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Administration strongly supports House passage of H.R. 3090. The Administration
is pleased that the House has started the process of acting on a stimulus
package to help get the economy going again following the terrorist
attacks of September 11th.
The
Administration is very pleased that the bill includes the main elements
that the President has proposed for an economic stimulus package:
(a) tax relief for low-to-moderate income individuals and families
and an acceleration of scheduled tax rate cuts to spur consumer
spending, improve economic growth incentives, and restore confidence;
and (b) increased business expensing and repeal of the corporate
Alternative Minimum Tax to create jobs and encourage capital investment.
The
Administration commends the fact that this bill is focused primarily
on tax relief, since Congress has already adopted adequate spending
measures to address the economic disruption caused by September
11th. Over sixty billion dollars has been committed or proposed
since September 11th, including monies for disaster relief, security
enhancements, and defense. As part of this amount, the President
has announced a Back-to-Work Relief proposal and looks forward to
working in a bipartisan fashion with Congress to enact it. This
is ample spending to address the direct impact of the terrorist
attacks. Stimulus is best accomplished through prompt tax relief
to restore consumer confidence, spur capital investment, and thus
create new jobs. The Administration opposes alternative proposals
that contain large spending and tax increases. Raising taxes on
small businesses -- which create most new jobs -- as well as on
families and individuals is ill-advised in any environment, but
is particularly troubling in an already slow economy. Additional
spending and tax increases will retard economic recovery rather
than stimulate it.
The
Administration urges quick action in the Congress to enable an economic
stimulus package to take effect as quickly as possible. The Administration
remains committed to working with the Congress in a bipartisan manner
to produce a fiscally responsible end product consistent with the
President's principles to help consumers, spur investment, and contribute
to the recovery from the terrorist attacks of September 11th.
Pay-As-You-Go
Scoring
Any
law that would reduce receipts or increase direct spending is subject
to the pay-as-you-go requirements of the Balanced Budget and Emergency
Deficit Control Act. Accordingly, H.R. 3090, or any substitute amendment
in lieu thereof that would reduce revenues or increase direct spending,
will be subject to the pay-as-you-go requirement. OMB's scoring
estimates are under development. The Administration will work with
Congress to ensure that any unintended sequester of spending does
not occur under current law or the enactment of any other proposals
that meet the President's objectives.
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