A Better Stimulus for the Economy

Senator John Cornyn (R-TX) was elected to the U.S. Senate in 2002. In a short period of time, he earned a national reputation as a forceful and articulate voice for Texas values. Sen. Cornyn continues to take a leading role on many important issues in the Senate. He is committed to bolstering our national defense and keeping America safe from terrorism, reducing spending, securing our borders, making health care more accessible, continuing to strengthen the economy and expand job opportunities, improving educational opportunity, and protecting the most vulnerable in our society.

NOTE: Senator Cornyn wrote this editorial on February 13, 2009.

On Monday, President Obama argued that we cannot rely on the same strategies that got our economy into this crisis to get us out of it. I agree. I voted against the economic stimulus bill as it moved through Congress, and will vote against the final bill today, because I believe it replicates a failed strategy.

A stimulus bill is a good idea if it’s focused on the right priorities, which was President Obama’s original vision. The Administration said it wanted a bill that was timely, targeted, and temporary. If the bill had reflected that spirit, then the President’s goal of 80 votes in the Senate might well have been in reach.

But we never saw the bill the President said he wanted. Democrats in Congress redefined “stimulus” to mean nearly anything any of them desired, with predictable results. Many programs in the bill are wasteful and unnecessary, earmarks in all but name. Others seem to advance questionable public policies, which deserve a full hearing before being funded. Still others represent good policy, but are poor choices to stimulate the economy because they will take many years to implement.

Texans are promised many benefits in this bill, but we will also pay the costs. The Congressional Budget Office estimates that the stimulus bill will actually reduce growth in the long term. That means millions of our children will have fewer opportunities when they enter the workforce, even as they inherit more public debt than any generation in history.

The tragedy of this trillion-dollar bill is that ignores a hard lesson learned: we cannot spend our way to prosperity. During the Bush Administration, we strengthened our homeland defenses, delivered a prescription drug benefit for seniors, and increased federal support for education – yet the additional spending did not protect our economy from recession. In last year’s stimulus package, we sent out rebate checks and authorized billions in emergency spending, but they had no effect.

We must recognize the policies that haven’t worked – and get behind the ones that will. First, we must address the root of the problem in the housing market. So I supported a plan to lower mortgage rates to as low as four percent for millions of homeowners. This approach would quickly cut a huge expense in many family budgets, and reduce the risk of more foreclosures.

Second, we must deliver the kind of tax relief that works. So I offered in an amendment to the stimulus bill that would have reduced the 10 percent income tax bracket to 5 percent, and lowered the tax bill for everyone who must file a tax return by April 15. Lowering marginal tax rates can be a game-changer for every taxpayer’s budget, and for our economy. This approach worked for John F. Kennedy, it worked for Ronald Reagan, and it can work for us.

Third, we must support additional funding for programs that are delivering results, and for urgent national priorities. One such priority is national defense and border security. The National Guard Bureau reports that many units, after fighting wars and responding to natural disasters, have billions of dollars in unmet equipment needs. We need to give these brave men and women the tools they need to defend our country and our communities. And many economists believe that defense spending after Pearl Harbor, not domestic spending after the New Deal, truly lifted our nation out of the Great Depression.

A better approach to the stimulus bill was available, and remains available. I pledge to work with the Administration to ensure that the accountability and transparency measures promised in the package are effective. I will also continue to build support for alternatives that will create more opportunity for our families and small businesses, and restore our economic strength.

Please note: the Alliance does not support or oppose the aforementioned legislation. We believe that it is important for our members to be informed about critical legislation currently being developed by Members of Congress — legislation that could impact you, your business, and your family. We realize that you may agree or disagree with the opinions and ideas presented by legislators. However, it is important that you express your opinions so your voice can be heard. If you would like to speak up about this or other pieces of legislation, click here to contact us and vocalize your opinion.