Tax Cuts Provides Boost to Economy
TAX CUTS PROVIDE BOOST TO ECONOMY
Mr. McHENRY. Tonight, Mr. Speaker, I think it is important that we address our agenda as Republicans, and what we have done as a majority in this House. We have controlled both the House, the Senate, and the White House.
Mr. Speaker, the American people and my constituents, in particular, have been asking, what have you done? What have you achieved for us? And I want to tell you tonight the center of what we have achieved as Republicans, Mr. Speaker, is an economic growth that has been unrivaled in our Nation's history, and at the center of that economic growth are tax cuts. Those tax cuts have fueled our economic recovery over the last 6 years.
Mr. Speaker, Republican tax cuts have made an enormous difference. And let us talk about this. One hundred eleven million American taxpayers have seen their taxes decline by an average of $1,877, and for the average family that is real money. Here in Washington, D.C. they spend that in a minute, but at home in my district, in Cherryville, North Carolina, that is real money. That is real money for an American family, a family in Cherryville or in Hickory or in Morrisville, to spend on textbooks, clothes, maybe even a vacation, Mr. Speaker. That has fueled our economic recovery, the fact that the American people have more in their own pocket now than they did 6 years ago.
I will also say that a family of four earning $40,000 received a tax relief because of President Bush's tax cuts and Republican leadership in the House, they have received a tax cut of $2,010 per year, Mr. Speaker. That is for a family of four making $40,000 a year. That is a wonderful, wonderful thing that we have allowed the American people to keep more of what they earned.
Well, what we are trying to do now, what this Republican Congress is trying to do with the help of our President is not only extend the tax cuts, which I am very proud that we were able to enact just a few weeks ago; we extended the President's tax cuts for 2 more years, but to make it permanent. And what would making those tax cuts permanent do for the American people? Well, in my State of North Carolina, between now and 2014 we would produce 22,000 new jobs because of extending and making permanent the President's tax cuts.
Our annual GDP would grow by over $111 billion higher, after inflation, if we make the President's tax cuts permanent. Personal savings will grow by $163 billion per year on average over the next decade if we make the President's tax cuts permanent. And personal income will grow in the State of North Carolina on average by $4,000 a year. Disposable income, that is, Mr. Speaker. And beyond that, we are going to see the economy continue to grow if we are able to extend these tax cuts, and a strong economy will spread prosperity more evenly throughout our economy, and that is very important. The American people having more money in their pocket is a very vital thing. That is a very vital thing.
Now, my colleagues on the other side of the aisle have been four square against this. Why? They think of government solutions as the only alternative, Mr. Speaker. And I would say that it is important that we come together as a body and say that reducing the size and scope of government is a good thing. Now, my colleagues on the other side of the aisle have stood in the way of progress in terms of tax cuts. Most of them, a majority, have opposed tax cuts here on this House floor, not just for the last 5 or 6 years during the President's term, but over the course of the Republican majority for the last 12 years. Why Mr. Speaker? Because they want more revenue for government. They want government to expand.
Beyond that, Republicans have worked very hard at growing this economy in other ways. Not only have we cut taxes which has led to greater economic growth, but we are trying to increase the supply of oil, gasoline, and natural gas for all Americans, and look at alternative energies. And the Democrats have stood in our way in terms of energy policies as well. And I would encourage them to join with the Republican majority and do what is right, expand our energy supply and continue to cut taxes.
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