TAX CUTS + LESS SPENDING = A VIBRANT ECONOMY
By Rep. Virginia Foxx
Our economy is growing at a fiery pace. Last week, the U.S. Department of Commerce reported that the U.S. Gross Domestic Product (GDP) grew 4.8 percent in the first quarter of this year. Despite having to deal with major blows like Hurricane Katrina, our country's business investment increased at the fastest pace in 6 years, and the Dow Jones Industrial Average closed at the highest level since January 2000.
The U.S. consumer confidence level is also at a 4-year high, proving wrong early predictions of a decrease in confidence. According to the Conference Board Consumer Research Center, consumer confidence rose 2.1 points in April to reach its highest level since May 2002. And new home sales have soared by the largest numbers in 13 years.
These reports indicate that the news about our thriving economy has reached the American people. Despite the tired criticism from the minority party and their efforts to paint a gloomy picture, Americans are spending their hard-earned money and are thoroughly enjoying the success of our economic boom.
These terrific economic numbers demonstrate that this Republican-led Congress' pro-growth economic policies are working. Republicans are working to make permanent the tax relief that contributed to this economic surge. We are also working hard to rein in federal spending and increase accountability within federal programs.
With fuel prices on the minds of many Americans, Republicans are working to lower the cost of gasoline over the mid-and long-term. We have pushed for passage of the Gasoline for America's Security Act which will ban price gouging and increase U.S. fuel supply by encouraging new refineries while at the same time promoting conservation efforts.
The Republican-led Congress also enacted into law the Energy Policy Act. This bill promotes renewable, reusable fuel research and development, increased use of ethanol to stretch current crude oil supplies further and tax incentives for business and individual energy conservation efforts.
As a result of these pro-growth economic policies, our country is creating hundreds of thousands of new jobs each month and has undergone its strongest growth spurt in years. The U.S. economy has created more than five million good-paying jobs since August 2003, with 211,000 jobs created in March alone. In addition, the unemployment rate has fallen to 4.7 percent, which is lower than the average of the 1970s, 1980s and 1990s.
This encouraging economic news proves that lower taxes plus restrained federal spending equals strong economic growth. Unfortunately, members of the minority party just cannot seem to grasp this math equation.
Perhaps it's because they keep trying to substitute new variables. However, most of us understand that increased taxes plus increased spending will never equal economic growth and prosperity. Republican-led tax cuts plus restrained federal spending will always come out in favor of the American taxpayer and his checkbook.