Enzi: Time for Congress to Focus on Policies Boosting America’s Economic Growth
WASHINGTON D.C. – Senator Mike Enzi (R-WY), Chairman of the Senate Budget Committee, today said Congress should focus on how Congress can work with the new Administration to foster a stronger US economy. Testifying was former Senator Phil Gramm (R-TX), who provided insight into which policies have historically led to economic growth upon implementation, as well as which are most politically attainable for Congress.
“Our projected economic growth is below average, and we need to continue discussing the root causes of our lethargic economy in order to promote policies that grow it,” said Chairman Enzi. “We know, however, that big policy changes can and do alter the economy. But regardless of growth, our spending still exceeds our income. Cutting the growth of spending is something this Committee will continue to address.”
Enzi noted that a one percent increase in Gross Domestic Product (GDP) growth significantly changes the trajectory of expected federal revenue. He also said the link between taxes and output in the economy, according to Joint Committee on Taxation, can directly influence the level of labor supply, physical capital, human capital, and technology in an economy by changing the after-tax returns to certain economic activities or changing the cost of pursuing them.
“It is time to broaden the tax base while lowering tax rates in order to make our tax system simpler, fairer, and more transparent,” Chairman Enzi said. “This can limit government distortion of market-based investment decisions, increasing efficiency and growth of businesses. But reform that removes tax breaks and special interest provisions in the code will require bold policy changes, not tweaking around the edges of a broken structure.”
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