Pro-Growth?

President's
Pro-Economy Agenda

 Pro-Growth?

Democratic Congress'
Anti-Growth Agenda

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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.

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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.

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

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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.

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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.

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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.

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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.

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Wrong Course on Energy Legislation:

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

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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.

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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.

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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.

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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.