Madam Speaker, all of us join with our colleague in honoring that fallen hero. Madam Speaker, Congress must act now to extend the payroll tax cut, unemployment insurance, and domestic renewable energy tax incentives. The effects of the…
Madam Speaker, all of us join with our colleague in honoring that fallen hero.
Madam Speaker, Congress must act now to extend the payroll tax cut, unemployment insurance, and domestic renewable energy tax incentives. The effects of the Great Recession continue to linger in this economy, which is why a more robust recovery has not yet taken root.
Our efforts in the last Congress, through the Recovery Act and the Job Creation Act at the end of last year, provided what momentum we actually have. The official unemployment rate has now fallen to 8.6 percent as a result of 120,000 new jobs created just last month. That's the lowest level in more than 2 years and marks 21 consecutive months of private sector job growth. But these gains will be at risk if Congress fails to extend the payroll tax cuts, domestic clean energy incentives, and unemployment benefits before the end of this year.
The payroll tax cut provides the average American worker $1,000 to spend or invest every year, having a positive impact throughout the economy. Economic analysts at Barclays estimate that the payroll tax cut alone will add another 1 percent to gross domestic product growth, $250 billion in economic activity throughout the United States. Conversely, if we fail to extend that payroll tax cut, 160 million Americans will be facing a tax increase in January.
Similarly, 1.3 million Americans who are trying to get back into the workforce will see their unemployment benefits cut unless we renew them. According to the Congressional Budget Office and Senator John McCain's economic adviser, Mark Zandi, unemployment insurance is one of the most effective forms of economic stimulus, generating $1.64 for every $1 we invest in unemployment insurance. Failure to extend unemployment benefits will reduce the gross domestic product by nearly 1 percent and, by reducing economic activity, could put as many as 1 million Americans out of work at a time when we're trying to expand the economy.
With respect to domestic clean energy production, renewing these incentives will sustain one of the few private sector success stories we've witnessed during the Great Recession. Since 2007, the number of jobs in the American wind industry has grown 70 percent. So today there are as many wind energy jobs as there are in the coal industry. The number of solar industry jobs doubled since 2007 to more than 100,000 Americans. This surge in domestic clean energy employment is a direct result of the 1603 Treasury Grant Program to support clean energy activity.
Madam Speaker, as we continue to debate these expiring tax and benefit provisions, I'd caution my colleagues against holding them hostage to advance some extreme ideological agenda. Last week, the Senate minority leader brought legislation to the floor which would have slashed Federal employee wages and benefits while arbitrarily downsizing the Federal workforce.
As the Bureau of Labor Statistics noted, public sector employment continues to shrink by tens of thousands of jobs. A job is a job, whether it's in the public sector or the private sector. One is not better than the other.
If Republicans had not been successful in cutting 535,000 public sector jobs in this country, unemployment would actually be 0.35 percent lower. It would be down to 8.25 percent today, not 8.6. Cutting Federal employee pay and slashing the workforce would actually undermine the economic benefits of the payroll tax extension and the economic benefits we've all worked so hard to create.
Similarly, we should reject attempts to tie these economic recovery actions with partisan proposals to gut the Clean Air Act. Republicans in the House already have tried to pass 172 viciously anti- environmental bills, riders, and amendment in this body this year alone. Now, some in the Republican Caucus have suggested pairing the Clean Air Act repeals with an extension of the payroll tax cut, a Faustian bargain at best, Madam Speaker.
Repealing these Clean Air Act standards for industrial boilers, for example, would cost the U.S. economy $21 billion to $52 billion per year in higher health care costs, real costs to the economy.
Not surprisingly, some even have proposed expediting approval of the Keystone XL pipeline in exchange for the payroll tax extension. Again, we already have pipelines from Canadian tar
sands into America. According to independent economic analyses, the Keystone pipeline could increase exports of Canadian oil, not to the United States, but to China. I want to keep that oil here in this economy if we're going to build that pipeline.
Madam Speaker, the Republican leadership's legislative sausage would shock Upton Sinclair, who wrote ``The Jungle'' 100 years ago. He said, It's difficult to get a man to understand something when his salary depends on his not understanding.
Instead of wrapping special interest policy-riders and polluter giveaways into a tax-extender package, Congress should focus on those policies which are demonstrated job creators: payroll tax cuts, domestic clean energy incentives, and unemployment insurance extension.
The economic recovery is too fragile, Madam Speaker, to risk on the higher health care costs, higher gas prices, and economic hardships that some of these Republican proposals would otherwise create.