CONGRESSMAN STEVE BUYER

WORKING FOR INDIANA

Issue Position Statement:
American Recovery and Reinvestment Act

I am troubled about the rising unemployment rate and further signs of

economic downturn that we are facing in Indiana and across the nation. While
being cautious to not undermine our free market economy with too much
government intervention, Congress must act in a way that will help the country
recover. Any economic stimulus must focus on job creation, small business tax
relief and putting money back in the pockets of hard-working Hoosiers. The
American Recovery and Reinvestment Act fails to do this. The Federal
Government cannot spend its way out of this recession. History tells us that in
order to expand the economy, the private sector – the real job maker – must
grow.

H.R. 1 contains $825 billion in new spending and tax provisions which
have been characterized by the Democratic leadership as a concerted effort to
create and save 3 to 4 million jobs, jumpstart the economy, and begin the
process of transforming it for the 21st century. In actuality, this bill is a political
tool geared more toward 2012 than 2009 and will do very little, if anything, to
grow the economy or expand our job base in the short-term. Most of the
discretionary spending in this bill will not be spent until after 2010. In fact, only
8% of the spending will actually take place this year when the country needs
stimulus the most.

According to the Congressional Budget Office (CBO), the federal deficit

will rise to a record $1.2 trillion in 2009, and does not even include the nearly $1
trillion in new spending that this legislation will add. The money in this bill is
borrowed from our children and will do little to stimulate any long-term,
sustainable economic recovery. Additionally, the increased debt caused by this
legislation can be used as rationale for raising taxes and continue government
spending in the future.

On Wednesday, January 28, 2009, the House voted and passed H.R. 1 by
a vote of 244-188. I voted against this legislation for a variety of reasons. Some
of these include:

• The stimulus spending plan includes funding for non-stimulus

activities such as: the National Endowment for the Arts, the
 Smithsonian Institution facilities, the 2010 census, the Centers for
Disease and Control (CDC) and ACORN;
• Democrat leaders have indicated that the legislation will create or save
over 3 million jobs in the next two years. This is equal to approximately
$275,000 of taxpayer money for every job created or saved while the
average household income in the U.S. is $42,000 a year;
• This legislation increases the national debt by $6,700 for every
American household;
• Congressional Democrats maintain that all of the spending will expire
after two years and will not be assumed to continue in the long-term.
These short-term increases in spending, however, will create
enormous pressure to maintain these higher spending levels and thus
avoid any cuts; and
• This legislation provides $171 billion in refundable tax-credits. Unlike
across the board tax cuts, these temporary tax credits send refund
payments directly to individuals, even if they pay no taxes.

At a time in our nation when the economy is the first thing on people’s
minds, Congress should focus on legislation that encourages job creation in the
private sector, increasing private investment and encouraging consumer
spending. Stimulus must rely on proven methods to get our economy back on
track such as immediate tax relief – decreasing the capital gains tax, working
families’ income tax, small business tax and tax-free unemployment benefits.

I supported the Republican Motion to Recommit (MTR) H.R. 1 with the tax
relief provisions for working families, aid to small businesses, tax-free
unemployment benefits and stabilizing home values. Unfortunately, H.R. 1, unlike
the MTR, relies heavily on borrowing and spending, increasing our national debt
and the size of the federal government without providing any real relief or
stimulus. The MTR failed to pass the House by a vote of 159-270.
 Fast Facts: Details of the Spending in the Stimulus Bill

Goal: Stimulate the economy

Fact: Only 8% of the funds will be spent in 2009
• Only 40.7% of the funds would be spent by the end of 2010

Goal: Democrats say the bill will create or save 3 million jobs
Fact: Taxpayer cost of bill is $825 billion
• Cost per job: $275,000
• Average US Household Yearly Income: $42,000

Goal: Grow government jobs

Fact: $214.5 billion to create or save an estimated 330,400 government jobs
• Cost per job: $646,214

Goal: Fund public works projects like building highways, bridges, rail and transit
systems and dams
Fact: Only 13% of the funds go towards such projects
• A mere 3.6% for highway construction

Goal: Stimulate the economy

Fact: Creates 32 brand new federal programs – costing $136 billion – and
expands 60 existing liberal pet programs – costing $76 billion
• $19 billion for food stamps
• $6.2 billion for Weatherization Assistance Program for moderate
income families
• $50 billion for the National Endowment for the Arts
• $6 billion for private telecommunications companies to expand
broadband even though they are expanding without a government
handout
• $600 million to “prepare our country for universal healthcare”

Goal: Stimulate the economy

Fact: In January alone, Democrats are pushing $1.2 trillion in deficit spending
• The worst Republican budget deficit (including funds for the 9/11
terrorist attacks, wars in Afghanistan and Iraq, Hurricanes Katrina &
Rita) was $412 billion

Goal: Stimulate the economy

Fact: $3 billion for prevention and wellness programs through the Centers for
Disease Control (CDC)
• Including $335 million for STD education and prevention
• CDC’s budget goes for the following purposes
o A transgender beauty pageant in San Francisco that
advertised available HIV testing
 o Funded an event called, “Got Love?- Flirt/Date/Score” that
taught participants how to “flirt with greater finesse” also put
on by a Stop AIDS Project
o Funded an event called “Booty Call” and “Great Sex” put on
by an organization that received $698,000 in government
funds

Goal: Stimulate the economy

Fact: $600 million to buy new cars for government workers
• The federal government already spends $3.5 billion a year to
acquire, operate, and maintain a fleet about 642,000 trucks,
passenger cars, and other vehicles

Goal: Stimulate the economy

Fact: $150 million for repairs to Smithsonian Institution Facilities

Goal: Stimulate the economy

Fact: $642 million for equipment, construction, and renovation of facilities at the
CDC
• Same federal agency that is spending close to $500,000 a year for
an office in Hollywood whose mission is to help movie directors
improve their scripts
• Same federal agency that used a portion of a recent taxpayer-
funded $60 million upgrade for a “Japanese Garden”

Goal: Stimulate the economy

Fact: $1 billion for the follow-up to the 2010 census
• The follow-up will not even begin until April 2010

Other fast facts:

• Prohibits funds from being spent on schools with religious missions;
• $13 billion for corporate welfare;
• $335 million for STD prevention while only $350 million for DOD
energy research;
• Only 8% of the spending will take place this year;
• This legislation alone increases the national debt by $6,700 for
every American household;
• This legislation will spend enough money to give every man,
woman, and child in the nation $2,700 each; and
• Japan responded to a 1990 recession by passing 10 “stimulus” bills
over 8 years (building the largest national debt in the industrialized
world). Their economy remained stagnant and their per capita
income went from the second highest in the world to the tenth
highest.