The Rock Mountain News - $819 Billion 'Investment' Will Put American on Track

Op-Ed

The Rock Mountain News - $819 Billion 'Investment' Will Put American on Track

The American economy shed more than 2.6 million jobs last year, leading to the highest unemployment rate in more than six decades. The stock market lost more than $7 trillion in value last year as well, taking more than 25 percent of Americans' retirement savings with it.

In Colorado, more than 165,000 people are out of work. Requests for food were up 18 percent in 2008. The state is also contending with a projected 18-month budget deficit of $1 billion. With economists indicating that 2009 may be even more challenging than 2008, it is not hyperbole that we are facing a worse economic crisis today than at any time since the Great Depression.

This week, I joined with my Democratic colleagues in the U.S. House of Representatives to pass the American Recovery and Reinvestment Act. This legislation provides $819 billion of investments in key projects and programs that will put America back to work and rebuild important sectors of our country. These are difficult times and inaction is not an option. I voted for this legislation because it is a balanced mix of targeted spending and tax cuts that are designed to meet and achieve President Barack Obama's goal of creating and saving 3 to 4 million jobs.

Unfortunately, the arguments made against this legislation are misleading and the counterproposals offered by the House Republican leadership are counterproductive.

An analysis of their plan reveals that less than a quarter of the tax benefits would go to the poorest 60 percent of taxpayers. Republicans also fail to recognize that their tax cuts targeted at the wealthy will also add to the deficit and, combined with their misguided policies over the past eight years, leave the Obama administration to deal with a projected $1.2 trillion budget deficit.

It is outrageous for Republicans to hide behind a sudden concern for budget deficits that they created as a reason for their lock-step opposition to this economic reinvestment package.

Rather than provide a tax cut for the wealthiest few and hope once again that it will trickle down into our economy, the bill includes $145 billion in immediate tax relief for 95 percent of American workers through the Make Work Pay Tax Cut. This will provide a refundable tax credit of up to $500 per worker by reducing taxes straight from workers' paychecks. These targeted tax cuts would directly benefit more than 1.7 million Coloradans.

The bill also provides direct relief to the majority of businesses — permitting them to immediately write off 50 percent of the cost of manufacturing equipment, computers and other depreciable property acquired for use in the United States.

Colorado needs the $990 million in state fiscal relief, the $225 million for education, school modernization, renovation and repair, the $565 million in infrastructure improvements and millions of other dollars this legislation provides. The state delegation has already met with Colorado business leaders who have indicated their support and believe these investments are necessary. This has been an open process — the legislation is neither moving too quickly nor being assembled behind closed doors.

During this economic downturn, we cannot afford to delay anymore. We have an opportunity to move this country forward instead of sitting back and playing the same type of politics that got us here in the first place.

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