Economy & Budget

If all goes well in the Senate this week, we should accomplish our long stride for lower gas prices and energy independence with the passage of the Gulf of Mexico Energy Security Act. I have long advocated opening up Lease 181 and fully support the provisions in this commonsense legislation. But, I have also offered an amendment that would allow other States including Virginia to opt out of the federal ban on deepwater exploration, if they choose to do so, with a portion of generated revenues going towards transportation infrastructure, in-State college tuitions, and coastal communities. With gasoline prices surging at more than $3 dollars a gallon, it is unbelievable and irresponsible to continue this obstructionist, detrimental moratorium on deepwater exploration. The Gulf of Mexico Energy Security Act is an outstanding bill and is vital for our national security, competitiveness, and creating jobs.

The Bush Administration has so far been unable to win a full repeal of the estate tax, which would add hundreds of billions of dollars to the national debt. Yet, a major newspaper recently exposed the Administration's plan to layoff 157 of 345 tax attorneys who audit estate and gift tax returns at the Internal Revenue Service (IRS) by September 30. This decision requires substantial clarification. With no Congressional review whatsoever of this plan, I don't see how political appointees at the IRS can deny charges that these layoffs are intended to weaken enforcement of tax laws that the Administration opposes.
My Democratic colleagues and I have requested that IRS Commissioner Mark Everson immediately delay this decision until Congress has adequate time to review the plan. "The IRS has repeatedly told Congress that the problem of the wealthiest Americans failing to pay the true amount of taxes owed is a growing problem. Therefore, we cannot understand why you would want to eliminate auditors from a division that is not only the most productive, but also, according to your agency, where there is a growing need for audits," we wrote. "We would appreciate clarification about the exact workload of these auditors, the distribution of cases by the amount of taxable estate value, and how their possible elimination will affect tax collection for this division of the IRS." In short, with fewer auditors, how will the IRS keep up with audits of those who are not adequately paying taxes on gifts?
More information and a copy of our letter to Commissioner Everson are available online at: http://rothman.house.gov/news_releases/2006/july28.htm

Obviously national defense and homeland security are the most critical issues as we look at what's happening in Iraq.  Domestically, it's energy.  Hopefully people will think a bit more about advantaging ourselves of the natural gas and oil resources that we have.

Energy security equals national security.

I hope we can get our budget stuff done. I'd like to see us look at tax reform. I'd like to see some stuff on the Fair Tax, or at least some hearings on it.

Most of the people in my district aren't making minimum wage - from that standpoint, the market is taking care of itself.  While we look at the unemployment rate being the lowest in four years and the economy having sustained growth, it's also important that everyone benefits from the good economy, not just the privileged few.

What I'd hope is what we've been demanding for years: a clearly-found vote without too much baggage.

By AFL-CIO President John Sweeney

America’s workers need a real raise, not a vote on sham legislation that will not provide our nation’s workers with the relief they so desperately need.  As the House of Representatives considers legislation that would raise the federal minimum wage for the first time in 10 years, it’s absolutely critical that members vote to increase the minimum wage by $2.10 – from $5.15 to $7.25 – without “poison pills Read more...

I believe it is wrong for this Congress to allow citizens in the wealthiest nation in the world to work a full-time job and still live in poverty. Millions of working men and women, and their families, can ill-afford to wait for Washington partisan politics. It is far past time that Congress raise the minimum wage $2.10, from $5.15 to $7.25.

For me, this is not just a fiscal issue it is a moral issue. Since 1997 -- the last time Congress passed an increase in the minimum wage -- the price of gas has gone up, the price of food has gone up, rent has gone up, mortgage costs have gone up, the cost of college has gone up, the only thing that has not gone up is the minimum wage.

The reality is the minimum wage today is at lowest point in over 50 years.

The Commerce Department reported today that the economy rose at an annual rate of just 2.5 percent in the second quarter, less than half the robust pace of the first quarter. Does this foreshadow a softening economy going forward? Well, sort of.
Recent data on housing and consumer spending show that these components of the economy are sluggish, from high energy prices as well as rising interest rates. However, recent data on trade and new orders for capital goods suggest that business investment and exports are still humming along.

Look for economic growth to accelerate to above 3 percent growth in the third quarter, with more growth coming from investment and trade and less from consumption and housing.

I have always said that the ban on U.S. beef was unfounded and inconsistent and that we needed to pressure Japan to reopen its market to American beef. Last month Senator Pat Roberts joined me in introducing bipartisan legislation designed to pressure Japan to lift its ban.  Our bill would have required the Treasury Secretary to impose tariffs on Japanese products unless Japan re-opened its market to U.S.-produced beef by August 31.

We vowed to keep up the pressure until American ranchers had access to Japan's market again. The pressure we applied has paid off. America’s beef is among the safest in the world, a fact that has again been reinforced today by Japan’s announcement.  This is a victory for our beef producers, and it shows that the United States can win trade disputes if we’re willing to fight.