WASHINGTON, D.C.—U.S. Congressman Allen Boyd (D-North Florida) today voted against a massive economic stimulus package in the House of Representatives, questioning whether the package will create jobs, help small businesses, and truly strengthen our economy in the short and long term.  The bill, at a price tag of $819 billion, includes $526.5 billion in spending initiatives and $275 billion in tax provisions.  In order to fund the plan, the government will have to borrow the money adding an estimated $347 billion in interest payments to service the debt, which means that the actual, long-term cost of the stimulus package is $1.2 trillion.

 

“ I have serious concerns that this level of deficit spending without a plan toward fiscal responsibility will only make our economic problems worse, ” said Congressman Boyd.  “This stimulus package does not address the issues that we know are at least partly responsible for the economic downturn, and that is years of irresponsible fiscal policies rooted in out-of-control spending and borrowing.”

 

A nonpartisan Congressional Budget Office (CBO) report released on Monday stated that only 64 percent of the stimulus money would filter into the economy over the next 19-month period. 

 

“I want to see a stimulus package that quickly gets money into the hands of the people who are going to spend it and lays out some sort of framework that puts us on a path toward fiscal responsibility,” Boyd said.  “I want the stimulus package to include a strategic way forward that fosters an innovative business environment and leads to job creation and a stronger economy.  Economists all agree that we cannot sustain the level of spending in the stimulus package over the long run, so I want to have more confidence that each provision is temporary, targeted, timely , and truly stimulative.  That is what I hope to see in the stimulus package that ultimately becomes law.”

 

“Our leaders on the local, state, and federal levels must stop selling the notion that we don’t have to pay for the things we do as a community,” Boyd continued.  “Our government performs an essential, but limited, number of functions, and we ought to do those functions, do them well, and be willing to pay for them.  I am hopeful that this economic downturn will result in a renewed interest in Washington from both sides of the aisle to clean up the federal budget and address our long-term fiscal challenges.  We must do so for the health of our economy and the strength of our country.”

 

The House of Representatives passed the economic stimulus package by a vote of 244 to 188 .  The bill now awaits action by the Senate.

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