Steve Buyer says "congress should encourage investing and consumer spending and this is done through immediate tax relief—decreasing the capital gains tax, working families’ income tax, and small business tax. Small businesses are the heart of job creation and we should nurture their environment."

Press Release

January 28, 2009

Washington, D.C.—In a week were Indiana saw its unemployment rate jump to 8.2%, companies announced an additional 75,000 job losses and the economy continuing to slow, the Democrat majority in Congress rammed through a so called “economic stimulus bill” costing taxpayers $825 billion. However, the measure only spends 8% of the funds in 2009 and less than half of the money by the end of next, year causing many to wonder about the focus of the bill.

Indiana Congressman Steve Buyer (IN-04) and Republicans, who were largely excluded from participating in the drafting of the measure, called into question how government spending can grow the economy, why the bill needs to create 32 new federal programs and how funding STD education and prevention in a stimulus bill will help America clime out of a recession.

“This is an $825 billion spending package, money barrowed from our children and will do little to stimulate the economy and assist small businesses in the near term. It will largely only add to the nation’s growing $1.2 trillion deficit. I know that people are hurting during these recessionary times and believe we should work to put more money in the hands of taxpayers and businesses. Wasteful, government spending is the wrong approach. Our economy will grow because of pro-growth and lower tax policies, government expansion is unnecessary,” noted Buyer.

“This bill includes programs that Democrats have wanted for years. They say it will create over 330,400 government jobs but it will cost the taxpayer $646,214 per government job. It spends an additional $650 million for the digital transition for people to purchase a converter box with a $40 government voucher. The program cost per $40 voucher per person is $812. These are just two poor examples of how this bill uses people’s hard earned tax money. We were elected to help the economy and this type of use of federal dollars is unacceptable,” Buyer said.

The Congressman believes the federal government cannot spend its way out of this recession. History tells us that to expand the economy the private sector must grow. He believes there are free-market solutions to rehabilitate the economy which are left out of this spending package—we need to pass policies that promote growth and economic expansion.

“Congress should encourage investing and consumer spending and this is done through immediate tax relief—decreasing the capital gains tax, working families’ income tax, and small business tax. Small businesses are the heart of job creation and we should nurture their environment,” added Buyer.

Creating tax holidays to spur consumer spending, tax incentives for small businesses who hire within the year, and incentives for companies to bring back revenue into the states that are being held in foreign accounts are, according to the Congressman, quick means to inject money into the nation’s markets.

The Congressman notes that stabilizing home values will help bring stability back to the economy. The rate of home sales have fallen along with home prices and Congressman Buyer believes responsible buyers should be encouraged to buy by offering tax credits to home buyers. He said the spending in this package should all be targeted funding that will serve as emergency measures to jump start the economy—not pork projects that are written so specific that only certain entities can receive the funding.

Congressman Buyer complimented the packaging for including funding for energy efficiency and renewable energy programs, but a very small portion of the $18.5 billion will be spent in the next year and a half. He said we need to capitalize on American made energy today, not push it off again. The allocated funding lacks the urgency that is expressed as the need for the stimulus package and fails to truly invest in American-made energy and America’s energy infrastructure.

Congressional Democrats went above and beyond the President’s request for a stimulus package and continues to grow the package. The wasteful, Washington spending includes but is not limited to:

· $650 million for digital TV coupons.

· Only 34 of the 152 spending proposals have a chance to maintain or create jobs.

· $50 million in funding for the National Endowment of the Arts.

· $44 million for repairs to U.S. Department of Agriculture headquarters.

· $335 million for STD Education and Prevention.

· $1 billion for the follow-up to the 2010 census.

· $600 million to buy new cars for the government workers.

· $150 million for repairs to the Smithsonian Institution facilities.

Congressional Democrats’ spending package will end up exceeding more then $1.1 trillion—adding in over $300 billion in interest when it comes to paying for the $825 billion package in the coming years. The Congressman reminded his colleagues on the House floor Tuesday night that this is debt that will be very costly for the future generations and that “most of the discretionary spending in this bill will not actually be spent until after 2010—only 8 percent of the spending will take place within this year,” noted Buyer.

Congressman Buyer warns America to be on guard, that this is the first action laying out the rationale for raising taxes on the American people and to continue the train of government spending into the future.

“President Obama said this would not be a pork filled bill because the need to stimulate the economy is so great. If he still believes that, then I call upon him to refocus the funding towards items that will give immediate stimulus to the country. The economy needs a jump now. Delegating most of the funding until 2011 misses the boat,” Buyer said.

While Buyer was successful in adding one billion in major construction projects for the VA and repairs to VA cemeteries, his initiatives to create a new wave of entrepreneurship through one billion in VA small business loan guaranties for veterans was denied.

Congressman Buyer offered four amendments to be considered by the Rules Committee for consideration under the American Recovery and Reinvestment Act. The amendments the Congressman authored were intended to create jobs, provide job skill training, vocational and rehabilitation training, and provide small business loans for veterans. None of the amendments offered by the Congressman were accepted by the Rules Committee.

Congressman Buyer supported the Motion to Recommit (MTR) offered by Congressional Republicans. The legislation would provide immediate tax relief for working families, aid small businesses, tax free unemployment benefits, and stabilizes home values. The MTR failed by a vote 159 to 270 to pass the House.

The American Recovery and Reinvestment Act, H.R. 1, passed the House by a vote 244 to 188. Congressman Buyer opposed the Democrat spending package.

Quick Links:

Fast Facts on Stimulus 2009

Republican Economic Recovery Plan

Source: The office of Steve Buyer