John Boehner, May 12, 2006

It isn’t rocket science. The best way to jumpstart the economy is by putting more money right back into the pockets of those who spend it: taxpayers themselves. In 2003, President Bush and Congress set out to do just that by lowering income tax rates, reducing the marriage penalty and death tax, increasing the child tax credit, and offering tax credits for hard-working teachers for education-related expenses.

The result has been nothing short of spectacular. Since August 2003, the economy has created nearly 5.3 million new jobs and has experienced 32 consecutive months of job growth. The unemployment rate is below the average of the 1960s, 70s, 80s, and 90s. The economy is expanding at a blistering pace, and the greater-than-expected tax revenues that are flooding the coffers of the federal government are working to reduce the deficit, says the Congressional Budget Office (CBO).

To keep the economic boom going, Congress voted last week to approve an agreement extending tax cuts for middle-income families and small businesses. With the economy firing on all cylinders, the time was right for action in order to prevent massive tax hikes that would cripple job creation and discourage business investment.

Of course, not everyone thinks the tax cut package was a great idea. Critics play up the class-warfare card by blithely declaring tax cuts only help “the rich.” Many of these critics also claim the tax cuts have caused our deficit. Both claims are plainly false.

For example, even though their tax rates were lowered, “the rich” have ended up paying even MORE to the federal government because of the economic growth spurred by the tax cuts.

According to the Wall Street Journal, the dollar amount paid in taxes by the richest three percent of Americans increased at twice the rate of everyone else since 2001. Those same individuals now pay nearly as much in income taxes as the other 97 percent of the population combined. As the Wall Street Journal wrote, “While the incomes of the rich have risen, the lower 2003 tax rates are still soaking them for the government's benefit.”

Meanwhile, the tax cuts have benefited millions of working Americans and small businesses. Investment tax relief benefits 57 million families who own stocks either directly or indirectly.

Income limits have been set to keep the alternative minimum tax (AMT) from sopping more money from working families.

Lower taxes on dividends are good news for the more than 35 million Americans, particularly nine million seniors, who rely on dividend income.

Small businesses will be able to continue expensing up to $100,000 of investments in depreciable assets (that number would have dropped to $25,000 without the tax cut bill).

And the federal government isn’t hurting for cash. On the contrary, tax receipts are at an all-time high. Tax revenue increased by nearly 15 percent in 2005; so far, it’s up more than 11 percent for 2006. In other words, the primarily culprit responsible for all of the red ink in Washington hasn’t been too little money -- it’s been too much spending.

Unfortunately, it seems that once election year politics grip some people, there’s no turning back. Many of the same critics who decry the tax cuts also voted AGAINST recent earmark reforms aimed at changing the way Congress spends taxpayer dollars, reducing the number of earmarks, and promoting greater fiscal responsibility. Many even voted AGAINST recent efforts to increase America’s domestic supply of energy, which would lower costs for consumers and businesses and provide another shot in the arm for the economy.

Even in an election year, it isn’t rocket science: tax cuts are the right fuel for a booming economy.

Congressman John Boehner is the House Majority Leader. Boehner, a Republican, represents Ohio's Eighth Congressional District, which includes Miami, Butler, Preble, Darke, and Mercer Counties.