PJ BLOGGER

Incurring Massive Debt is Not a Stimulus Plan

In Uncategorized on February 3, 2009 at 10:56 am

Dear Friends,
As I write to you, Congress is contemplating spending over $800 billion dollars in a bill aimed at reviving the economy. Unfortunately, this massive spending bill will do little to stimulate economic growth, and will simply serve to put future generations of Americans in greater debt. If deficit spending could expand the economy, U.S. financial markets would be booming in the wake of the $1.2 Trillion record deficit that Nancy Pelosi and Harry Reid have racked up since October of 2008.

The total cost of this one piece of legislation is almost as much as the annual discretionary budget for the entire federal government. President Reagan said the best way to understand a trillion dollars is to imagine a crisp, new stack of $1000 bills. If you had a stack 4 inches high, you’d be a millionaire. A trillion-dollar stack of $1000 bills would measure just over 63 miles high.

President Obama has said that his proposed stimulus legislation will create or save three million jobs. This means that this legislation will spend about $275,000 to create each job. The average household income in the U.S. is $50,000 a year. If you do the math, the proposal would cost each and every household $6,700 additional debt, paid for by our children and grandchildren.

This proposed spending package comes at a perilous time in our nation’s history. While the public continues to climb past $10.6 trillion, this is not nearly an accurate picture of the nation’s current and future liabilities. When Congress effectively nationalized Fannie and Freddie, the government assumed the companies’ $5 Trillion in mortgage debt. And of course, sitting on top of all these obligations lays the approximately $50 Trillion in unfunded liabilities of the nation’s entitlement programs.

As an alternative to this “borrowing and spending” plan, I introduced legislation which would provide tax relief to American businesses, entrepreneurs, and families, while refraining from starting a multi-trillion dollar debt-financed spending spree. The Economic Recovery and Middle-Class Tax Relief Act would give the country needed short-term stimulus, while also encouraging long-term economic growth. This legislation focuses on growth-oriented, permanent incentives for economic activity across all sectors, and includes provisions such as reducing the corporate income tax rate to 25 percent, repealing the Alternative Minimum Tax for individuals, indexing capital gains for inflation, and a 5 percent across-the-board reduction to individual income tax rates. The stimulus package also includes spending cuts, and extends the current two-year Net Operating Loss (NOL) carryback period to seven years.

History has shown that the most effective way to reinvigorate the economy and spur economic growth is to ensure that job creators face a lower tax and regulatory burden. If Congressional leaders adopt a stimulus package based on these or similar principles, instead of adopting a package of increased spending, then we will hopefully create real economic stimulus for America.

Sincerely,

Scott Garrett
Member of Congress

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  1. Scott, tell us why you supported a massive debt under President Bush.

  2. 726 HE DIDNT LEARN TO READ, DUMMY!

  3. Yes i agree with 806 if your gonna comment at lest have some clue what your talking about ,this blue jerky bs is just a bunch of crap

  4. Scott – Thank you for being one of the few legislators on Capital Hill who opposed these massive “bailouts” from the start.

    Nice to see some of your colleagues have finally grown some backbone.

    Keep leading the fight to not throw my hard earned money away.

    Thanks again Scott!

  5. Scott, thanks for being Dr. No.

    Keep up the good work.

  6. 7:26,

    Just where have you been. Scott has never supported the “massive debt under Bush.”

    I suggest you take a look at his voting record, he voted no to virtually every spending increase.

    Wish more congressmen had his courage and principles.

    And speaking of “massive debt,” the one we have in there now is far worse… goaded on by his fellow Democrats controlling the majorities in both houses.

  7. *** Explainer ***

    Ideologues like 7:26 don’t have to be bothered with pesky things like facts. Not having to carry around that extra baggage lightens their load, allowing their knees to jerk that much faster.

    …and yes, they are allowed to vote.

  8. Geez, you right-wing Garrett will do anything to avoid the facts.

    Just look at his voting record on
    — H.R.1559: Emergency Wartime Supplemental Appropriations Act, 2003
    — H.AMDT.146 to H.R.1588: National Defense Authorization Act for Fiscal Year 2004
    — H.R.1815: National Defense Authorization Act for Fiscal Year 2006

    Garrett rolled over when Bush/Cheney came asking for money to fund their war, regardless of the price tag.

    That was fiscal responsibility?!?

  9. 5:58 PM –

    You think these votes are fiscally irresponsibile?
    You can’t be serious.
    You are just joking around with me – trying to get a rise out of me, right?

    Yes. It is good to vote to appropriate monies to fund our national defense. That is a fiscally responsible use of our tax dollars.

    National Defense (the safety of all US citizens) is the #1 job of the federal government.

    Is this the best “dirt” you can dig up on Garrett’s supposed “fiscal irresponsibility”?

  10. Garrett, the Republican Congress, and the Republican White House turned a budget surplus of $236 billion in 2000 into a deficit of 396 billion in 2008.

    See this chart: Yearly Budget Deficit or Surplus, 1961 to Present

    Like it or not, that is a fact.

    & that is fiscal IRRESPONSIBILITY.

  11. National Defense (the safety of all US citizens) is the #1 job of the federal government.

    It costs money.

    Money well spent.

  12. Even National Defense needs accountability. Accountability was in short supply in all areas of government under Bush/Garrett

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