Putting America Back On The Right Track Economically
Well, first of all, I want to thank my good friend from Missouri for hosting this hour. This is a very important issue. We are facing, without action and intervention, the largest tax increase in the history of our country. And the Laffer…
Well, first of all, I want to thank my good friend from Missouri for hosting this hour. This is a very important issue. We are facing, without action and intervention, the largest tax increase in the history of our country. And the Laffer Curve and the professor that put that together, very smart man. And I think it's very telling. I think that actually it could be named, take a little creative license, and in addition to being a Laffer Curve, a curve of uncertainty, or certainty.
Because there is some point in there, and you have already mentioned that word, that you either have certainty in the economy, and jobs are created, and economic development happens, or you have uncertainty and things come to a screeching halt. And that's what we've seen over this past 2 years-plus in terms of the economy. And that's jobs.
And the one thing I tell people, or what I hear when I go around and I talk with the people at home--frankly, I talk with the people who are the job creators--it's uncertainty in the economy. And a lot of that has to do with taxes. They don't know what taxes are coming. They have been not just these--and some people will call these the Bush era tax cuts. Frankly, I will call them the people's tax cuts. We have been enjoying them for almost a decade now. It's been money in the pockets of the people at home. They are making decisions.
But it's not just those; it's all the taxes that have been layered on bill after bill by this Democratic Congress over the past 2 years. And I've talked with many people who are--normally every year they will take part of their profit--and that's not a bad word. That's a good word. That's what's made our country strong. And they will take that profit, and they will reinvest it in their businesses.
They will build a new location or they will add a service line or a product line or maybe they are just repacking something, yes, freshen it up, and they hire people. When they do that, they create prosperity, they create jobs, and they are sitting on the sidelines right now. And a big part of that has to do, I believe, with these taxes, that with no intervention by January 1, the largest tax increase in the history of our country goes into place.
Pennsylvania folks and Missouri folks think the same way.
Well, I thank my good friend for dusting that chart off and bringing it out tonight. I think we need to reproduce that and get that in every one of the 435 offices because, you know, I've tried to lead my life by principles, and one of them has been the principle that the best predictor of future performance is past performance.
And here we are looming days until we have this Nation's largest tax increase in history, and what a great chart to be able to show the practical impact on job creation that tax cuts make, because you've got the documentation right there. You show it, pre-tax cuts, and you show it post-tax cuts. And the results are astounding.
We're talking jobs. And I don't--there's few issues and problems that we face, that our families face, and individuals in this country face that can't be solved by a good job. Period. Health care, economic issues, they're just so important. And I'm very appreciative, a little surprised, but I'm appreciative of the leadership that the President has shown in the past week or so in terms of really what appears to be--and I have to tell you in the first bipartisan real true bipartisanship that I've seen my first 2 years here in Congress.
Yeah. And the fact is, and it seems like he's embraced, he's figured out who those job creators are. I mean, our colleagues on the other side of the aisle, they'll be the first to, and I'm sure when we get into, more into this debate, you're going to hear them talking about all we're doing is providing tax relief for the wealthy, and the top 2 percent of wage earners in this country fall into that category. It's, by definition, it's people that make $200,000 or more a year and file their taxes individually, or $250,000 and file jointly with their spouse. And you know, in my congressional district, and I suspect in yours, that's a lot of money.
But when we really look and drill down a little further and see exactly who those people are, and it's amazing to me to find that it's the people that are reflected on that chart with creating, it's the job creators that created those jobs that showed up after those tax cuts in 2003, 2004, 2005, 2006, 2007, because 60 percent of those folks or more are people who organized their businesses as a sole proprietorship, a limited liability corporation, or a sub chapter corporation. And they pay their taxes as an individual.
So, yeah, maybe they make $200,000 as an individual or $250,000, but out of that, they make a payroll. They create jobs. They provide prosperity, both for themselves, and there's nothing wrong with that. That's the American Dream, to work hard, to take risk, to sacrifice and to achieve great things. That's the American Dream. And so that needs to be rewarded.
But also they create prosperity for other people. Those are the job creators. And I am so thankful that President Obama has, in a very enlightened way, embraced that in coming together in this bipartisanship of his making, extending these tax cuts.
Now, honestly, I would really like to see, if I had, if I was king for the day, and I think you all would agree, we'd make them permanent because that's the best way to provide continued certainty in the future. But this is Washington.
They do that in forecasting, and they build their business plans and their business models.
I appreciate that.
For my whole life as a young boy, I grew up in a family-owned sporting goods business. It wasn't a very big operation. It really was my mom and dad, a brother and a sister. The store was open 7 days a week and for 12-hour days. As a teenager, I remember I had the 6 a.m. shift on Saturday mornings.
I felt like I was getting up in the middle of night back then. In the hunting season, there was ammunition and supplies. In the fishing season, it was bait and minnows; but it was a wonderful way to grow up and to be able to see and to live the private sector, because that's what it was. We were immersed in it, and it was very positive from that standpoint of interacting with the public.
At the same time, it was a front row seat on just how many burdens the government can layer on business and on jobs. Whether it was taxes, whether it was regulations, they were just incredible, incredible burdens.
You know, I guess I have very fond memories, but I have some very useful
lessons that I take from those early years. I then went on into health care and created jobs and managed rehabilitation services and worked within a skilled nursing facility.
We're talking taxes tonight and the impending, looming taxes that will go into effect here January 1.
Probably about 2 months ago, I was in Titusville, Pennsylvania; it's where one of my district offices is. We just happened to be having an event there one evening. Titusville may sound familiar to those who remember their history. That's where we drilled oil for the first time anywhere in the world in Titusville, Pennsylvania, 150 years ago. We are very proud of that. We call it the valley that changed the world with the discovery of oil. But I was talking----
Yes, absolutely. This is our 151st anniversary.
But I was talking with an individual whose family actually had roots maybe going back 151 years. I was talking with this gentleman, and he has a family business. His family has been in this business for at least 100 years or more. And he talked about how just during his lifetime--now this is just his lifetime--he has had to purchase his family business from the government three times, every time a generation has passed away. That's just morally wrong, and it's economically stupid. The fact is this is a company that has, for over a century, created and provided really good jobs for that community, for that part of Pennsylvania.
Because of the--I guess the official word is the ``estate'' tax.
I like to call it what it is: it's a death tax. And we know that today, as a result of these tax cuts, the schedule that was set up almost 10 years ago, for someone that passes away in 2010, the death tax is zero percent.
Which is a part of the American Dream.
No, you're making great points. And I think those are points the American people understand, that the American Dream is you work hard, you sacrifice, you take risk, you accumulate wealth, you make profit, and you want to pass it along to your children or grandchildren. You want to provide for them. That is the American way, it's the American Dream. And what does the government do? The government comes in and takes a large portion of it back.
There have got to be a lot of people right now thinking that it would be much better, more convenient to die between now and December 31 because the estate, the death tax is zero percent. But if you are unfortunate enough and you die 1 minute after midnight on January 1, it's 55 percent. If you think about someone that owns a business like that gentleman, or a family farm for that matter, I mean, what part of a business or a farm do you sell, do you liquidate in order to come up with 55 percent? If it's a farm, do you sell the livestock? Do you sell the barn, the outbuildings, the acreage, the crops, the equipment, the resources, the inventory? If you sell any of those, you don't have a business or you don't have a farm. And frankly, people don't have jobs because we drive those jobs out. I think there are many taxes like that, but that is just one of the most egregious ones and it's coming back.
Sure. Just real briefly, you had a chart there that showed a lot of different spending schemes, health care, IMF bailout, the bank bailout, the omnibus. We're talking billions of dollars are being spent and all in the name of supposedly good causes. I question many of those as being very ineffective.
I think the absolute best economic stimulus that we could have is extending these tax cuts. I think that what happens as a result of that is it provides some certainty back into businesses, especially those 2.1 million small businesses that create 60, 70 percent of our jobs that you referenced, Mr. Akin. And I think if we create that certainty, we're going to see a lot of business plans take off. And what we're going to see is unemployment will go down because jobs will be created, and people will have more prosperity, and that will solve a lot of problems that we're experiencing currently.