What Proposed Stimulus Plans Mean For Our District
Washington, Jan 28, 2009 -Rep. Dana Rohrabacher, CA-46:
What Competing Stimulus Plans Mean For Your District
The Pelosi-House Democrat Stimulus Bill:
At A Total Cost Of $825 Billion, The Pelosi-House Democrat Stimulus Bill Will Cost The Residents Of Your District Over $2,700 Each. With 651,141 residents, that is a total cost for your constituents of $1.8 billion.
The government will have to borrow every single penny of this spending – much of it from foreign governments; and American families will have to pay this money back with interest.
As a result, some Democrat Leaders are already talking about the need to raise taxes. Speaker Pelosi stated in January that she is in favor of raising taxes “as soon as possible.” (Paul Kane, "Pelosi Urges Obama To Raise Taxes On Wealthy This Year," The Washington Post, 1/8/09)
Under the Pelosi-House Democrat Stimulus bill, your constituents’ tax dollars will be spent on:
• $600 million to buy new cars for government workers – The government already has a fleet of about 642,000 trucks, passenger cars, and other vehicles
• $200 million to repair the National Mall in Washington D.C., including new grass
• $50 million for the National Endowment for the Arts – Recent NEA expenditures include $190,000 for various artistic endeavors in San Francisco, CA
• $3 Billion for Prevention & Wellness Programs, including $335 million for STD Education and Prevention – Recent government expenditures in this area include a transgender beauty pageant in San Francisco that advertised available HIV testing and an event called “Got Love? – Flirt/Date/Score” that taught participants how “to flirt with greater finesse.”
If their estimates are correct that the Democrat bill will create or preserve 3.6 million jobs, with a total cost of $825 billion that works out to $225,000 for each job. The average wage for those jobs would be less than $50,000 a year. (Calculated using Bureau of Labor Statistics data.)
A Better Way: The House Republican Economic Recovery Plan:
Immediate Tax Relief For Working Families:
House Republicans Propose Reducing The Lowest Individual Tax Rates From 15% To 10% And From 10% To 5%. As a result, every taxpaying-family in America will see an immediate increase in their income with an average benefit of $500 in tax relief from the drop in the 10% bracket and $1,200 for the drop in the 15% bracket. A married couple filing jointly could save up to $3,200 a year in taxes.
In Your District:
• 255,038 filers will benefit from the reduction in the 10% bracket.
• 204,869 filers will benefit from the reduction in the 15% and the 10% brackets. (Source: The Heritage Foundation)
Help For America’s Small Businesses:
House Republicans propose To Allow Small Business To Take A Tax Deduction Equal To A 20% Of Their Income. Small businesses (those employing less than 500 individuals) employ about half of all Americans, yet they can be subject to tax rates that siphon away one-third or more of their income. The House Republican proposal will immediately free up funds for small businesses to retain and hire new employees.
In California, there are 3.4 million small businesses with 500 or fewer employees. These small employers:
• Represent 99.2% of the state’s employers
• Created 87.6% of the state’s net new jobs from 2004 to 2005
Of the small businesses in California:
• 870,496 are women-owned
• 83,400 are manufacturers
• The accommodations and food services industry was the state’s largest small employer in 2006
(Source: Small Business Administration Office of Advocacy)
Assistance For The Unemployed:
House Republicans Are Proposing To Make Unemployment Benefits Tax Free So That Those Individuals Between Jobs Can Focus On Providing For Their Families. Incredibly, the Federal Government actually imposes income taxes on an individual receiving unemployment benefits.
• As a result of the taxation of unemployment benefits, unemployed Americans forfeit approximately 11% of their unemployment benefits to the Federal Government (Source: The Congressional Research Service)
Stabilizing Home Values:
House Republicans Are Proposing A Home-Buyers Credit Of $7,500 For Those Buyers Who Can Make A Minimum Down-Payment Of 5%. The real-estate market is paralyzed as potential buyers wait on the sidelines expecting prices to fall even further. This is becoming a self-fulfilling prophecy. The House Republican proposal will encourage responsible buyers to enter the market and stabilize prices,
• Even though prices on homes have been falling, sales have also fallen
• At the current rate that homes are being sold in the U.S. it would take over 11 months to sell all the homes currently on the market, and that assumes no new home go up for sale
No Tax Increases To Pay For Spending:
House Republicans Are Insisting That Any Stimulus Package Include A Provision Precluding Any Tax Increases Now Or In The Future To Pay For This New Spending. The stimulus proposal pending in Congress includes record levels of government spending that will substantially increase the current deficit. House Republicans are concerned that this level of spending will result in some proposing near-term tax increases on American families. House Republicans believe that any stimulus spending should be paid for by reducing other government spending, not raising taxes.