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<From: "Jack Oliver, Deputy Chairman, RNC" <gopteamleader@gopteamleader.com< <To: "mtaylo9@lsu.edu" <mtaylo9@lsu.edu< <Subject: Call Your Senators: Pass The President's Growth Plan <Date: Tue, 20 Nov 2001 04:36:17 -0500 < < < <"Congress and the President must act again to help our economy and to <prevent the situation from worsening. We must get our workers back to work <and strengthen our businesses so that they can continue to be productive <and hire more employees." House Speaker Dennis Hastert to Congressional <Republicans, November 19 < <In the aftermath of September 11, our economy needs a boost. President <Bush and Members of Congress agree on the necessity of an economic stimulus <package, yet there has been no package passed by the Senate. < <President Bush has proposed an economic stimulus package that provides <needed assistance NOW without significant increases in unemployment, state <mandates and business taxes. The President wants the Senate to pass a bill <that focuses on job creation instead of creating new taxes on employers or <new costs on states. < <CALL YOUR SENATOR(S) TODAY, and tell them to support the President?s <economic growth plan. < <Senator John Breaux (D-LA) Phone (202) 224-4623 < <Senator Mary Landrieu (D-LA) Phone (202) 224-5824 < <Please also take the time to FORWARD THIS MESSAGE to everyone you know who <will help the President get the economy moving again. < <To contact your Senators, go here <http://www.gopteamleader.com/findsenators.asp < <The debate over economic stimulus packages is plainly explained in a <November 16th op-ed appearing in the Washington Post: "The President wants <to create more jobs, while the Senate democrats propose entitlements. If <you were unemployed, which would you prefer?" ("Tax Cuts Are the Best <Stimulus" by R. Glenn Hubbard). The full article appears below and is <reprinted at <http://www.gopteamleader.com/hubbard.asp < <Tell your Senators TODAY that you'd prefer job creation. < <Sincerely, < <Jack Oliver <Deputy Chairman, Republican National Committee < < <************************************************ < <Tax Cuts Are the Best Stimulus < < <By R. Glenn Hubbard < <Washington Post <Friday, November 16, 2001; Page A47 < < <With most indicators of economic production, such as employment and <purchasing, showing further decline in October, some have argued that <President Bush's growth plan would have little stimulative effect. They <prefer the Senate Democrats' plan, on the grounds that spending is a better <way to revive the economy. < <Permit me to differ. The president's plan, included in the stimulus plan <passed by the House, addresses the nation's underlying economic problems. <If enacted, the tax cuts will quickly deliver a boost to move the economy <back toward its long-run growth path. The plan, it is estimated, would <result in 300,000 more jobs and add half a percentage point to the 2002 <growth rate. < <Here's how tax cuts help stimulate the economy. Tax cuts for individuals <give them more money to spend and invest. Tax cuts for business for three <years -- long enough to have a serious effect -- would make investment less <expensive, so businesses would be encouraged to buy equipment, increase <production and expand employment. < <It is a major fallacy to praise new spending plans as "stimulus." This <ignores the fact that a dollar spent by the government is one fewer that <can be spent by private businesses. Furthermore, new spending programs <almost never go away, and they lead to more inflexible regulation of the <economy. New spending programs are not only unlikely to make the economy <grow, they also are an undesirable response to terrorism risks. < <Instead, it is important to take advantage of the flexibility and <innovation of the private sector. This will reduce the negative effects on <job growth as part of our necessary response to terrorism. < <The real underlying economic problem is that the terrorist attacks took a <direct toll on the economy and, more important, on the confidence of <American households and firms. The combined effect tipped a fragile rate of <economic growth into negative territory. But the attacks did not undermine <long-term productivity growth, so economic fundamentals remain strong. < <The challenge is simply to restore the health of the economy quickly. And <Congress needs to do so in the way that will be most beneficial. Assistance <for dislocated workers is important, and the president has already proposed <an aggressive package to provide it. But spending should not be confused <with economic stimulus. < <The basic source of uncertainty and loss of consumer confidence is fear <over job loss, and the fact is that additional spending, even on <unemployment insurance won't give people jobs. Indeed, the excessive <expansion of unemployment insurance proposed by the Senate would actually <increase unemployment, because it would discourage job applicants from <accepting new positions. Moreover, the Senate bill would err by raising <taxes on employers -- exactly the wrong thing to do at this moment. < <Until one addresses the underlying source of the uncertainty, there will be <no guarantee that hemorrhaging federal dollars will do any good. Lower tax <rates are the best way to create jobs and make large and small businesses <grow. Acceleration of future tax cuts, which Congress has already chosen, <will help the economy. < <Despite the repeated claim that only poor households will spend additional <income, evidence indicates almost all households spend about the same <percentage of their tax cuts. Business tax relief is essential because it <encourages firms to expand investment and employment. With tax cuts, firms <would be able to replace existing machines with more productive ones, <precisely the kind of change that frees up funds to hire more workers. < <The economy needs help now. The president wants to create more jobs, while <the Senate proposes new entitlements. If you were unemployed, which would <you prefer? < <The writer is chairman of the President's Council of Economic Advisers. < <(Reprinted by permission of the author) < <************************************************ < <Paid for by the Republican National Committee. < <If you wish to unsubscribe from this newsletter, simply click here: <http://mail.echampions2000.com/GoNow/a14064a31344a56465125a0 < <To subscribe to this newsletter, please click here: <http://www.gopteamleader.com/signup.asp < _________________________________________________________________ Get your FREE download of MSN Explorer at http://explorer.msn.com/intl.asp
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