TAX CUTS IMPROVE ECONOMY -- (House of Representatives - March 23, 2004)
The SPEAKER pro tempore. Under a previous order of the House, the gentlewoman from Tennessee (Mrs. Blackburn) is recognized for 5 minutes.
Mrs. BLACKBURN. Mr. Speaker, last week I spoke about a Tennessee report showing 15,647 new corporations, LLCs and limited partnership registrations in my State. That was the best ever, the best on record. The tax cuts that President Bush and Congress passed are clearly giving those with the entrepreneurial spirit the room to take that leap and form new businesses. This is what America is all about, living out that American dream.
And today I have more good news. This time from the Nashville Tennesseean Business Section that speaks to the growth that this Republican tax relief is helping to generate.
Democrats and candidate JOHN KERRY say the Bush tax cuts are not working, that they will repeal the Bush tax cuts and raise your tax bill so that they can fund more government spending. Well, I would like to recommend that they just hold on a minute before the Democrats rally around tax increases.
They should read this article. "Businesses Using Tax Cuts to Get While Gettin's Good." This is from the Nashville Tennesseean. "Businesses Using Tax Cuts to Get While the Gettin's Good." This is what we said would happen with tax cuts, businesses would grow.
Now the article is about John Aron, a business owner in Nashville. He runs The Pasta Shop, and his story is a testament to the Bush tax relief. Mr. Aron wanted to expand his business, but the cost of new equipment was nearly $81,000. After looking at the President's tax relief package that this Congress passed last year, and it gives businesses a tax break on equipment purchases, Mr. Aron went ahead and made the investment and expensed 57 percent of his equipment costs this year, saving his company $35,000 on his 2003 taxes.
Well, guess what he did next? He hired two employees. This is exactly what Republicans said would happen if we lowered the taxes.
Now, some across the aisle are saying, well, that is just one story and it cannot be a trend; but let me give you a few more examples. Brad Blevins spent $100,000 for a metal stamping machine for his company. He'll save $30,000 in taxes. Business grows.
Rivergate Partners in Nashville spending $350,000 on their 50,000-square-foot building. They will save $60,000. Business is growing.
Richards & Richards, able to write off $100,000 worth of storage shelving for their offices.
Get the point? Businesses are growing because of the tax relief. Mr. Aron said, "The Bush tax cuts substantially reduced the risk of entry."
If I were calling for tax increase, I would be feeling a little bit foolish right now for calling for those tax increases.
In 2003, 25 million small business owners saved an average of $2,853 on their tax bill. That is 25 million small business owners. The President and Republicans supported this relief because we know that it will spur investment and encourage Americans to start new businesses and reach that American dream.
Mr. Speaker, I would like to correct a few misplaced perceptions that have been allowed to go unchallenged far too long. The Democrats have criticized the President. They have slammed his foreign policy, his economic policy, and they often cite Europe as an example of the sort of countries that we ought out emulate.
I beg to differ.
The countries of Europe have created large, extensive welfare systems. They have outrageously high taxes. They tax and spend, all to support growing government social programs. And the result? In December 2003, Belgium had an 8.3 unemployment rate. In January 2004, France, a vocal critic of U.S. economic and foreign policy, had a whopping 9.3 percent unemployment rate. Germany, another consistent critic of the U.S., in January of this year had a 9.1 percent unemployment rate.
Mr. Speaker, in January of 2004 America had a 5.6 percent unemployment rate.
A leftist European model does not work in foreign affairs and it does not work here in economics. Unfortunately and unwisely, Democrats have adopted this kind of approach for their platform.
We have weathered a recession and September 11 with the $1 trillion impact it had on our economy, and we remain committed to tax relief. And this month the Employer Outlook Survey reported that 28 percent of the 16,000 employers that they surveyed expected to hire more workers from April to June of this year.