Wednesday, January 7, 2004

President’s tax cut plan worked

By DYLAN GLENN
8th District Congressional candidate

During this holiday season and on the eve an election year, it seems appropriate to take stock of the state of affairs in America, particularly as they relate to the economy. To that end, it is incumbent upon those still doubting the country is in the midst of an economic recovery, to understand some basic facts.

First, when President Bush took office, the economy was in recession. There is simply no question that the economy shifted into low gear during the second half of the last Presidential election year 2000.

Candidate George W. Bush campaigned on the need for meaningful, broad-based tax relief as insurance against a recession. And, President George W. Bush not only talked the talk, but he walked the walk, by pursuing the largest tax cut in a generation.

The President delivered, cutting taxes for everyone who pays taxes in America and providing a typical Georgia family of four with a tax break of at least $1,600.

Under the President’s leadership, Congress enacted $1.3 trillion of tax relief in record time, and it did so in a bipartisan fashion with 12 Senate Democrats joining to support the measure.

With this great fiscal and monetary stimulus in the pipeline, most economists were predicting a sluggish but stronger economy for the second half of 2001. Then, America was attacked on Sept. 11.

That terribly tragic day saw murderers flying planes into buildings and killing innocent people sitting at their desk at the Pentagon or in their offices in the towers of the World Trade Center.

This act of terrorism pushed the American economy into recession. The damage to the fragile economy was undeniable: Financial markets closed, decline in asset prices, airlines shut down, supply chain disruptions and consumer and business confidence eroded. The President’s response not only insured our national security interests but he protected our economic security with his tax policy.

President Bush’s second major tax cut, signed into law this past May, is continuing to fuel overall growth in the economy. The tax cuts produced the highest quarterly growth of the economy in 20 years, a staggering 8.2 percent for the third quarter.

And, while the first Bush tax cut targeted families and individuals, this effort focused on small businesses, the engine of economic growth in America.

Increased small business expensing from $25,000 to $100,000 allowing greater deductions for small business to invest, coupled with capital gains reduction to 15 percent and an additional bonus depreciation increase, all have combined to stimulate growth.

The result is an economy that is growing at a rapid pace and the evidence is clear: the U.S. stock markets have added more than $2 trillion in value since January with the Dow over 10,000, approaching 52-week highs.

Orders for manufacturing goods are up. The housing market is strong and homeownership is at its highest level ever. Productivity remains strong and, perhaps most importantly, consumer and business confidence is high.

As we reflect on the year that has been and look forward to the challenges of the New Year, we can certainly be heartened that the U.S. economy is back on track. Thanks in large part to the pro-growth tax relief signed by this President, the U.S. economy is enjoying a robust recovery that will benefit all Americans.

And, as a former member of the President’s economic team, I am proud of the fact that President Bush’s policy prescriptions have been the absolutely correct tonic for an economy rebounding from a bursting of stock market bubble, the attacks of Sept. 11, 2001 and corporate scandals of 2002.

[Dylan Coburn Glenn was sworn in as deputy chief of staff to Gov. Sonny Perdue on Inauguration Day, 2003. A native Georgian, Glenn returned to his home state this year after serving two years as special assistant to the President of the United States. At the White House, he was a member of the National Economic Council team advising the President on various economic concerns. He grew up in Columbus, Ga., the son of Spurgeon and Fleda Glenn. He attended Pacelli High School in Columbus before going on to The Episcopal High School in Alexandria, Va., and he received his BA degree from Davidson College in North Carolina in 1991. He is a candidate for the Republican nomination to Congress in the Eighth Congressional District.]