It seems like bad economic news is stuck on repeat. Last week, we learned that existing home sales plummeted in July, falling nearly 30% to the lowest level in 15 years. New home sales also dropped 12.1%, the lowest level for July since 1963. On Friday it was announced that GDP growth fell precipitously in the 2nd Quarter to 1.6%. After a bad week, the Dow barely closed above 10,000 on Friday with this dour economic news.
So much for the "Recovery summer" that was promised by President Obama and Democratic leadership. Instead all we've seen is a sluggish economy and the real possibility of a "double dip" recession.
Home sales are a key economic indicator of how the US economy is faring at any given time. Americans buy homes when they feel economically stable and secure, but will wait if they are unsure of their finances or of the state of the economy as a whole.
How do you feel about the economy? Right now Alabama has a 9.7% unemployment rate, and families across the state are struggling to make ends meet. Businesses are afraid to hire new employees, and many are forced to close their doors altogether.
It seems that when the economy is down, the Democrats in Washington always say, "If we tax more, borrow more, and spend more money, then the government can put the economy back on its feet." But we know better. After nearly $1 trillion in stimulus funds spent, unemployment still hovers around 10%, businesses are still afraid to hire, and people aren't buying homes.
I know there is a better way to improve the economy, put Americans back to work, and help small businesses succeed.
The road to economic recovery begins with putting money back into the hands of the American taxpayers -- especially small business owners. We must extend the 2001 and 2003 tax cuts. Allowing those tax cuts to expire would raise taxes on all Americans, meaning families would have even less in the monthly budget.
Small businesses and family farms are economic engines, providing jobs in our communities. Unfortunately, new taxes (like those passed in the health care bill) and burdensome regulations make businesses less profitable, and existing taxes (like the death tax) make passing a family farm or business to the next generation almost impossible. Across the country, small businesses and family farms are closing their doors because they can no longer afford the high cost of government taxation and regulation.
As your Congressman, I will be a staunch advocate for small businesses and family farms. To that end, I have signed a pledge to repeal the death tax and have also pledged to repeal ObamaCare. These job and business-killing taxes aren't helping the economy improve -- they are making it worse. When businesses can trust that the government won't tax and regulate them to death, they will start to hire more workers.
Only then will we have a true recovery, not the false "recovery Summer" that's quickly turning into a nightmarish fall.