Today, His Excellency Bertie Ahern, the Prime Minister of Ireland spoke to a joint session of Congress. Ahern will be stepping down as Irish Premier; his legacy will be synonymous with the longest economic expansion in Irish history.  

Ireland’s recent economic success is thanks to a steadfast reliance on the free market.  In 1987 Ireland’s per capita income averaged about 63% of the United Kingdom’s.  From 1990-1995 their economy grew more than 5% per year and from 1996 to 2000 it exploded to more than 9% per year. 

Prior to the Irish economic boom, Ireland had a 13 year period of stagnation.  Ireland then took an aggressive course of slashing government expenditures, abolishing federal agencies, and cutting tax rates and regulations.  Much to this conservative’s delight, the government made strong pledges to abstain from deficit spending or inflate the currency, and they kept those promises!

This year, the Heritage Foundation ranked Ireland as having the worlds 3^rd freest economy (click here). In case you were wondering, the United States came in at 5^th place (click here), behind Australia, Singapore, Hong Kong, and Ireland.  According to the Organization for Economic Co-operation and Development (OECD), Ireland has outperformed all industrialized economies over the past decade.

In a period of economic downturn, solutions are needed.  However those solutions should not be entrenched in big government ideas, but rather a return to more Laissez-Faire economic policies.

Legislative initiatives such as the Taxpayer Bill of Rights, which includes the Spending Limit Amendment to the Constitution and the Taxpayer Choice Act, are ways that will limit government involvement and encourage free enterprise. 

According to a report published today by The Hill, a Capitol Hill Newspaper, presidential candidate Senator Hillary Clinton (D-NY) has requested nearly $2.3 billion in federal earmarks for 2009.  That is almost three times the largest amount any Senator has received in 2008.

The amount requested by Clinton for 2009 far surpasses the $387 million secured by Senator Thad Cochran in 2008 (R-MS).  As the Ranking Member of the Senate Appropriations Committee, Cochran was the leading recipient of earmarks last year.

Clinton’s opponent Barack Obama and presumptive Republican nominee John McCain both have made it clear that they would not be requesting any earmarks in 2009. 

And yes, Senator Clinton did vote in favor of Senator DeMint’s (R-S.C.) earmark moratorium, along with Senators Obama and McCain. 

The National Taxpayers Union (NTU) recently unveiled their Congressional ratings for the first session of the 110^th Congress.  They derive “ratings” by measuring the strength of support for reducing spending and regulation and opposing higher taxes. The higher the score, the better.  Interestingly enough, no single legislator has scored a perfect 100 in the several years NTU has been conducting its scorecard.  Between 2006 and 2007, the average "Taxpayer Score" in the House fell from 39 percent to 35 percent.    While the Senate's average plummeted by 11 points, from 48 percent to 37 percent.

Only 52 lawmakers attained scores sufficient to receive an ‘A’ and be dubbed friend of the taxpayer. Below you will find a list of those receiving an ‘A’ in the House:

According to the Tax Foundation, in 2008, Americans will work 74 days to afford their federal taxes and 39 more days to pay state and local taxes. Meanwhile, buying food requires 35 days of work, clothing 13 days, and housing 60 days.  

Unfortunately, the numbers don’t lie; government in the United States continues to be a fixture in the budget of the American taxpayer.

In 1900, Tax Freedom day was January 22; roughly 5% of a person’s gross income went towards taxes.  Today, the average person will contribute approximately 30% of their gross income towards taxes at the state, federal, and local level.

Today, April 23 is Tax Freedom day.  Americans should take notice.   

I read this article the other day by Rep. Tom Feeney(R-FL) published an editorial recently about the current state of the economy.  I suggest you take a moment to read on.

Restrictions risk a new Great Depression

Rep. Tom Feeney

April 17, 2008

Picture this scenario:

A market bubble is created by easy-money policy and speculative investment followed by a collapse in market values. Our economy teeters on recession. Politicians reward big labor with new powers at the workplace.

Large government programs are proposed to create taxpayer-funded jobs. Entitlement programs for seniors and the poor are initiated. Temporary "stimulus" packages are passed to placate seniors, farm workers, unions and the unemployed.

Presidential candidates and congressional leaders attack free trade, vow to instate an estate tax on the rich and increase taxes on corporations, individual taxpayers and stockholders. Foreign countries' economies grow at accelerated rates while American jobs disappear.

Regulations are imposed to crack down on Wall Street, while state and federal governments bring lawsuits against demonized corporations for various offenses. Private companies are more heavily regulated to "protect" the public.

Next, the Democratic governor of New York condemns the "increasing concentration of wealth and power." Outcries against excessive executive salaries on Wall Street become widespread.

Sound familiar? Although it sounds like America in 2008, this scenario describes 1929 through 1935.

In her brilliant description of the Great Depression, The Forgotten Man, Amity Shlaes explains how excessive taxes and regulations, along with an attack on free trade, turned a temporary stock-market correction -- which probably would have lasted a year or two -- into an 11-year Great Depression. In 1930, President Herbert Hoover signed huge tax increases on investment and income taxes, as well as the Smoot-Hawley bill that attacked free trade. President Franklin Delano Roosevelt's New Deal enlarged and transformed every aspect of the federal government into a Big Brother that stifled the private sector, job growth and freedom itself.

Most of these programs and government intrusions were popular, and FDR was elected a record four times. But populism cannot reverse the laws of economics. Ireland, Singapore, Hong Kong and even China are growing faster and creating jobs faster than the United States today because their economies are becoming freer (all but China rank freer than us in the Heritage Foundation 2008 Index on Economic Freedom). Even the European Union has a significantly lower corporate tax rate than the United States.

As I write, Democrats in Congress are taking a page from Hoover's handbook. They have voted for the largest tax increase in history -- an average of $3,040 for every hard-working taxpayer in Florida, according to the Heritage Foundation. Both parties have dramatically increased federal spending and entitlement programs. Sens. Barack Obama and Hillary Clinton compete to see who can more quickly destroy trade partnerships. And every day the Democratic majority in Congress proposes huge new government programs and expenditures. New oil and gas exploration and petroleum refineries are prohibited while taxes on energy companies are increased as gasoline prices soar. Proposals to allow unions to organize workers without an open democratic vote have passed the House. To add to an already out-of-control tort system, numerous punitive and excessive regulations on business have been proposed and many have passed. Sarbanes-Oxley alone has driven many companies private or overseas, at a cost to America of $1.4 trillion a year according to one study.

As investors flee Democrats' proposed tax increases and regulatory assaults, job creation is declining. You cannot create jobs by destroying incentives for small business owners, investors and capitalists -- nor can you tax and regulate your way to prosperity. The Soviet Union tried and died. Ireland and China, however, have learned this lesson. Populist demagoguery may win this election, but it cannot revive economic growth and prosperity.

"Less government, less taxes, and more freedom" is not just an outdated slogan, but rather a universal and timeless recipe for economic growth.

U.S. Rep. Tom Feeney, an Ovideo Republican, represents District 24.

Yesterday, the Ensuring Continued Access to Student Loans Act (H.R. 5715) passed the House overwhelmingly, but there were several votes against this bill, mine included.

This legislation creates another emergency government program in an attempt to bailout an existing program with problems caused by changes included in the College Cost Reduction Act, which was passed just last year.  The College Cost Reduction Act was an attempt by the government to essentially place price controls on student loans by capping interest rates that lenders could charge while at the same time cutting subsidies that the government paid to these lenders.

In this Conservative’s view, H.R. 5715 actually creates an even bigger program to fix a government program that failed last year. Instead of just fixing the problems in the original program, Congress in its infinite wisdom, decided to create another program to manage the problems of an existing program. I have urged the Fed to give student loan lenders access to the Fed’s discount window, and favor other tools that we already have at our disposal to add liquidity to the student loan market.

Until then it appears that my colleagues are content with fixing government with even bigger government….I disagree.

Yesterday was the day hard-working Americans sent the IRS their taxes.

It is ironic that on a day millions of responsible people send the government precious dollars, the Democrats in Congress passed legislation to repeal a provision to help enforce our nation’s tax laws. A provision of the American Jobs Creation Act of 2004 gave the Internal Revenue Service (IRS) the authority to use private debt collection agencies to assist in the collection of overdue individual taxes. These are taxes that IRS has admitted they don’t have the man power to go after and would otherwise go uncollected. It is estimated that allowing these private debt collectors could save the federal government between $1.5 billion and $2.2 billion in gross revenue from 2007 through 2016.

It is important to note that during debate on this legislation, Democrats also voted against making permanent the tax cuts of 2001 and 2003 because they say they cost too much. It doesn’t cost too much to let deadbeat taxpayers off the hook, but it does cost too much to let hard working, responsible Americans keep more of what they earn. 

I came across this cartoon yesterday. The day after tax day, you can breathe a sigh of relief, or some of you may still be lost in the maze, either way this cartoon is very appropriate.

You knew this day would come….Tax day. 

I have routinely supplied you with facts about the inadequacies of our tax code, but some of these might startle you.

• This year, 100% of the income the average American earns from January 1st to April 22nd (113 days) will go to pay federal, state, and local taxes in 2008, according to the Tax Foundation.  Therefore, April 23rd will be “Tax Freedom Day,” the day on which the average American will start working for anything besides taxes.  74 days of work this year will just be for paying federal taxes.
• Americans still spend more time working to pay taxes to all levels of government than they spend working to pay medical expenses, put food on their tables, and buy clothing combined.

If nothing is done, and Congress takes no action, by 2011 you can expect the following tax increase:

• 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% and 15% brackets will condense to 15%

• The capital gains rates for individuals will increase from 15% and 0% to 20% and 10%.
• Dividends will no longer be taxed at the capital gains rates for individuals, thereby increasing the double taxation of dividends by as much as 62%.
• The standard deduction for couples as a percentage of the standard deduction for singles will decrease from 200% to 167%--restoring the marriage penalty.
• The top end of the 15% marginal income tax bracket for couples as a percentage of the top end for singles will decrease from 200% to 167%--restoring the marriage penalty.
• The child tax credit will decrease from $1,000 to $500.
• The “death” tax using the “stepped up” basis will return with a 55% maximum rate (including surtax) and a $1 million exemption, after years of decreasing “death” tax rates, increasing exemptions, and one year using the “carryover” basis to calculate the tax due.

Happy Tax Day! (note: heavy sarcasm)

Today I was joined by my fellow members of the Republican Study Committee in introducing the Spending Limit Amendment to the Constitution, one of the 4 legs that will become the “Taxpayer Bill of Rights”.

The undeniable fact remains that the projected growth of federal spending across the board is at an unsustainable rate.  It will threaten the standard of living of our children and grandchildren.  By the year 2040, taxes would have to double in order to pay for all of the federal spending that will compound if no action is taken.

The Spending Limit Amendment has several provisions designed at tackling the fiscal problems in the United States, here are the most prominent:

1.)It puts a lid on Federal Spending- Limits federal spending from growing faster than the nominal GDP.  Thus capping federal spending at 20.0% of GDP.

2.)It requires the President’s Budget to comply with the spending Limit- Requires the President’s annual budget submission to have an overall spending total that complies with the spending limit.

3.)Prevents gimmicks to get around Cap- Prevents Congress from creating a new accounting system that disregards some spending to get around the cap, for instance the vaunted Democrat PAY-GO principle.

4.)Exception for 2/3rds vote of Congress- The Congress may suspend the limit for any reason with a 2/3rds vote of both Houses.

5.)Effective Date- This would take effect the second fiscal year after ratification.  For example: if the amendment were ratified prior to September 30, 2008, it would be effective for FY 2010.

6.) Exception for Declaration of War- The spending limit requirement is waived for any year that a declaration of war is in effect.

The Spending Limit Amendment will prove instrumental in ensuring fiscal restraint and discipline in the federal spending process.

The other day I blogged about my “Put Your Money Where Your Mouth Is” Act.  I received an overwhelming response from groups like Citizens against Government Waste, Americans for Prosperity, the National Taxpayer’s Union, and Americans for Tax Reform. 

This morning the “Put Your Money Where Your Mouth is Act” was featured in the Wall Street Journal.  For your reading pleasure I’ve included the text below:

The Tax Me More Act
April 11, 2008
Wall Street Journal, Page A16

We recently suggested that if Bill and Hillary Clinton are eager to pay more taxes, they should write a personal check to the U.S. Treasury to compensate for the lower tax rates they so frequently decry. And lo, here comes legislation to make it easier for the former first lady and other pseudo-populists to do just that.

California Republican John Campbell yesterday introduced in the House his "Put Your Money Where Your Mouth Is Act," which would amend the tax code to allow individuals to make voluntary donations to the federal government above their normal tax liability. The bill would place a new line on IRS tax forms to make this easy.

Mr. Campbell says he has heard the "cries" of those wealthy Americans – Mrs. Clinton, Warren Buffett, Barbra Streisand – who reject the lower tax rates passed in 2001 and 2003 and complain that they and their fellow rich don't pay enough. "It's a great injustice that citizens wishing to fulfill their dream of paying more taxes cannot simply check a box on their 1040 form to make a donation," he says. His bill would give liberals a chance to salve their consciences without having to raise taxes on millions of Americans who already feel overtaxed as it is.

Still, don't expect many to take Mr. Campbell up on his offer. The Treasury already accepts voluntary donations to decrease the nation's debt; last year it received all of $2.6 million. Apparently even most liberals would rather keep their money, or bequeath their estates to charity rather than to the IRS.

On Thursday, I will officially roll out my “Put Your Money Where Your Mouth Is” Act, in a press conference in Washington D.C.  This bill will amend the Tax Code to allow individuals to make voluntary donations to the federal government above and beyond their normal tax liability, and actually put a line on the IRS tax form to make it easier to make donations. 

Last week, Presidential Candidate Senator Hillary Clinton stated that "We didn't ask for George Bush's tax cuts. We didn't want them, and we didn't need them."

On Monday, the Wall Street Journal printed an editorial that proclaimed:

“If the former first lady feels so strongly that she should pay more taxes, we suggest she lay off the middle class and instead write a personal check to the U.S. Treasury for the difference between the Clinton and Bush tax rates."

It’s time Senator Clinton and other high-profile liberals like Senators Hillary Clinton (NY) and Barack Obama (IL), Warren Buffett, and Barbra Streisand who have publicly stated that Americans should pay more taxes, to put their money where their mouth is.

To the regular readers of this blog, it is no secret that Congressman Jack Murtha (D-PA) is the “King of Pork”.  That dubious honor is not a fleeting one.

Last week CBS news ran a piece on Congressman Murtha and his pork barrel politics. According to an estimate from Taxpayers for Common Sense(TCS), Over the past 4 years alone, Murtha has managed to secure more than $600 million in earmarks, and $2 billion since 1992.

In FY 2008 Appropriations bills Mr. Murtha garnered $160 million worth of earmarks.  Every private entity that received an earmark from Mr. Murtha also made a campaign contribution, according to information from TCS.

This kind of behavior of receiving earmarks for campaign dollars is reprehensible, and a dreadful way of spending your tax dollars.

To see the rest of the CBS report see the video below.

Soon the Capitol Dome may have new lights.  Speaker Pelosi’s Green the Capitol initiative has been the subject of much debate among spending advocates and Members of Congress, and the Capitol Dome illumination plan is no exception.

The “Green the Capitol Initiative” is part of Speaker Pelosi’s environmental policy which includes increased usage of recycled paper, and carbon offset purchases for the House’s greenhouse gas emissions.

Green the Capitol includes an update of the lighting system that illuminates the Capitol Dome at night time.  The contract chosen by the House Administration Committee, worth $671,900 (not including installation), was steered to Rep. Robert Brady’s (D-PA) district - despite receiving other less expensive bids.  As an aside, Mr. Brady is chairman of the House Administration Committee.

I agree that we have a responsibility to be good stewards of the environment, but it must be done in a consistent manner.  Dan Beard, The House Chief Administrative Officer, said of this new lighting project: “We’re not going to drastically cut our energy consumption…”  If Speaker Pelosi would like to upgrade the Capitol’s lighting system at such an exuberant cost, why doesn’t she just come out and say it? 

Furthermore, it would take more than 45 years to recoup the money spent on the new “energy efficient” systems design. 

My question is this, if it is not going to significantly cut energy consumption, and it will actually cost more money in the long run, what is the goal of such a extensive and costly overhaul?

This morning I joined Citizens Against Government Waste (CAGW) in announcing the release of the 2008 Congressional Pig Book.  CAGW has been releasing the Pigbook as an expos of the wasteful pork-barrel spending in Washington for the past 18 years.

For FY 2008, CAGW found that the porkers in Congress stuffed 11,610 separate pork projects into the 12 appropriations bills.  This marks the second highest total ever of pork projects, totaling $17.2 billion.  That is a 337% increase over the 2,658 projects in fiscal year 2007, and a 30 percent increase over the $13.2 billion total in fiscal year 2007. Out of the 11,610 projects in the 2008 Pig Book there were 11,146 disclosed projects worth $13.8 billion and 464 undisclosed projects worth $3.4 billion.

The CAGW Pigbook highlights many of the earmarks of which I have called to question on the floor of the house including Chairman Charlie Rangel’s infamous “Monument to Me”.

Some other egregious examples include:

 $3 million for The First Tee;
 $1,950,000 for the Charles B. Rangel Center for Public Service;
 $460,752 for hops research;
 $211,509 for olive fruit fly research in Paris, France;
 $196,000 for the renovation and transformation of the historic Post Office in Las Vegas;
 $188,000 for the Lobster Institute in Maine; and
 $148,950 for the Montana Sheep Institute.

You can find a PDF copy of the 2008 Pigbook here, or at my website.  www.campbell.house.gov