Congressional Democrats’ ineffective economic policies prove that we need to go back to the drawing board to find economic policies that work. The economy and job creation still remain my top priorities, as this month our country has an unyielding 9.5 percent unemployment rate. I have three solutions that will bring us closer to economic recovery.
To stimulate the economy, we need to implement tax cuts for businesses and their employees. True economic stimulus puts money back into the economy by returning more to job creators and entrepreneurs. Tax cuts will have a direct and meaningful effect. All one has to do is look at how economic growth was jumpstarted after the 2003 tax cut to dividends and capital gains — which actually increased government revenues. There is no question we need to lower taxes for people at all levels of income, from our job creators to our friends and neighbors who have fallen on hard times.
Excessive regulation and taxes are a deterrent to business expansion and income. While balancing the federal budget by reducing spending, we must lower corporate and individual tax rates to promote greater savings and investment. Both the 2001 and 2003 tax cuts need to be extended permanently.
The federal government should reward the entrepreneurial spirit, innovation and risk-taking that come with starting small businesses. We must incentivize investment in existing businesses that will lead to job growth by reducing the amount of unnecessary and burdensome regulations.
One easy way to do that would be to eliminate a requirement buried in the 2,000-page healthcare bill that will force every business that conducts more than $600 worth of activity with another business to file a 1099 form with the IRS every time it does so. I can’t think of a more bureaucratic, nonsensical requirement, and I’ve co-sponsored legislation to eliminate this job-killing regulation.
I also believe we need more incentives to attract students into science and technology, in order to promote innovation. That is why we are investing in our future generations. As we try to spur job creation, we must have some policies that aim to position our country to compete in the global economy, and it’s clear we’ve been falling behind in these areas. To maintain our position as the world’s innovation leader, we must encourage this development now.
In order to make these solutions a reality, I have co-sponsored H.R. 470, the Economic Recovery and Middle Class Tax Relief Act. This legislation contains a number of common-sense tax changes that will promote economic growth and overturn decades of misguided policy. Allowing our workers and families to keep more of what they earn and save, while giving entrepreneurs and small businesses incentives to grow are the best ways to stimulate the economy. Tax cuts, along with incentives such as tax credits for capital investment, are a vital step toward jump-starting our economy.
I have tremendous hope and faith that we as a nation can work together to get our economy back on track. To get there, we need to implement these solutions because, ultimately, the prosperity of future generations depends on it.
Rep. Phil Roe (R) represents Tennessee’s First Congressional District of Tennessee.