>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.
>
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