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Public Statements

Tax Freeze and Spending Cuts Best Pathway to Job Creation

Press Release

By:
Date:
Location: Washington, DC

Congressman Wally Herger (R-CA) issued the following statement in strong support of the two-point plan to strengthen the economy outlined today by House Republican Leader John Boehner. The plan consists of saving nearly $100 billion in taxpayer money this year alone by returning non-security discretionary spending to pre-stimulus (2008) levels, and blocking looming tax increases by freezing tax rates at their current levels for two years.

"The two things most responsible for holding back our economic recovery and job creation are out-of-control spending and looming tax hikes on American small businesses. Unfortunately, the President today reaffirmed his commitment to raising taxes on small businesses at the beginning of next year and adding billions more to the debt through new spending. But over 2.6 million Americans have lost their jobs since the failed $812 billion stimulus took effect, and the President's own former top budget advisor recently declared that raising taxes now would "make an already stagnating jobs market worse.' Indeed, how can business owners plan to expand and hire new workers when the largest tax increase in history is staring them in the face?

I believe we need a new approach to spur job creation and get our fiscal house in order. The House Republican plan would immediately cut spending by $100 billion to give entrepreneurs and investors greater confidence that Congress is serious about addressing our alarming debt. Second, it would encourage job creation by assuring small businesses that they have won't to send more money to Washington come January. I hope President Obama and Speaker Pelosi will recognize the failures of their tax and spend approach and enact these important proposals in a bipartisan fashion."

Note: Peter Orszag, the director of the White House Office of Management and Budget from 2009 to 2010, stated in a September 6, 2010 column in the New York Times, "[N]o one wants to make an already stagnating jobs market worse over the next year or two, which is exactly what would happen if the cuts expire as planned."


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