RYAN CALLS FOR GREATER TAX RELIEF TO SPUR ECONOMIC GROWTH

WASHINGTON – At a press conference this morning, First District Congressman Paul Ryan joined other Members of Congress in unveiling a tax relief proposal that will include the existing components of President Bush's tax proposal plus additional tax relief to spur economic and job growth.

Ryan will cosponsor the proposed legislation – the Economic Recovery and Growth Act – which will:

• Continue to safeguard the Social Security and Medicare surpluses, allowing Congress to reduce all of the available publicly held debt by the end of the decade. (The debt remaining in 2010 would consist of 30-year Treasury bills, savings bonds, and debt held by state and local governments all of which cannot be redeemed.)

• Include the existing components of President Bush's proposal. Like the President's tax relief plan, the centerpiece of the Economic Recovery and Growth Act is a broad-based tax cut that would benefit all taxpayers.

• Accelerate and expand the President's tax relief proposal by more rapidly phasing in rate reductions, as well as repeal of the marriage penalty and the death tax, in order to more quickly stimulate economic growth and job creation.

• Include other tax relief measures to stimulate the economy and allow taxpayers to keep more of their hard-earned money, such as an expansion of IRA contribution limits and a reduction in the capital gains tax rate.

While details of the legislation are still being worked out, it is expected to amount to over $2 trillion in tax relief over the course of this decade.

“Congress needs to do everything within its power to prevent a recession. This kind of fiscally responsible, pro-growth tax relief can give our economy the boost it clearly needs,” said Ryan. “If the bulk of the non-Social Security, non-Medicare surplus is left in Washington, it’s likely to be squandered on government bureaucracy. I believe Wisconsin taxpayers can put that money to much better use.”

Ryan went on to say: “The proposal we’ve outlined today would benefit all Wisconsin taxpayers, allowing them to keep more of their hard-earned money to spend, save or invest as they see fit. They could use that money to help cover medical expenses, put it away for their children’s education, or put it back into the family business. I know significant tax relief would be especially welcome to Wisconsinites who have been hit hard by skyrocketing energy costs.”

“At the same time, by lowering taxes this legislation will encourage entrepreneurial activity, which leads to increased productivity and job creation,” added Ryan. “When paired with fiscal discipline, such as keeping Social Security and Medicare surpluses off limits and paying down the public debt, broad-based tax relief can go far to stimulate economic recovery and growth."

"We are no longer facing a trade off between debt reduction, prescription drug reform and tax cuts. With the current surplus, the trade off is between immediate tax relief or new spending in Washington. At a time when we are losing manufacturing jobs in Southern Wisconsin, we need to do all we can to help taxpayers and create jobs," said Ryan. 

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