This week, the House voted once again to sustain the President’s veto of legislation expanding the State Children’s Health Insurance Program. The House adjourned for the week on Wednesday in order to accommodate the annual planning meetings for the Republican Conference.

Stimulus Package Announced

This week, House leaders announced bipartisan legislation intended to stimulate the economy and avoid a potential recession. The centerpiece of the plan is a tax rebate, which will result in checks being issued to all Americans who earned income of at least $3,000 in 2007. Those Americans with children will also receive $300 additional for each child. In general, Americans who have an income tax liability will receive progressively more, up to $600 for individuals and $1,200 for couples, plus the additional amount for children. For example, a married couple with a taxable income of $80,000 and three dependant children will receive $2,100. This plan is phased out for single filers with more than $75,000 of Adjusted Gross Income and $150,000 for married couples filing jointly. The rebate is strongly titled towards taxpayers, with more than 70 percent of its benefits going to individuals and families that pay income taxes. The rebates will be sent to qualifying individuals and families by check, which will be delivered as soon as possible; the amounts will NOT be part of a taxpayer’s regular income tax refund. Under the plan, Americans will need to make no additional filing with the IRS or otherwise apply for the checks; they will be mailed automatically. The economic growth package also includes tax cuts to benefit small businesses, which will give employers – particularly small businesses – greater incentive to invest and create jobs for more Americans searching for work.

Round Two

The current proposed economic stimulus package may soon be coupled with another plan designed to jump start the economy. House Republicans secured major victories on behalf of American taxpayers during this month’s negotiations – keeping the plan focused only on stimulating the economy by easing the tax burden on middle-class families and small businesses. At the outset of this process, House Republicans insisted that tax hikes and unrelated spending increases not be included in the package. Standing on principle, we succeeded in eliminating all extraneous spending and tax hikes from the final agreement. Democrat leaders had hoped to include in the package an additional $125 million for a Green Jobs Program within the Department of Labor, expanded food stamp and unemployment benefits, and a $2 billion temporary summer jobs program geared toward students. As we turn to the next steps, conservatives will once again be forced to fend off proposals that will raise taxes and spending. History shows us that the best way to provide an economic turnaround, preserve jobs and spur economic growth is to ensure that job creators face a lower tax and regulatory burden. To achieve that result, I have co-sponsored the Economic Growth Act of 2008, which would provide broad, growth-oriented, permanent incentives for economic activity across all sectors and industries. This bill would immediately cut the top corporate income tax rate from 35 percent to 25 percent, index for inflation the cost basis used when calculating the capital gains tax on assets acquired before the end of 2008, allow for full and immediate business expensing, and simplify the capital gains rate structure. These provisions will allow businesses to keep more of the money they earn, encouraging the expansion of businesses, the hiring of more workers, and an acceleration of investment, while making American companies more competitive internationally. The Economic Growth Act of 2008 is based on the principle that the best economic stimulus comes from allowing the private sector – and not government – to succeed.

Quote of the Week

“I frankly can’t wait because the idea of Bill Clinton back in the White House with nothing to do is something I can’t imagine,” – Presidential candidate Mitt Romney when asked about prospect of running against the team of Senator Hillary Clinton and her husband, the former president. January 24, 2008.