Representing North Carolina’s Ninth District                                                                        

There is the ongoing debate in the United States Congress about the size of tax relief for Americans.  Basic economic theory suggests that tax relief results in the creation of jobs.  As such, it would only seem logical that more tax relief enacted by Congress would lend itself to the creation of a larger number of jobs.  Right now in America, and particularly in North Carolina, a larger number of new jobs is exactly what is needed to get the economy going again.

President Bush gave us something to aim for when he proposed an economic growth plan that featured $726 billion in tax relief over the next two years.  The non-partisan Heritage Foundation estimated that the President’s plan would generate 1 million jobs next year and add an average of 800,000 jobs each year over the next ten years. I fought for his plan and was proud that the House of Representatives passed it.

The United States Senate, however, would not agree to such a plan because it was “too big,” and instead suggested that it, along with the 1 million jobs it promised to produce, should be cut in half.  $350 billion in tax cuts to stimulate the economy is, in my opinion, simply “too small.”  I have continued to argue that the President’s entire growth package is necessary.  However, it is clear that it will not pass the entire Congress.

Determined to see the creation of an economic stimulus package that will actually stimulate the economy, the House went back to work.  Through the work of the House Ways & Means Committee, H.R. 2, the Jobs and Growth Tax Reconciliation Act, was introduced.  Though it does not contain as much tax relief as I would like, it does contain much needed incentives to spur the economy, create new jobs and give more money back to the working families who need it most.

H.R. 2, which contains $575 billion in tax relief, is helpful for the American economy and families.  According to the Heritage Foundation, this legislation will create nearly 1.6 million new jobs in the first two years.  It will also enable North Carolina businesses to add 23,000 new jobs next year, and more than 80,000 over the next five years.  Small businesses, many of which make up the backbone of the North Carolina business community, will also benefit from strong capital investment provisions included in the bill.

I am particularly pleased with the help this package gives to families. In addition to accelerating the Child Tax Credit from $600 to $1,000, it also provides immediate marriage penalty relief.  Only a tax code as convoluted as ours would penalize a couple for getting married.  I’m glad to see that this will be rectified under our proposal.

This legislation is timely, necessary and helpful to our economy.  I am glad to have voted for it and encourage the Senate to drop the “this is too big” mantra and pass economic growth legislation that will benefit the economy and American families. 

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