The White House
President George W. Bush
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For Immediate Release
Office of the Press Secretary
December 6, 2007

Fact Sheet: Democratic Congress' Anti-Growth Agenda Threatens the Economy

      In Focus: Budget Management
      In Focus: Economy

Our economy continues to grow but the President doesn't take that growth for granted.  That's why it is critical for Congress to adopt his pro-economy policies.  Instead, the Democratic Congress has repeatedly advanced its anti-growth agenda – like higher taxes and excessive government spending – which threatens our economy and exacerbates uncertainty about future economic performance.   The Congress' record of failure and inaction has consequences for taxpayers and our economy.

Pro-Growth?

President's
Pro-Economy Agenda

 

 Pro-Growth?

Democratic Congress'
Anti-Growth Agenda







Maintaining a Low Tax Environment, Including the President's 2001-2003 Tax Relief:

  • Lower income taxes;
  • Lower income tax rates;
  • Lower capital gains tax rate;
  • Lower dividend tax rate;
  • Extend higher small business expensing;
  • Expand small business expensing.

 

X

 X
X

X
X
X
X

Raise Taxes on ALL Income Taxpayers:

  •  Budget resolution increases taxes by $1.8 trillion over 10 years.
  • "Mother of All Tax Bills":
    • formalizes tax increase in budget resolution;
    • higher income tax rates;
    • higher dividend taxes;
    • higher capital gains taxes.

 

AMT Patch for 2007 called for in February – no uncertainty if it had been acted on in timely fashion.

 

X

No AMT Patch: 

If not passed, 25 million taxpayers face tax increase of $2,000 on average; Passage later this month could result in $75 billion in delayed refunds that could hurt consumption early next year and increase economic uncertainty.


Housing Proposals:

  • FHA Modernization legislation proposed April 2006;
  • Temporarily reform the tax code to not treat cancellation of housing debt as taxable income;
  • Funding to support mortgage counseling proposed in February;
  • GSE reform sent to Congress;
  • FHASecure to give more flexibility to refinance mortgages;
  • Facilitated Hope Now Alliance.

 

X

 X


X
X
X

X

 

Congressional Inaction on Housing:

  • Despite their rhetoric, Congress has yet to send a single bill to the President's desk;
  • Senate inaction on FHA Modernization;
  • Senate inaction on mortgage tax reform;
  • Congress needs to pass funding to support mortgage counseling;
  • Congress needs to pass legislation to reform Freddie and Fannie.

Energy Proposals:

  • President's 20-in-10 proposal comprehensive vision for a more secure, cleaner energy future;
  • Rely on market innovation not excessive statutory prescription;
  • Doesn't raise taxes.

 

X

 X
X
X

Wrong Course on Energy Legislation:

  • Proposals to increase taxes;
  • Proposals to increase regulation;
  • Issues not germane to energy, including Davis-Bacon prevailing wage provisions.

 

 √

Providing Essential Funding to Fight Terrorism and Protect the Homeland:

  • Having a safe and secure nation is a prerequisite for economic prosperity;
  • Proposed needed funding for our troops, and intelligence and homeland security officials;
  • FY08 Defense appropriations passed and signed into law.

 

X

X

X

 

Congressional Inaction Threatens Troops in Harm's Way:

  • Holding troop funding hostage to arbitrary withdrawal dates;
  • Congressional inaction could result in the layoff of 100,000 Department of Defense workers;
  • FY08 Defense appropriations passed and signed into law.

 

Restrain Federal Spending:

  • Proposed spending restraint to balance the budget and minimize the Federal Government's claim on the economy's resources;
  • Domestic discretionary spending increase of 0.6% proposed for FY2008;
  • Proposed $92 billion in mandatory savings over 5 years; extended savings help solve ¼ of Medicare's 75 year unfunded obligation.

 

X

X

 

X

 

X

Excessive Federal Spending:

  • Congressional Budget Resolution calls for 9.3% increase in discretionary spending for FY2008, $22 billion more than President's budget;
  • Budget Resolution calls for $205 billion additional discretionary spending over 5 years;
  • Inaction on entitlement spending reforms, even though mandatory spending now constitutes nearly 2/3 of the Federal budget and the unsustainable growth in entitlement spending is our nation's biggest budgetary challenge.

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