Bech Talks Economy and Olver Jobs Record in Athol

Press Release

Bech Talks Economy and Olver Jobs Record in Athol

Congressional candidate Nathan Bech (R-West Springfield) stopped in Athol to talk about the sputtering local economy. Speaking in front of Athol tool manufacturer L.S. Starrett, Bech said lowering corporate tax rates was key to keeping jobs in the United States.

"Lower taxes for corporations is not about handouts to the rich, it is about keeping jobs in the United States instead of China or India. These profits are double-taxed, once at the corporate level and then at the dividend level," said Bech.

According to economists, the United States has the second highest corporate tax rate of all industrialized nations - a 39% rate. Bech, praising much lower tax rates in the European Union, called for a 26% corporate tax rate. This lower rate is the average of that charged in other industrialized economies.

"America must be competitive with the world. Right now, corporations are paying taxes overseas to avoid our high rates. That's a 100% revenue loss. Lowering taxes will attract employers of all sizes to Massachusetts. That additional revenue can pay for infrastructure, healthcare, and education," explained Bech. He formerly ran a family property management company.

Bech cited the Irish economy as a case study in lower taxes leading to economic revitaliztion. According to the Industrial Development Agency (IDA), Ireland's Gross National Product grew 62% percent in real terms between 1993 and 1999, while unemployment fell from more than 14% to just 5.5% during the same period. Ireland dropped its corporate tax rate to 12.5% in 2003. The low tax rate has lured companies such as Intel, Apple, Pfizer to the Emerald Isle.

Bech criticized incumbent John Olver (D- Amherst) for failing to support bipartisan tax reforms. "Jobs have fled the district since Olver was elected in 1991 and he has done nothing to bring new jobs or keep the ones we have. He has never spent a day in the private sector. He has no idea about how hard it is to stay in business or how to provide jobs," said Bech. The federal U.S. Bureau of Labor Statistics' data show that the area has experienced a declining relative standard of living over the last two decades.

Presidential candidate Sen. John McCain (R-Ariz.) goes further than Bech by supporting a larger corporate tax rate reduction. The proposal is also supported by Rep. Charles B. Rangel (D -New York), chairman of the House Ways and Means Committee. "Reducing the corporate tax rate will help us keep our companies competitive internationally," said Rangel.

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