Foxx Calls for Openness, Bipartisan Negotiations on Stimulus
“Pass a bill that helps struggling workers get back on their feet”
WASHINGTON, D.C. – Congresswoman Virginia Foxx (NC-05) today made the following statement on the House floor after the Senate passed its version of the stimulus. Foxx called on the Democratic majority (watch video) to allow House Republicans to bring their ideas to the negotiating table as the House and Senate hammer out the differences between the two competing stimulus bills:
“America faces an unambiguously dramatic economic downturn,” Foxx told the House of Representatives. “And Americans are hurting in this very difficult economic time.”
“But Republicans in the House are still waiting for an opportunity to bring our ideas for economic recovery to the table. So far we’ve have been shut out of negotiations.”
“For instance, Republicans have proposed real assistance for the unemployed by slashing federal taxes on unemployment benefits. But our suggestions for effective economic recovery have been ignored.
“The result? A bill that does little to stimulate the economy and lots to stimulate the federal government and our national debt.
“We must pass a bill that helps struggling workers get back on their feet and that encourages entrepreneurs—the real engines for job creation—to take risks again.
“Mr. Speaker, we cannot borrow and spend our way back to prosperity.
Note: The House Republicans’ alternative Economic Recovery Plan contains targeted tax cuts for every family and small business. It includes the following provisions:
Immediate Tax Relief for Working Families: Rather than a refundable credit based on payroll taxes, 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.
Real Help for America’s Small Businesses: 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. House Republicans propose to allow small business to take a tax deduction equal to 20% of their income. This will immediately free up funds for small businesses to retain and hire new employees.
No Tax Increases to Pay for 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 new tax increases on American working families. 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. House Republicans believe that any stimulus spending should be paid for by reducing other government spending, not raising taxes.
Assistance for the Unemployed: Incredibly, the Federal Government actually imposes income taxes on an individual receiving unemployment benefits. House Republicans propose to make unemployment benefits tax free so that those individuals between jobs can focus on providing for their families. The plan would also extend unemployment benefits for a full year.
Stabilizing Home Values: The real-estate market is paralyzed as potential buyers wait on the sidelines waiting for prices to fall even further. This is becoming a self-fulfilling prophecy. In order to encourage responsible buyers to enter the market and stabilize prices, House Republicans propose a home-buyers credit of $7,500 for those buyers who can make a minimum down-payment of 5%.