House Majority Whip Rep. Kevin McCarthy: the President needs to step up and lead by backing a realistic budget, revising the tax code and bringing spending under control

 "Rep. Kevin McCarthy, R-Bakersfield and House Majority Whip, gives us his weekly view from Capitol Hill. In his own words:


 "Those of you who read this blog know the magnitude of our growing debt crisis.  In Fiscal Year 2012, Washington took in $2.5 trillion and spent $3.8 trillion.  Our national debt has surpassed $16 trillion and is now larger than our $15 trillion economy.  This is unsustainable.

 "The first step towards saving our country from this debt crisis is having the House and Senate pass a budget. The House has passed a budget.  The Senate has refused to act.  That’s why this week, I led my colleagues in passing a bill requiring the House and Senate each to pass a budget. If either chamber fails, their pay would be withheld. The principle is simple: No budget, no pay. While the House has passed a budget every year since 2011 to outline budget and spending priorities, the Senate has failed to produce this basic framework required by law for four years and counting.  The iPad wasn’t even on the market the last time the Senate passed a budget. By passing the No Budget, No Pay Act by a bipartisan majority of 285-144, the House will hold the Democratic-controlled Senate accountable so we can begin addressing our debt crisis.

 "Working families in our local communities find ways to cut costs and save money and the federal government must also. The House is preparing a new budget with immediate spending cuts that puts us on a path to balance the budget.  And in a matter of weeks, the President will present his ideas in his State of the Union Address. I hope he tackles the issues most important to local families and small businesses I consistently hear as I travel around our communities.

 "First, I hope the President acknowledges that we face a serious challenge from our burdensome spending-driven debt. Debt hurts our nation’s economic growth by hindering private investment, creating uncertainty, and increasing interest payments that could go to more productive investments.

 "Second, I hope the President embraces growing our economy by joining Republicans to fundamentally reform our tax code. Not by raising taxes, but by making the tax code less complex, lowering rates, and broadening the base.  Let America’s best and brightest innovators and entrepreneurs compete, expand and make needed investments to grow and hire.

 "Third, I hope the President recognizes the need to rein in regulations hurting small businesses. Just talk to local small business owners about California’s regulatory climate and you’ll hear how difficult it is to stay afloat.  Unfortunately, we’ve seen major regulations balloon out of this Administration that could hurt the pocketbooks of hardworking Americans.

I stand ready to tackle these issues as we have over the past two years.  It’s time for the President and Senate Democrats to join us in taking real action to cut spending, reform entitlements, and grow our economy. If we don’t act now, future generations will have less opportunities and more debt. That is a future I do not accept. Making the Senate pass a budget is an important first step.

House Majority Whip Kevin McCarthy: rising public debt is a threat to the next generation while federal policies are a headwind to economic development

 Fresh off the fiscal cliff vote in an embattled Congress, House Majority Whip Kevin McCarthy (R-Bakersfield) gives us his weekly view from Capitol Hill. In his words:

 "This past week, we rang in the New Year and the 113th Congress was sworn in. I am honored to continue to have the opportunity to serve the residents of California’s 23rd congressional district.

 "Across the Central Valley to the Indian Wells Valley and down to the Antelope Valley, families and small business owners endure the burden of regulations, taxes and litigation. We face a sluggish economy, budget deficits and a national debt of over $16 trillion that threatens our country’s fiscal security. All the while, we also endure the burden of interest payments and uncertainty as well.

"To overcome our obstacles, we must have an economy that thrives on freedom and individual opportunity. Rising public debt burdens future generations and hinders private investment. Economic prosperity requires innovative ideas that spark new small businesses led by hardworking individuals that are willing to take risks.  That requires a business climate that reinvigorates our nation’s entrepreneurial spirits and that remains our goal for the New Year.

 "Unfortunately, policies coming out of Washington are a headwind to economic development. We don’t have a revenue problem, we have a spending problem, and that is why I am committed to cutting spending to reduce the deficit so we can begin to pay down the national debt, creating certainty in the marketplace to help foster for long-term business planning and investment.  With over $16 trillion in national debt and massive state deficits, we must get our fiscal house in order so that we may spare our children and grandchildren from the burden of our debt.

 "Now is the time for the new Congress to step up and find meaningful, commonsense solutions for spending reductions and tax and entitlement reform to help grow our economy and create jobs.  As Majority Whip, I will continue to fight for Kern County and the Central Valley, from water for our farmers to lower taxes for our small business owners to regulatory reform to unleash responsible American energy development right here in our communities.  There is no reason that we can’t work to reduce unemployment, increase small business start-ups, and spur American innovation.

 "Despite the challenges we face, I am optimistic about our future because of the work ethic, resiliency and entrepreneurial spirit of American families and small businesses. The path to American prosperity is a framework that simplifies our tax code, cuts federal spending, and reforms our entitlement programs, and that is what I will continue to fight for. The next Congress will play a critical role in reviving our economy, creating jobs, ending the tax and regulatory war on American job creators, and solving our nation’s spending-driven debt crisis which menaces our children and grandchildren. As Majority Whip in the House, I will continue to fight so that every American has the opportunity to pursue and achieve their hopes and dreams and I welcome your input and ideas."

McCarthy: simplify the tax code, cut spending and reform entitlement programs

 House Majority Whip Rep. Kevin McCarthy (R-Bakersfield) gives us his weekly report from Congress. In his words:

"This week in Bakersfield, we celebrate the homecoming of two local heroes, Lance Corporal Josh Brubaker and First Lieutenant Sam Van Kopp. The outpouring of support and the huge crowds that showed up to welcome these two brave men home reflect the remarkable community that we live in.  Veterans and families across Kern County, many who did not know these heroes personally, came to thank them for their service, sacrifice, and dedication to our nation. As we reflect on the sacrifices these men have made, let us also remember the men and women in uniform that continue to defend us and are not home with their loved ones during this holiday season.

"Also this week, many other parents are welcoming their children and family home from around the country as the holiday season begins. I know Judy and I are excited  that our son Connor will be coming home from college and joining us and our daughter Meghan for Christmas. As we think about Christmas, our families and our families’ future, we cannot ignore the burdens that our growing national debt poses to our children and to hardworking families in our communities.

 "Like all parents, we want to ensure that our children grow up in an America where their opportunities are limitless, not limited. We want a future that is not burdened by debt but emboldened by opportunity – when my children were still both in high school a couple of years ago, their shares of the national debt were $45,000 each. If this trend of growing debt continues, by the time they begin their own families, their individual share, and that of their children, will have grown to $100,000. That is both unacceptable and unsustainable. We need to cut spending and pay down our national debt. The numbers show that if we do nothing, every federal tax dollar will be consumed by our entitlement programs which will soon be insolvent if nothing is done.

 "It’s time for all sides to get serious in averting the fiscal cliff before the end of the year and prevent the permanent $4 trillion tax hike on January 1st that every American faces. We cannot negotiate with ourselves.  Throughout our community, we all know mothers and fathers who continue to give up scarce family time working overtime to provide for their children. Parents not only work to get their kids out of bed and off to school, but are working harder outside the home to support their families.  American families deserve to keep more of their hard-earned money. To get our fiscal house in order and to reinvigorate our economy, we need to simplify our tax code, cut spending, and reform our entitlement programs. I hope the President and the Senate become willing participants to change the direction of our country.  There’s no better time than the holidays to come together.

"We wish everyone a Merry Christmas and a Happy New Year!

McCarthy: The fiscal cliff must be avoided but a deal must deal with our mounting national debt and the tax burden carried by small businesses

 The weekly note on BakersfieldObserved from House Majority Whip Kevin McCarthy (R-Bakersfield) returns. This week he talks about the negotiations to avoid the fiscal cliff. In his words:


"The discussion this week centers on actions to avert the fiscal cliff. This week, I organized a meeting with National Commission on Fiscal Responsibility and Reform Co-Chair Erskine Bowles and business leaders across the country to put solutions on the table.  It is critical that we find ways to revitalize our economy and address our rising national debt.
 "We need to take actions that encourage economic growth in America. We need to simplify the lives of our small business owners and entrepreneurs and let them innovate and create.  We need to look at policies that spur investment that expands our economy.  By taking actions that lead to more hiring and economic growth, the result would be more Americans working.
 "Many local small businesses file as S-corporations where business losses and profits are taxable directly to the individual owner. A study by Ernst and Young shows that our economy has about 900,000 business owners that would be harmed if tax rates go up, resulting in an estimated 710,000 fewer jobs.  All the while, our economy as a whole is burdened with one of the highest business tax rates in the developed world. A pro-growth tax reform strategy combined with spending cuts is vital not only to control our debt and deficits, but to spur our economy.
 "On top of tax reform, it is critical that we outline the spending cuts and reforms to our entitlement programs that will preserve these programs and reduce our debt. The President cannot ignore the major drivers of our debt and as Americans, we must tackle these challenges.  Editorials by the Washington Post and The USA Today outline that we cannot truly address our fiscal health without real presidential leadership on reforming our entitlement programs.  If we don’t address these issues, our entitlement programs have the potential to consume every dollar in the federal budget.
 "In past blogs, I have said many times that we need to address our unsustainable national debt.  A recent study by Stanford economist Michael Boskin quantifies and shows the negative effects of debt on our nation’s future economic prosperity.  Higher debt results in interest payments that could go to other investments; more borrowing hampers private sector investment, and creates more uncertainty. Washington cannot continue to burden our economy with one of the highest business tax rates, additional regulations, and policies that hinder investment and expansion. Let’s agree to a framework that reforms our tax code to spur the economy and finds additional spending cuts to address our deficit.
 "On a personal note, good luck to our local high school teams playing for the CIF Central Section Championships. I remember these days when I was at BHS and I know it’s an especially exciting time for our high school seniors at Garces, Ridgeview, Wasco, and Bakersfield Christian.