic turnaround, preserve jobs and spur economic growth is to ensure that job creators face a lower tax and regulatory burden. Part of our economic slow down is due to the massive tax increases threatened by Democrats and the resulting uncertainty. Thus, nothing would help our economy more than making permanent the tax relief that is soon to expire. Congress should also immediately enact laws that reduce the corporate tax rate and capital gains rate while indexing gains attributable for inflation.
“Though many of the ideas and principles being discussed will not hurt at their inception, Democrat leaders and candidates continue to talk about enacting a massive tax hike to pay for increased government spending. Raising taxes to fund a temporary package intended to grow the economy is akin to taking a bucket of water from the deep end of a pool and dumping it into the shallow end. Tax increases would penalize businesses while taking more out of the family budget, further damaging the economy. In addition, under no circumstances can a stimulus package begin to carry Democrat spending proposals that have thus far languished. Now is the not the time to induce our entitlement crisis to explode even further.
“House conservatives believe that economic stimulus legislation should actually include economic stimulus.”
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