Audio: FreedomWorks Supports Long Term Aspects of Stimulus Plan

    WASHINGTON, Jan. 23 /PRNewswire/ -- President Bush and Congress have
 pledged to enact an economic package aimed at boosting the sluggish
 economy. On Friday President Bush outlined the principles of his economic
 stimulus plan.
 
 

     To view the Multimedia News Release, go to:
     http://www.prnewswire.com/mnr/freedomworks/31525/
     FreedomWorks Chief Economist Dr. Wayne Brough commented:
 
     "The return to a serious discussion about the economy is refreshing,
 but policy must focus on the fundamentals for long run economic growth, not
 short term spending. The President Bush's call for permanent tax reform is
 an important step forward in that regard and his warning not to increase
 taxes or spending is also significant. However, efforts for a temporary
 boost in near term spending are not as likely to be effective. The notion
 that the government can boost the economy by collecting taxes from one
 group and then redistributing that money to others is outdated and wrong.
 Borrowing against future tax revenues to provide temporary, election-year
 rebate checks is not sound public policy and adds to the debt America is
 placing on future generations."
 
     Nothing can provide an economic stimulus as a permanent reduction in
 the overall tax burden. One serious proposal, the Middle Class Jobs
 Protection Act, was introduced by Congressman Eric Cantor (R-N.J.) earlier
 this week.
 
     Representative Cantor's plan would slash corporate taxes from 35
 percent to 25 percent, and would strengthen the economy and improve
 American global competitiveness while creating new jobs.
 
     Other ideas under consideration are well-intended but will create new
 risks for taxpayers. For example, President Bush is calling for an
 expansion of the size and scope of the Federal Housing Administration to
 address the slowdown in the housing market. However, the most effective way
 of dealing with the current slowdown it is to let the market correct
 itself. FreedomWorks is concerned that new regulations would have the
 effect of a government bailout of lenders and overextended homeowners.
 
     Dr. Brough noted:
 
     "Congress should be wary of imposing new regulations or exposing
 taxpayers to new liabilities in the housing market. A rush for federal
 intervention sends the wrong signal that risky behavior will be subsidized
 while making it more difficult for consumers trying to purchase a home. The
 market is in a correction, sorting out the missteps of the recent run-up in
 the housing sector. It is a costly and sometimes painful process, but
 increased federal involvement may not necessarily improve upon the
 outcome."
 
 
 

SOURCE FreedomWorks