Bush will bring strong economy

The American economy is now growing at a rate most countries could only dream of, thanks to President Bush's tax cuts. According to the International Monetary Fund, the U.S. economy will grow 4.3 percent this year. Germany's socialist economy, by contrast, is expected to grow at less than half that rate — a mere 2 percent. Economists around the world have been stunned by the strength of the American economy: even after the burst of the tech bubble, 9/11, and a wave of corporate scandals (none of which is President Bush's fault), the American economy is performing extremely well and creating large numbers of jobs.

John Kerry claims President Bush has the worst economic record since the Great Depression, but fortunately, Kerry has failed miserably in his efforts to talk down the economy. The unemployment rate today is 5.4 percent, right where it was when Clinton stood for reelection. Today, 69 percent of all Americans own their homes, the highest percentage in U.S. history. This past year, 1.8 million new jobs have been created. Real after-tax income is up more than 10 percent since President Bush took office. And remember all the talk about outsourcing? This year, close to 100,000 jobs have been added in the American manufacturing sector. All this after the burst of the tech bubble, 9/11 and corporate scandals. It's quite amazing. How did it happen?

Following in President Reagan's footsteps, Bush and a Republican Congress have cut taxes by about $1.7 trillion over 10 years. Because of the tax relief, Americans have been able to work, save and invest more and the economy has grown as a result. It is specifically middle-class Americans who have benefited tremendously from the Bush tax cuts. A family of four earning $40,000 saved $900 in taxes, and 94 million Americans are paying less in taxes than before. And low-income Americans found relief as well: four million low-income families now pay no federal income taxes at all. The child credit has been doubled, and middle-class taxpayers have been protected from the Alternative Minimum Tax for the first $58,000 of their income, saving them $23 billion through 2005. The result of all this tax relief has been tremendous economic growth and a rapid increase in the number of new jobs. Because of President Bush and Republican leadership in Congress, the economy is strong.

What about the tax cuts for the "wealthiest Americans"? Kerry and Edwards repeatedly try to play the class warfare card, but there really is no substance to the accusations. Small businesses are the leading source of new jobs in this country, and many small businesses pay personal income taxes, not corporate taxes. The proposal by Kerry to boost taxes for "the wealthy" would boost taxes on 900,000 small businesses, severely hampering the job creation that working Americans need and deserve. Working Americans will lose jobs if John Kerry gets his big tax increase passed.

Kerry claims that the extremely steep 36 percent increase in non-defense spending under Bush is not enough, and (predictably) the Massachusetts liberal has vowed to outspend him: Kerry's new spending proposals add up to more than $1.7 trillion over 10 years, more than all of the President's tax cuts combined. That is irresponsible at best and reckless at worst: Kerry would have to reverse all of the existing tax cuts (notably those for middle class and low-income Americans) to pay for his promises. That is not what the American economy needs right now, nor is it what the American people deserve.

Despite the burst of the tech bubble, 9/11, and corporate scandals, sound fiscal policy has made the U.S. economy the envy of the industrialized world. The President and Republicans in Congress should be given four more years to continue the pro-growth fiscal policies that have brought tax relief and created almost 2 million new jobs, making our economy strong and life in America better for all Americans. Jurgen R. Reinhoudt '06 writes on behalf of the College Republicans. He can be reached at jreinhou@princeton.edu.