Republicans offer alternative stimulus proposal

Republicans offer alternative stimulus proposal to President Courtney
By Senate GOP,

“Oregonians are hurting, they need help paying for milk, heat, food, rent”

Salem, OR — Senate Republicans met with Senate President Peter Courtney (D-Salem) Friday morning to offer an economic stimulus proposal designed to immediately put money back into Oregonians’ pockets and create long-term, lasting jobs. The plan would simply give Oregonians part of their tax refunds now, rather than next year. Republicans are offering an opportunity to forge a plan that involves key investments in needed infrastructure and some financial relief for Oregonians.

“Oregonians are hurting as they face reduced hours and record unemployment; they need help,” said Senator Brian Boquist (R-Dallas). “Every extra dollar in the average Oregonians’ paycheck helps pay for winter coats, school books, the heat bill or rent. This plan puts money back into their pockets and back into the economy where it will create permanent, local jobs.”

The plan proposes a reduction to the income tax withholding tables that will put more money back into every Oregon employees’ paycheck. By reducing tax withholdings immediately, $100 million will be put directly into the Oregon economy over the next 6 months to help create jobs. It will also serve to increase consumer confidence, a crucial key to economic recovery. The plan will cost $50 million this budget cycle, which Republicans propose paying for by rescinding part of last year’s $358 million in pay increases the Governor handed out to state employees.

Republicans also proposed an emergency declaration for $1 billion in bonded projects scheduled to be sold over the next 6 months so that the projects they fund can be started quickly. The projects, already planned and authorized, will create thousands of jobs and can be accelerated by removing bureaucracy and red tape so that economic stimulus can be created immediately.

“We would like Senate Democrats to work with us to craft a stimulus package that does more than simply go on a borrowing binge which only puts Oregonians to work for a few weeks. Instead of creating busy work, let’s create lasting jobs,” said Senator Ted Ferrioli (R-John Day). “We are open to bonding that might allow us to invest in careful, thoughtful investments in key infrastructure for the future.”

Republicans, who learned of Courtney’s borrowing plan only last week, are saying “President Obama has set a commendable example of how to construct a bi-partisan stimulus package that includes all parties and perspectives using a “go slow” approach at the front end. Obama’s stimulus proposal has brought Republicans and Democrats to the table and includes both infrastructure investments and tax relief. Republicans are calling on Courtney to follow Obama’s example and include Republicans in the creation of a state stimulus package.”

The non-partisan Congressional Budget Office (CBO) echoed the views of many economists who say the most effective way to stimulate the economy is to provide money either through tax cuts or direct payments.