Last night, I conducted a telephone townhall meeting with citizens in Cobb County.  It was a lively discussion that last about 90 minutes. Some of the topics raised were: the economy, the war in Iraq and our greater War on Terror, reimbursement rates for the disabled, veteran healthcare, immigration and border security, the Fair Tax, violence on TV and traditional values.

I greatly enjoy these tele-townhall meetings, because they’re a wonderful way for me to talk with the folks back home when I’m in Washington.  So far this year, I’ve placed calls to citizens in Paulding, Gordon, Cobb, Haralson, Polk, Chattooga, Floyd, Bartow and Carroll counties. If you haven’t gotten a call yet, you likely will in the upcoming months.

As you may know, Phil has been an outspoken voice against legislation that will raise taxes on Georgia workers and families. So far this year, Congress has passed legislation that would raise taxes by $392 billion. That’s more than $3,000 extra each taxpayer will have to turn over to the government!  Phil is fighting hard against this irresponsible spending – and his latest effort, with the help of the Republican Study Committee (RSC), is to make sure everyone who passes by his office knows how much our government is spending.  His message to the new Democrat leadership is simple: stop raising taxes and growing the federal government.

We’ll keep you updated as the numbers on this sign continue to grow – and hopefully, the effort will help remind Americans why fiscal conservatism is critical to our nation and economy.

Last night, I hosted a very successful telephone townhall meeting with citizens in Cobb County.  Tele-townhalls are a new way I’m working to communicate with residents of Georgia’s 11th District and hear their thoughts on today’s pressing issues. Here’s how it works: each month, I choose a county and place phone calls to the residents who live there.  I invite them to join in a live, toll-free tele-townhall meeting, and then conduct the meeting over the telephone.  Those who are listening can ask me questions or share their thoughts on a particular issue.

So far this year, we’ve called Floyd, Chattooga, Bartow, Paulding, Cobb, Polk, Haralson and Carroll Counties.  We’ll continue hosting a tele-townhall meeting each month, so if you missed me the last time I called your county, you can be sure I’ll be calling again in the upcoming months. For those of you who weren’t on the call last night, here are the topics we discussed:

Immigration reform and ending chain migration
Tax relief and the Fair Tax
Gas prices
The War on Terror and our efforts in Iraq
Healthcare reform
Combating drug abuse, especially methamphetamine abuse

I really enjoy these opportunities to hear your thoughts and concerns. But you don’t have to wait for a tele-townhall to let me know what’s on your mind. Feel free to email me by clicking HERE, or click HERE to get contact information for my offices in Washington, Marietta and Rome.

Later this week, the House is expected to vote on the Conference Report for the Democrats’ FY2008 budget.  Hold on to your wallets, because if this bill passes, it will amount to the second largest tax hike in U.S. history – increasing taxes by at least $217 billion by 2012.  The House Budget Committee provides the following details, each more ominous than the last:

- The agreement includes a tax hike of at least $217 billion by fiscal year 2012.

- This includes increases in marginal rates, capital gains rates, dividends taxes, and others.

- It also includes an additional “trigger” tax hike:  If surpluses do not materialize – i.e. Congress spends too much – a tax hike “trigger” will automatically raise taxes even higher

- This would raise the Democrats’ tax increase right back to the House-passed $400 billion – the largest tax hike in American history.

- The bill provides only a minimal one-year patch for the mounting Alternative Minimum Tax crisis.

Stay tuned to see how the debate plays out in Congress – will the forces of big government trump the needs of American taxpayers?  We hope not… but we’ll wait and see.

The Tax Foundation recently released the results of a poll showing the vast majority of Americans feel their taxes are too high (No surprise there – Phil seldom hears from constituents who think they aren’t paying enough in taxes and want the government to take more from their paychecks). Among the survey’s other findings:

– 83% believe the current federal income tax is complex
– Nearly 60% believe they pay too high an amount in federal income tax
– 87% believe the federal tax system needs major changes or a complete overhaul

The last number is particularly telling. Nearly 9 in 10 Americans believe major change is needed to fix our tax system. Phil agrees, which is why he supports the Fair Tax. To learn more about this fundamental reform to our tax system, click HERE.

The Marietta Daily Journal today ran an op-ed from Phil critical of our current tax system:

Ronald Reagan once quipped, “The current tax code is a daily mugging.” Come April, that mugging feels more like armed robbery at the hands of the IRS… You might be surprised to learn that Georgians will work from Jan. 1 through April 22 this year just to cover their share of taxes. That’s right: According to the Tax Foundation, it takes us 112 days of income to pay off our local, state and federal tax burden. Three and a half months’ salary is simply too much to pay in taxes. To change this, we need continued tax relief for our citizens and fundamental tax reform for our nation.

Phil makes the case for fundamental tax reform by explaining:

The unfortunate reality is these efforts [to lower taxes] can be easily undone by congressional majorities more interested in big government than small taxes. Nowhere is this more obvious than in the current U.S. House of Representatives.

After campaigning on fiscal responsibility, the Democratic leadership has already passed the largest tax increase in American history. Their 2008 Budget Resolution would raise taxes nearly $400 billion over five years, slapping Georgia workers with a $2,700 tax increase per person in 2011. One thing is clear: protecting our paychecks is not a priority for the new Democrat majority.

Only by fundamentally reforming our tax system can we safeguard our incomes from the whims of a tax-happy Congress.

Phil then describes a “fairer” way of taxing – the Fair Tax:

While I strongly support legislation to lower taxes, I am also working to completely change the system by enacting the Fair Tax. This plan, long championed by Georgia Congressman John Linder, would stop taxing what we make, and start taxing what we spend.

The Fair Tax does away with the IRS altogether, and creates a national consumption tax in its place. This would drastically reduce taxes on lower- and middle- income families, and encourage innovation and economic growth… Under our current system, the harder you work, the more you’re taxed. We actually penalize success. Conversely, under the Fair Tax, the items you purchase - not the income you make - determines your tax bill each year.

To read the complete article, click HERE.

Today, the U.S. House of Representatives will be voting on the Democrats’ 2008 budget - a budget that represents the largest tax increase in American history. It raises taxes $400 billion over five years! It increases the marriage penalty. It cuts the child tax credit in half. It represents a tax-and-spend mentality, and it is bad legislation. As a fiscal conservative, I won’t be supporting the Democrats’ budget.

Georgia taxpayers are going to bear the burden of this irresponsible bill.  The Budget Committee estimates that Georgia’s taxpayers will see their taxes rise an average of $2,700.  That means a family of four with $60,000 a year in earnings would see their taxes rise 61% in 2011, and an elderly couple with an income of $40,000 would see their tax bill nearly triple that same year.

I have a message for the Democrats: our families shouldn’t bear the burden of a growing federal government.  Americans should get to keep more of their hard-earned money, not turn it over to federal programs riddled with waste and abuse.  If you want to learn more about what conservatives in Congress are doing to reinstate responsible spending, click HERE (my website) and HERE (Republican Study Committee) for information on the Taxpayer Bill of Rights. I am proud to support this effort.

Let me leave you with a very telling fact. The last time Democrats were in control of the U.S. House of Representatives – that would be from 1993 to 1994 – they passed what at the time was the largest tax increase in American history.  Well, it looks like the Democrats are trying to top themselves this year with an even larger tax hike, and Georgians have every right to be outraged.

Last week, Phil and other fiscally responsible Members of Congress rolled out the American Taxpayer Bill of Rights – a pledge to taxpayers across this nation that our federal government will stay accountable to those who foot its bills. To learn more about this initiative, click HERE.  In today’s Wall Street Journal (subscription required), Congressman Jeb Hensarling (R-TX) very poignantly lays out the purpose of this Bill of Rights:

Four simple principles. For those who believe Washington spends too much, we agree. For those who believe Washington still taxes too much, we agree. For those who believe we must balance the budget, cut wasteful Washington spending and provide further, permanent tax relief, we agree. And so we pledge to do it better and get it right…. Our leaders must never forget that tax money belongs to the taxpayers, not the government.

Rep. Hensarling is Chairman of the Republican Study Committee, a caucus of conservative House members who are working to keep taxes low and protect our traditional family values. Phil is a proud member of the RSC.

President Bush released his FY2008 Budget request today, saying the plan would balance the budget by 2012. The Office of Management and Budget has links to the priorities in each section of the budget. Click HERE to read the budget overview, HERE to read about funding for the War on Terror, HERE to read about healthcare funding, and HERE to read about budget discipline.  For more 2008 budget priorities, click HERE.

Did you know that for the Democrat leadership to raise your taxes, they don’t even have to win a vote on the House floor. In fact, all they have to do is… nothing.  Unless Congress takes action soon, critical tax relief passed by the Republican majority to help Georgia families and small businesses will expire – and a tax increase will automatically occur.

I strongly support making permanent the successful tax relief passed by the Republican-led Congress. By increasing the child tax credit, delivering marriage penalty relief, and lowering overall tax rates, we have kept our economy strong and growing.

Below is a list of some of the ways your family could be affected if the Democrats let these provisions expire. It’s not a pretty picture (thanks to the Republican Study Committee for these figures)

In 2009, the marriage penalty would be reinstated.

In 2010, the child tax credit will decrease from $1,000 to $500. Also, the small business expensing cap will decrease from $100,000 to $25,000, and the definition of a small business will decrease from $400,000 to $200,000 – raising taxes on our small businesses.

In 2011, things start getting really ugly for the American taxpayer. The marginal income tax rates will increase as follows: 35% bracket will increase to 39.6%; 33% bracket will increase to 36%; 28% bracket will increase to 31%; 25% bracket will increase to 28%; 10% bracket will increase to 15%. The personal capital gains rate will increase from 15% and 0% to 20% and 10%. Dividends will no longer be taxed at the personal capital gains rates, thereby increasing the double taxation of dividends by as much as 62%. The annual education IRA contribution limit will decrease from $2,000 to $500.

Since I began representing the 11th District of Georgia four years ago, I have never once had a constituent come up to me and say, “Gosh, Congressman, can you get the folks in Washington to raise my taxes? I’m just not paying enough of my hard-earned money to the federal government.”  It is shameful that the Democrats plan to let this tax relief expire, thereby raising our taxes and harming our economy.  I won’t give them a pass on this issue, and neither should you.

Tonight, President Bush delivered his annual State of the Union address. To read a transcript of his speech, click HERE.

Here are Phil’s responses to some of the President’s goals:

BI-PARTISANSHIP:
“I am extremely pleased President Bush framed his domestic policy initiatives in terms of choice and innovation, not expanded government bureaucracy.  The American people expect the new Democrat majority to address these problems the right way.  Our citizens don’t want socialized medicine or kid gloves for terrorists. We in Congress need to heed this message.”

HEALTHCARE:
“As a physician, I agree we should give individuals greater control over their healthcare decisions, rather than relying on employers and bureaucratic federal programs.  Concerns over health coverage shouldn’t stop someone from switching jobs or starting a new business, but it often does. Increasing choice and competition in our healthcare system will drive down costs and move us away from the current “big government” mindset.”

IMMIGRATION:
“I am concerned the President’s guest worker program amounts to amnesty for illegal immigrants. The state of Georgia has felt the full impact of illegal immigration on our healthcare, education and social welfare systems, and amnesty would only exacerbate these problems.”

IRAQ:
“On Iraq, the President reminded us that our efforts are directly linked to the larger global War on Terror.  He is absolutely right, and it is a connection that is too often forgotten. Simply put, Congress has a solemn responsibility to give our government and military the right tools to protect us from radical terrorists bent on destroying our nation. The President has a plan for victory in Iraq, and Congress shouldn’t tie one hand behind his back as he’s preparing to deliver the knock-out punch.  Success is far more important than kowtowing to political pressure to abandon our mission.”

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Phil participated in a press conference yesterday criticizing the Democrats’ failed First 100 Hours agenda.

“The Democrats’ first 100 hours were spent on watered-down initiatives that at best were ineffective and at worst were detrimental to our economy and citizens,” he said. “The Democrats showed their commitment to raising taxes and expanding the federal government. They also showed their willingness to forgo debate and process for sound bite solutions that do nothing to address the real problems facing our nation.  The American people deserve better. We need sound policy, not sound bites.”

Former Majority Leader Tom Delay weighed in after the press conference on his blog:

I would personally like to congratulate and thank Representatives McHenry (R-NC), King (R-IA) and Gingrey (R-GA) for outlining the ramifications of the Democrat’s legislative push in their press conference today.

Ultimately, all of the Democrat’s gooey words about bipartisanship were rendered meaningless by ramming through a rules package designed to silence the opposition and make it easier to push future tax increases through the House. Six pieces of legislation, which the Democrats claim were so important to the national interest, received no hearings by the subcommittees or committees of jurisdiction nor did these ideas receive any hearing or input from the public. Pelosi and her gang silenced their Republican colleagues by refusing to allow them to offer or consider amendments.

For more on the Democrats’ misguided agenda, click HERE and HERE.

As we begin the 110th Congress, one of the Democrats’ first acts has been to enact House rules that widely open the door for tax hikes on hardworking Americans.  As today’s Wall Street Journal (subscription required) opines:

“Paygo,” as Washington insiders call it, sounds like a fiscally prudent budget practice: If government spends more on program A, it has to spend less money on program B… Ms. Pelosi has something different in mind. Under her paygo plan, new entitlement programs and all new tax cuts would have to be offset by either cutbacks in other entitlement programs or tax increases. This version of paygo is a budget trapdoor, designed not to control expenditures but to make it easier to raise taxes while blocking future tax cuts.

Here’s what the Democrats don’t won’t tell you: tax relief fuels our economy. In fact, in 2006 we witnessed a $318 billion expansion of U.S. economy. And our strong economy has resulted in more revenue:  14.5% revenue growth in 2005 and 11.8% revenue growth in 2006.  So far, Republican tax relief has put $880 billion in the hands of American workers and businesses – NOT the federal government coffers.

Many of the Republican-passed tax relief packages are set to expire starting in 2010 – packages like the child tax credit, the marriage penalty relief, and overall lower tax rates.  If the Democrats let these tax cuts expire, a family of four making $50K a year would see their taxes go up by $2,092 in 2011 – an increase of 13% (according to the U.S. Treasury).  That would amount to a $2.4 trillion tax raise over the next decade.

As the Wall Street Journal advises, “Keep an eye on your wallet.”

I invite you to check out my December e-Newsletter by clicking HERE.  You can learn about the Iraq Study Group Report, the recently passed tax relief bill, the Unborn Child Pain Awareness Act, and my advance directive legislation the House passed this month.

The Department of Labor today announced that 51,000 jobs were created in September – marking the 37th straight month of job growth in America.  Our economy is showing impressive strength, and it is due in large part to the Republican principles of lowering taxes and encouraging growth and innovation.  Nancy Pelosi and the congressional Democrats have consistently voted against the policies that are keeping our economy strong, and when I look at the raw economic data, I am reminded again and again that this Republican majority has delivered for the American people.

Here’s an interesting fact – Since August 2003, our economy has created more than 6.6 million jobs.  That is more jobs than ALL other major industrialized nations have created, combined! (Click HERE to read more).

To learn more about how Republican policies are lowering taxes on working Americans and supporting American families, click HERE and HERE.

In light of today’s job growth announcement (see below), I want to take a moment to recognize our small businesses.

I am very proud that this Republican majority has passed legislation supporting small businesses.  From reducing the tax burden to helping small businesses afford healthcare for their employees, we are working to support the businesses that generate nearly 70 percent of all new jobs created in America.

Let me share with you some telling facts about American small business, compliments of the House Small Business Committee:

Importance of Small Business to the U.S. Economy

• In 2002, there were approximately 23 million small businesses in America.
• In 2002, 99.7 percent of all businesses in the U.S. were small businesses.
• In 2002, there were 5.5 million small firms with employees and 17.5 million businesses without employees.
• Small firms account for more than 50 percent of non-farm private production and about half of all non-farm sales.
• In 1997, 24.8 percent of manufacturers, 52.6 percent of retailers, and 46.8 percent of wholesalers were small firms.

(more…)

From remarks by President Bush yesterday on the Office of Management and Budget’s Mid-Session Review:

“Our original projection for this year’s budget deficit was $423 billion. That was a projection. That’s what we thought was going to happen. That’s what we sent up to the Congress, here’s what we think. Today’s report from OMB tells us that this year’s deficit will actually come in at about $296 billion.

That’s what happens when you implement pro-growth economic policies. We faced difficult economic times. We cut the taxes on the American people because we strongly believe that the American people should lead us out of recession. Our small businesses flourished, people invested, tax revenue is up, and we’re way ahead of cutting the deficit — federal deficit in half by 2009.”

The House today will debate:
H.R. 5638 - Permanent Estate Tax Relief Act of 2006 (the Death Tax, as we like to call it)
H.R. 4890 - Legislative Line Item Veto Act of 2006

Tune in to C-SPAN.

Death should not be a taxable event. Unfortunately, the Senate failed to kill the Death Tax last night by a vote of 57 to 41 (the Senate needed 60 votes to pass the measure).

Last year, the House passed the Death Tax Repeal Permanency Act, which would stop the taxation of assets - like small businesses and family farms - that are passed from one generation to the next. I think this is a hugely important piece of legislation, and one that will help keep our economy strong. Our small business owners and family farmers shouldn’t be penalized for passing their businesses on to their children. It’s that simple.

I am very disappointed in the Senate’s failure to pass this legislation.