Intelligence Committee Reorganization
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. I thank the Senator from Iowa for clarifying that. The Economy We are here today at the end of the session. We have some important legislation yet to…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
I thank the Senator from Iowa for clarifying that.
The Economy
We are here today at the end of the session. We have some important legislation yet to act on: this legislation that deals with the economic health of this country; it is legislation that deals with the security of this country. We have been working all session on these two issues primarily, with a plethora of other issues, but we do have some very important bills. The FSC/ETI bill is important, obviously, to sustaining and continuing the economic growth. We have the intelligence bill, the conference report. That is important for the security of this country. We have the Department of Defense authorization bill, which we are still waiting to get passed out of the Senate, the conference report to that. That is also very important.
I will talk a little bit about our economy because today an economic report came out. When we look at this economic report with all that has been happening through 2004, I don't see how anyone can deny this has not been a good year for America's economy.
I think back a little bit when President Bush was elected President and what kind of economy he inherited from the Clinton administration. The economy was going down. It was not doing well. As a result of that, the President decided to address the economic growth of this country and put in place tax cuts that did make a difference. There were 3 years of tax cuts put in place that took the burden of government off of the people of this country, and they produced.
The sector of this economy that produces more jobs than any other is the small business sector. I know because I came from that sector. As a veterinarian, I had my own veterinarian practice, my small business, and I know how taxes can impact the bottom line of the business and how it can affect whether you have any capital remaining to buy new equipment. A lot of new ideas, or creation, comes out of small business, and too much regulation has an impact.
In some ways, with the security challenges this country has faced, we have had to put in rules and regulations for business to be able to sustain their growth and create jobs.
The real choice we have is to do something about the tax burden. It has been working. I will share some of those figures that came out today.
America's economy is doing much better than just good. It has been doing really good. Since August of 2003, more than 1.5 million jobs have been created; 1.3 million jobs in 2004 alone. The unemployment rate of 5.4 percent today is well above the average employment rate of the 1970s, the 1980s, and the 1990s. For the last 12 months, the American economy has grown faster than the economy of any major industrial nation.
Today's Department of Labor and Bureau of Labor Statistics report, which, by the way, measures payroll--that is an important distinction that I will talk about later--according to that report, the economy added 96,000 new payroll jobs in September, continuing an upward trend in job creation. Employment gains over the last 4 months totaled more than 405,000, and this year the economy has added an average of 170,000 jobs per month. Manufacturers have increased hiring in 6 of the last 9 months and are responsible for more than 70,000 jobs so far this year. And we still have October, November, and December to go.
Unemployment remains steady at 5.4 percent, exactly where it was when President Clinton was reelected in 1996. Unemployment peaked more than a year ago in June of 2003 at 6.3 percent, and the labor force has increased by almost 950,000. The overall number of unemployed has fallen dramatically by 1.2 million since June of 2003. The economic policy of this President, what we have been doing in Congress, has been working.
I will take a little time and talk about the other survey that we have out there, the household survey. There are some remarkable things happening in the household survey. It has increased more than 2.2 million since April of 2003. Those are fantastic figures. They reflect the self-employed. They reflect people who work on a part-time basis. They reflect people who work out of their homes for various reasons-- maybe they have a high-tech business and work through eBay to market some products that they have available, or perhaps they are real estate salesmen who have been working out of their home. This gets measured in the household survey.
The household survey measures much more of our economy than just the labor payroll report. That is exciting. During those times when we had some layoffs in the high-tech industry and went through the high-tech slump, people who lost those jobs said, we are getting some bonuses because when they were asked to leave the company they frequently gave them a bonus and they took some of the money to start their own business.
The most logical place to start a small business is out of your home if you can make it work. That is where most of them started their business. You keep your overhead down. You have a phone, you can hook it to the phone line. You can work out of there. What little money you earn you can put it back in the business or put it aside and hopefully buy more equipment and maybe move into a larger
building at some point in time when that business takes off and begins to operate.
So I think it is important to point out that the payroll numbers, as strong as they are, do not reflect the growth of self-employment. According to the household survey, employment has increased by more than 2.2 million, as I said earlier, since April 2003. Again, these are fabulous figures. It reflects the ingenuity of a small businessperson who decides he wants to go out there and apply the American dream. He wants to start his own business. He wants to be self-employed. He wants to be independent. And he wants to be his own boss.
I think America is on the right track.
Now, the National Bureau of Economic Research determined that the latest recession ended in November of 2001, well after this President was sworn into office. Today's numbers are further evidence that the doom and gloom of those challenging the policies of this President is simply unfounded.
We have created and we are witnessing the impact of policies that encourage growth. What did we do? We lowered tax rates on personal income for all taxpayers. The top marginal rate was reduced from 39.6 percent to 35 percent, and a 10-percent bracket was introduced. Where did the real impact of this fall? It fell on small businesses in this country. It helped them grow and prosper. It helped them create a lot of the figures you are seeing out of the household survey--favorable figures, fabulous figures, I might add.
We lowered taxes on business investment, including a much lower tax rate, 15 percent, on dividends and on long-term capital gains. Of great importance is the tax cuts allowed businesses to more quickly deduct the expenses of their investments in machinery, computers, and software. American companies have responded by employing more people and investing more money in equipment and facilities. And in what part of the business sector will you see most of that happening? You will see it happening in the small business sector.
Now, small businesses, they can be organized in a number of different ways. They can be organized as individual entrepreneurs. They can be organized as partnerships, various legal organizations. Family businesses will even incorporate. Professionals like myself, we have professional corporations that we organize in. So when we talk about separating business out into various sectors, no matter how you do it, somehow you are going to affect the small business community, where we see most of our economic growth.
So we have to be careful about attacking corporations and attacking businesses in general because they do create the jobs in this economy. They create employment. They are what America is all about; that is, the principle of free enterprise and people holding their own property and being able to move themselves up in society.
Another thing that happened to help keep our economy moving was the increased child tax credit from $500 to $1,000 per child. We also ended the marriage penalty. Married couples no longer pay higher taxes than equivalent singles, which eliminates a perverse incentive against marriage.
We also repealed the estate tax. Probably the most unfair tax we have in this country is the estate tax because the estate tax has been taxed once already, and sometimes taxed twice, and then when you die it becomes a death tax and you have to pay again.
When a family, a small business family in many cases, is struggling to try to get that small business to sustain itself during an untimely death in the family, then along comes the estate tax and whacks that family hard. Many times these are farmers and ranchers who have been struggling to try to save their farm or ranch. In States such as Colorado, where we are getting a lot of rapid growth, there is a demand for real estate, and many times these farmers and ranchers are forced to sell to developers or somebody else who is going to use that land for something else other than the production of crops and livestock. The end result is, we lose an opportunity to have an open space available in States like Colorado where there is a desire to have a considerable amount of open space.
Home ownership is at an alltime high. I am pleased to be able to join with the President in putting forth the American Dream Downpayment Act, where we provide some well-deserved dollars to people, first-time home buyers, in this country. This is for people who have been paying rent who could be owning the same type of dwelling except that the only problem keeping them out of their own house, their own personal dwelling, is the fact that they cannot make the downpayment. So this piece of legislation was desired to help those individuals. By the way, many of them are minorities. As a result of that act, we are beginning to see a lot of growth in home ownership, and particularly among minorities it is getting much better.
There are a lot of positive effects that happen with home ownership. The children tend to be better educated. They become better citizens in their communities. They tend to be more stable. They are not moving around as much. They care; they take an active role in what is happening in their community.
Home ownership is another good story that is coming out of this administration. Sometimes I just do not think we talk enough about it, but it is important. It is important to communities, and it is important to families.
So I summarize and say the good news today is something we need to work hard to sustain. It is important we draw this session to a close. We have some important pending legislation. We need to get that passed because it will help contribute to the continued growth of this country as far as the economy is concerned. It will help to continue to make America more secure, and it will help because we need to have a strong defense for this country.
Today's numbers, again, are good news, part of a healthy, steady trend of growth and prosperity.
I yield back my time, Mr. President.