House Republicans Pushing 'Pro-Growth' Economic Stimulus Alternative

When Congressional Democrats and the incoming Obama Administration begin piecing together a promised economic stimulus plan at the beginning of next year, decreased caucuses in both the House and Senate will leave Republicans with little leverage with which to influence the contents of the package. But one tool that Republicans can use in their favor is public opinion. To that end, House Minority Leader John Boehner (R-OH) appeared on Fox News Sunday yesterday to pitch the Republicans' alternative to the massive $700 billion "economic rescue" plan currently under consideration by Democrats and President-elect Obama.

Republicans are calling for economic stimulus that does not increase federal spending. The Republican plan calls for temporary eliminating the capital gains tax on purchases of stocks and other equities, lowering the corporate income tax, and passing the American Energy Act, to boost all phases of domestic energy production. Boehner called the plan a, "serious [plan for] creating jobs in America, and challenged Obama and the Democrats to put their votes where their rhetoric is.

"Democrats can't seem to stop trying to outbid each other – with the taxpayers' money. We're in tough economic times. Folks are hurting. But the American people know that more Washington spending isn't the answer."

Boehner also ridiculed the Democrats' plans to pour federal money into roads, bridges, and other infrastructure projects, citing a recent Washington Post article detailing the objections of noted economists to the idea. Boehner also pointed to studies from the non-partisan Congressional Research Service and the Government Accountability Office that show federal infrastructure spending only replaces state money that would have been spent on the projects, meaning that there is no net increase in jobs as a result of the federal outlays.

Republicans think they have public opinion on their side when it comes to runaway federal spending. And they may be right. The $700 billion financial bailout was widely unpopular, as was the recently killed second $25 billion bailout of the auto industry. With the $700 billion economic stimulus package set to be passed after the new year, the total in new federal spending supported or enacted by Obama and Congressional Democrats will reach nearly $1.5 trillion, just since mid-September. On the campaign trail, Obama preached fiscal responsibility. But as President-elect, he appears to be abandoning all pretenses toward spending restraint. Republicans hope to capitalize on the turnaround.