Well, Mr. Speaker, and to my distinguished colleague from Missouri, thank you so very much for the opportunity to be here. You're exactly right, and you've pointed it out so well. We have a disease here in Washington, and that disease is…
Well, Mr. Speaker, and to my distinguished colleague from Missouri, thank you so very much for the opportunity to be here. You're exactly right, and you've pointed it out so well. We have a disease here in Washington, and that disease is called ``overspending.'' And it is, by and large, what has brought us economically to where we are today. And the debt that we see is the symptom of that disease.
It's amazing to me how many in D.C., how many in the administration and in the previous Congress, really believe that we can borrow, tax, and spend our way back to prosperity. As a businessman, as a graduate from a business school--I have a minor in business administration--I don't think that there is a business theory in place that says that you can prosper that way.
That's right. You know, that kind of thinking has never been good for families. It has never been good for businesses, and it certainly is not good for America. We see where that has left us. Your charts point out that we are on the path to a train wreck here. Yet we see policies
consistently coming out of the administration and out of the previous Congress that continue to punish the job creators.
Take Ohio for example. Since the giant stimulus bill was passed in the previous session of Congress, only three States have lost more jobs than the State I come from, from the great State of Ohio. Unemployment in the district that I represent is another symptom of that disease. We cannot continue down this track of spending and borrowing and punishing job creators and expect America to pull through this economic crisis that we find ourselves in.
Thanks.
You hit the nail on the head. We are punishing the job creators. I mentioned in Ohio, only three States have lost more jobs since that stimulus bill went into effect. Now, I don't know the exact number today, but in November, around election time, Ohio had lost over 400,000 jobs.
Absolutely. Absolutely.
And here is what puzzles me: I don't understand why more don't realize that when you let families and businesses keep more of their hard-earned money, that builds economic confidence. That builds buying power. They invest. They spend more. That's what gets an economy going. They begin to become innovative.
Let me give you an example. Ohio borders on a State that has no sales tax on clothing. One of the first things I saw when I started looking at how I could help the State of Ohio was: How can we keep that sales tax revenue in the State of Ohio? So we started doing the research. We found out that 17 States have sales tax holiday programs.
So I built a grassroots effort to put a sales tax holiday program in place in Ohio. Without going into excruciating detail, having a sales tax holiday around back-to-school time and a sales tax holiday around Christmastime promised to bring upwards of $250 million in additional sales tax revenue into the State coffer, keep retail jobs, and let Ohio families keep more of their money. It was amazing what that program would do. Yet we could not get those on the other side of the aisle in Ohio to understand that and to buy into that concept. It is a simple economic concept.
Absolutely.
No, I was not. I built a grassroots effort to try to address that problem. We were successful in getting a bill introduced into the Ohio State Legislature to put those sales tax programs in place, but it never made it through the system.
Well, you've made so many points there.
I'm a businessman. After my military career, I founded two small businesses. Before I came to Congress, I was the chief information officer for a business, a global manufacturing company; and I sat at the table with our executive leadership team, and we talked about how do we increase the value to our shareholders; how do we make our company more profitable; how do we put ourselves in a position to be able to invest and grow.
There are two sides to that formula.
On one side, you've got spending. On the other side, you've got revenue. There is a balancing act. Controlling spending, we've talked about. We've got to stop the out-of-control spending here in Washington, and we're going to address that in this Congress.
But how do we increase the revenue? That is what you've been talking about here for the last few minutes. And you're exactly right, it does not come through tax increases; it comes through letting Americans and businesses keep more of their money because that builds economic buying power, that builds confidence. They invest; they spend.
Now when we did our research on the sales tax holiday back in 2009, what we learned is there were 17 States that had already implemented a sales tax holiday which validated the concept that you just referred to. Take one State, for example, implemented their sales tax holiday in the very first year. In the month that they implemented that sales tax holiday they saw an overall--now there were adversaries that said you can't take that sales tax revenue out of the coffer at a time when we are struggling to meet the State budget. Fortunately, sound minds prevailed and they were able to get the bill through. And in the month that they passed that bill and they had that sales tax holiday, their overall sales tax revenues did not decline; they went up nearly 5 percent.
That's right.
Well, what it was, it eliminated sales tax on certain items like back-to-school items, things that people had to have to get their kids back in school, to put them in college and those kinds of things--clothing, school supplies, computers. For example, many States included computers in those sales tax holidays.
Over the next year, they saw another nearly 5 percent increase in the overall sales tax revenues. By the third year, they saw a nearly 8 percent increase in sales tax revenues. And over a 3-year period, they were looking at close to 20 percent overall sales tax revenue increases over that 3-year period.
Because what happened was when people got a tax break on things that they had to have, they would channel those savings into buying things that they wanted to have and that they had been saving up for with their families. And other States started coming across the border to take advantage of that holiday. It's a simple concept that we need others to understand: when you let families and businesses keep more of their money and you put the decision about how they spend that money in their hands, America prospers.
Well, you hit the nail on the head again. National defense is our number one priority; it has to be. In fact, the oath of office that you and I took on January 5, virtually the same oath of office that the President takes, it says that we swore or affirmed to support and defend the Constitution of the United States against all enemies foreign and domestic. That requirement to provide for the national defense is the number one most important thing that we in the Congress, in the administration are required to do, keep America safe, keep America free, protect Americans and American interests around the world.
There is no question that we must invest in those programs that are going to support our troops in the field. And I agree with you that we must look at the proper balance between defense spending and other spending to make sure that we achieve what we have been charged by the American people to do.
Well, I often ask my constituents, what is our number one job? What is the President's number one job? Is it to keep us safe, or is it to keep us free? And of course you get a number of different hands being raised. In my opinion, based on the Constitution, the Declaration of Independence, the President's--and therefore the Congress'--number one responsibility is to keep us free, because if we are not free, we will never be truly safe.
And safety is obviously pretty close on the same level. And they play into one another. But our national defense, flowing down from our national security strategy, our national strategy, that's paramount.
I wanted to comment on what you said and what the gentleman here said about what makes America great.
When people stop to consider that this little sapling of a Nation in terms of age, 230-plus years old, virtually--and we're a baby compared to many of the other nations in the world--yet every modern convenience, virtually every modern convenience known to mankind was birthed right here in this country. And why was that? It was because of that system of free enterprise based on individual freedom. The ability to pursue our dreams, the ability to innovate that created this free enterprise system that we've come to know.
It did not come about in the Halls of Congress. It was not discovered in the deliberation rooms of courtrooms.
It was discovered around the campfires and around the dining room tables, the kitchen tables, the fields, the factories. As America came along, we learned when individuals are allowed to pursue their dreams in an environment of freedom without an oppressive Federal Government taxing them into oblivion, everybody wins. America wins, our allies win, everybody wins.
I will just sum up with this, because I think you have hit the nail on the head. We can cure this disease. It's called stopping the out-of-control spending. And at every opportunity, we should seek ways to allow American families and American businesses to keep more of their hard-earned money. That's going to result in economic confidence. That's going to result in investment. That's going to result in increased consumer confidence, and it's going to increase and create jobs, and we know that.
I urge my colleagues--I thank you for this time, and I urge my colleagues to join with me in supporting the legislation and those policies that are going to accomplish those goals: cutting the spending, letting Americans keep more of their hard-earned money, and ultimately creating jobs and putting America back to work. And I want to thank you for the opportunity today.