It took a while to get a response, but yesterday I received an emailed response from Senator Kay Bailey Hutchison regarding H.R. 1, the “stimulus act”. Here’s her response in its entirety.

Dear Friend:

Thank you for contacting me regarding H.R. 1, the American Recovery and Reinvestment Act of 2009. I welcome your thoughts and comments on this issue.

Our economy is facing dramatic challenges. Financial conditions are rapidly evolving, creating volatility and uncertainty for businesses, small and large, across the country. Tightening credit markets, mounting job losses, and decreased consumer spending are wreaking havoc on the bottom lines of small businesses and the savings of every American household.

In response to the economic crisis, Congressional Democrats unveiled H.R. 1, the American Recovery and Reinvestment Act of 2009, also known as the Stimulus bill. After several weeks of debate, a $787 billion package filled with an array of funding for government healthcare, education, energy, and infrastructure programs was agreed upon.

The Stimulus bill passed on a party line vote, with all but three Senate Republicans opposing the bill, and was signed into law on February 17, 2009. I strongly opposed H.R. 1 for three primary reasons.

First, I believe the most effective way to stimulate the economy is to leave more money in taxpayers’ pockets. Instead of providing significant tax cuts, the vast majority of the Stimulus bill focused on dramatically expanding government programs. In fact, tax cut provisions in H.R. 1 only represented 27 percent of the total bill. Furthermore, the few tax relief provisions that were included are likely to be ineffective. The largest tax relief provision in the bill, the Making Work Pay Credit, is a $400 tax credit for individuals and an $800 tax credit for couples that will be distributed though decreased paycheck withholdings. For individuals, this amounts to only an additional $7.69 per week. This meager effort will not stimulate our economy out of the current recession.

Second, I believe any stimulus bill should attempt to expend funding immediately and effectively. Instead, in this bill, of the $311 billion in government discretionary spending, only 11.3 percent, or $35 billion, will be spent in 2009. The remainder of the spending will occur over the next ten years. Stimulating our economy over ten years will not bring immediate relief to those feeling the impact of the economic crisis today.

Lastly, this bill will saddle Americans with a significant amount of additional debt. Our national debt is currently above $10.9 trillion dollars. It is irresponsible for our government to wastefully spend taxpayer dollars by the billions when our nation is operating in the red. In addition, it is unfair to place this mounting financial burden on America’s future generations. I could not support a $787 billion bill that will not provide much-needed tax relief; will not spend the funding immediately and effectively; will not create sustainable, private-sector jobs; and will not address the mounting debt facing our country.

The economic downturn has had a pronounced impact on Texas families and businesses, and I would have supported stimulative measures that were balanced, reasonable in size, and targeted specifically to job creation, keeping people in their homes, and overall economic growth. A better proposal would have emphasized tax relief so that individuals and businesses can have more capital to inject into the economy, and it would have guarded against massive government expansion. History teaches that excessive spending may prolong a recession. Moving forward, Congress must carefully consider the long-term consequences of a fiscal policy premised on borrowing and spending. As Congress continues to consider legislation to address the financial crisis, you may be certain I will keep your thoughts in mind.

For more information on the American Recovery and Reinvestment Act of 2009, please visit http://www.recovery.gov <http://www.recovery.gov/&gt; .

I appreciate hearing from you. I hope you will not hesitate to contact me on any issue of concern to you.

Sincerely,
Kay Bailey Hutchison
United States Senator

284 Russell Senate Office Building
Washington, DC 20510
202-224-5922 (tel)
202-224-0776 (fax)
http://hutchison.senate.gov

PLEASE DO NOT REPLY to this message as it is not a valid e-mail address. Due to the tremendous volume of mail Senator Hutchison receives, she requests that all email messages be sent through the contact form found on her website at http://hutchison.senate.gov/contact.cfm .

If you would like more information about issues pending before the Senate, please visit the Senator’s website at http://hutchison.senate.gov .  You will find articles, floor statements, and press releases, along with her weekly column and monthly television show on current events. You can also sign up to receive Senator Hutchison’s weekly e-newsletter.

Thank you.