New Analysis: GOP Growth Plan Would Generate More CA Jobs Than Dem “Stimulus” Bill

February 5, 2009

WASHINGTON, DC – As debate on the Democratic-sponsored “stimulus” bill continued today in Washington, Congressman David Dreier (R-San Dimas, CA), House Rules Committee Ranking Republican, pointed to a new analysis that demonstrates more jobs would be created under the GOP alternative as evidence for the need for a new direction in the debate.  According to a study conducted by the House Ways and Means Committee Republicans, and based on the application of the economic analysis of current White House economic official Dr. Christina Roemer to the plan, California would gain 688,000 jobs under the GOP plan and 421,000 under the Democratic one, a difference of 267,000 jobs. 

“Our economy is in crisis and we need to take steps to grow jobs, not government,” Dreier said.  “Californians are hurting and they need solutions, not excessive spending.  As we argued during the House debate, more bureaucracy won’t help save or create enough new jobs to restore our economy to sure footing.  The best way to do that is by allowing small businesses, the engines of our economy, to keep more of their money so they can retain and hire more workers.  267,000 more jobs in California means help for California families that need it.  There’s still time to change course.  Californians need a new approach to solving this economic crisis.”

Congressman Dreier was a co-author of the GOP alternative to H.R. 1, which would do the following:  reduce the lowest individual tax rates from 15% to 10% and from 10% to 5%, helping working families the most; allow small businesses (those employing less than 500 individuals) to take a tax deduction equal to 20% of their income, freeing up capital for investments or hiring; preclude any tax increases now or in the future to pay for new spending included in the bill; make unemployment benefits tax free so that individuals between jobs can focus on providing for their families and finding their next job; and, provide a $7,500 home-buyers credit to responsible buyers who make a minimum down-payment of 5%, in order to stabilize home values and get the real estate market moving again.