America's Economy: Rising to our New Challenges Senator Daschle Outlines A New Growth Agenda for the American Economy
On Friday, January 4, in a speech at the Center for National Policy, Senate Majority Leader Tom Daschle will outline a comprehensive growth agenda for America's economy. The plan is aimed at fostering economic growth and job creation on the foundation of fiscal responsibility. Senator Daschle's remarks will outline our current economic condition, and present a seven point plan to restore fiscal responsibility, create jobs, and get America's economy growing.
The seven points include: a real economic recovery plan; strengthening our homeland security; fiscal responsibility to lower interest rates; investments in education, training, and technology; opening new markets; a balanced national energy plan; and a renewed commitment to retirement security.
Following are excerpts from Senator Daschle's prepared text: "We have the most productive, most innovative workers in the world, and the most advanced technologies. We are the people who pioneer new ideas and break new ground -- the nation that attempts the impossible and succeeds over and over again. If we can root out a network of terrorists hiding in caves half a world away, we can solve the problems in our own economy."
"Today, I would like to make a case for a return to fiscal responsibility and a comprehensive plan for economic growth." "We don't just need an economic stimulus plan. We need a comprehensive plan for economic growth. The most important thing we should do as part of that plan is restore long-term fiscal integrity to our budget, so we can bring long-term interest rates down. In a real sense, low interest rates are the best possible tax cut. They help families afford college, buy cars, purchase homes and pay off credit card debt. Monetary policy -- alone -- can't bring down long-term interest rates if our long-term budget outlook remains so precarious. The federal government needs to show the markets that it has not abandoned fiscal discipline, but is still committed to it." "At a time when we need to fight both a war and a recession, when our nation has urgent needs on all fronts, the tax cut has taken away our flexibility and left us with only two choices -- both of them bad. We can shortchange critical needs, such as strengthening homeland security, or we can raid the Social Security surplus and borrow money to pay for them. We cannot have it both ways. And we should not be in this position. A year ago, we had the resources and the flexibility to make virtually any urgent investment we needed. We do not have that flexibility and those resources today because Republicans chose ideology over experience."
"Democrats see things differently. We support tax cuts that work - but we want to make sure that any tax cuts we pass don't threaten the Social Security or Medicare reserves, crowd out other critical investments, or drive us deeper into debt."
"By returning to fiscal discipline and putting partisanship, politics and ideology aside for the good of our nation, we can craft a plan that leads us back to fiscal integrity and that promotes economic growth and opportunity for all Americans."
THE DASCHLE GROWTH AGENDA FOR AMERICA'S ECONOMY
1) A Real Short-Term Recovery Package
The recovery package should be comprised of only measures that will promote economic activity now, when the economy needs it, and nothing that will worsen our long-term budget position, including:
A new Job Creation Tax Credit to help businesses put Americans back to work. Those companies that put more people to work this year will get a tax cut. Mechanically, if their payroll taxes are higher this year than last, they will be refunded through the corporate income tax for the difference. A substantial one-year depreciation bonus - 40 percent for the first six months and 20 percent for the second - in order to encourage high technology and other investments this year. Extended carry-backs of net operating losses for businesses. A full package for dislocated workers including unemployment insurance and health care. Rebates for those left out of last summer's tax cut. Fiscal relief for states.
2) Strengthen Homeland Security
Increase homeland security investments substantially. Broaden Nunn-Lugar to cover India and Pakistan and strengthen it to prevent Russian chemical and biological weapon experts - along with nuclear experts - from sharing their know how with America's enemies.
3) Restore Long-Term Fiscal Integrity to our Budget
Calls on President Bush to submit a one-year budget proposal that includes an effective stimulus plan, and a long-term plan that: restores fiscal discipline; protects the Social Security and Medicare trust funds over the medium and long-term; makes essential investments in critical areas, including defense, homeland security and education; and does not resort to gimmicks and rosy scenarios.
4) Invest in Education, Training, and Technology to Promote Job Creation and Economic Growth Advance an ambitious high technology and human capital building agenda,including:
-- Providing the resources that the reforms in the "Leave No Child Behind Act"require; -- A renewed commitment to training and lifelong learning; -- Making broadband Internet access as universal as telephone service; -- Making the R&D tax credit permanent; and -- Investing in the federal research agenda by doubling civilian R&D funding and fully funding the Advanced Technology Program in order to speed new technologies to market.
5) Open New Markets and Expand Trade Adjustment Assistance
Passage of Fast Track (Trade Promotion Authority) legislation in concert with expanded Trade Adjustment Assistance. Expand the coverage of trade adjustment assistance to so-called secondary workers, those people who work for contractors and suppliers of trade harmed companies. For the first time, expand the coverage to include farmers. Expand benefits to address the main problems these people face, such as the loss of health coverage and sharp declines in wages upon re-employment. The proposal includes a new wage insurance initiative for older workers for whom re-training is an empty promise and wage loss is most acute.
6) A Balanced National Energy Plan
Calls for a balanced energy plan that: -- Reduces our dependence on foreign oil; -- Balances increased production with conservation; -- Creates jobs; -- Invests in new technologies; and -- Positions America to tap into the estimated $1 trillion market for energy conservation and alternative energy development.
7) A Serious Approach to Retirement Security
Proposes a return to fiscal discipline as a necessary first step in strengthening these programs. Rejects the three recommendations of the President's Social Security Commission. Expresses support for private accounts as supplements - but not replacements - for the guaranteed benefit Social Security offers.