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.