Report from Congress

REPORT FROM CONGRESS
By Congressman Roger F. Wicker

WICKER TOUTS STATISTICS ON SURGING ECONOMY

The recent U. S. Labor Department report that 243,000 new jobs were created in February adds to an impressive record of employment growth that spans 30 consecutive months. It is yet another indication that the economic policies advanced by President Bush and this Congress have spurred development and greater economic opportunity.

More Americans are working today than at any time in history. The country has gained nearly five million new jobs since August 2003. Our expanding economy has lowered the unemployment rate to 4.8 percent. This new figure represents a dramatic drop from the 5.4 percent rate a year ago and is lower than the average unemployment rates of the 1970s, 1980s, and 1990s.

MANY POSITIVE SIGNS

In addition to the jobs statistics, there are many other positive signs that the nation's economy is surging. The Dow Jones News Service reported, "Other recent economic figures, particularly consumer spending, suggest the economy began 2006 on a very strong tone, with many economists projecting gross domestic product growth well in excess of 4 percent in the first quarter." Among the leading indicators:

· 3.5 percent growth rate for the U.S. economy in 2005.
· Retail sales up 8.8 percent and consumer spending up 3.6 percent over the past 12 months.
· Manufacturing sector increases in February for 33rd straight month, with overall industrial production up 3.1 percent in 2005.
· After tax income up 5.4 percent over past year.
· Inflation in check, rising at just 2.1 percent in 2005.
· Housing starts at highest level in 30 years, and homeownership rate of 70 percent at all-time high. Minority homeownership is also at a record level.

The growth of our economy has been fueled by tax relief enacted by Congress and signed into law by President Bush over the past four years. These measures, combined with action to ease federal regulation, have enabled families to keep more of what they earn and spurred businesses to hire additional workers. More than 890,000 Mississippi taxpayers will have lower income tax bills this year as a result of these efforts.

MAKING TAX RELIEF PERMANENT

Legislation to create a new 10 percent tax bracket, reduce the marriage penalty, cut the tax rate on dividends and capital gains, and increase the child tax credit have been essential elements in this economic expansion. Unless Congress makes these tax provisions permanent, they will expire over the next few years. Such action would amount to a tax increase on the American people and would be a blow to our economy. We cannot allow that to happen. Protecting these gains remains a high priority during this session of Congress.

http://www.house.gov/wicker/Surging.html