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May 7,
2009 Volume
5, Number 18 | ||
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In This
Issue
E-Mail
cynthia.davis@house.mo.gov Special
Committee on Children and Families
Chair
Chair Special Committee on State
Parks and Waterways Official Homepage for Official Government Homepage for your
Look up Missouri House Bills – View
Entire Text, Summary, and Last Action Look up Consumer Federal
Links Congressman Blaine
Luetkemeyer |
The
Short and Skinny of the Stimulus This year, our state budget added up to about $22
billion. The federal government has offered about $4 billion of
economic stimulus money to the state. Of that, about $2 billion must
go to Medicaid and education. The other $2 billion is available for
us to use as we see fit. While some people may think it would be fun
to go on a spending spree, this is not in the best interest of the
state. Furthermore, those in the federal government who are sending
us this money may not truly understand from where this money is coming.
It is coming from us. The stimulus money is
nothing more than a pre-payment from taxes we are going to owe in the
future. We are charging today to the proverbial credit
card.
The best way to help people is to give them a
break on their taxes, which was the gist of SB 71 passed in the House last
week. We win both ways. If the constituents save their money, the
banks have more to lend out to others who need it. If they spend
their extra money, more money circulates in the economy. I voted to
give our residents a 1/2 percent reduction on their state income
taxes. This is the fairest way to spend the stimulus money because
it goes to the broadest group of people and would be spread geographically
to all parts of the state. While some belittle the idea, thinking a few
dollars here and there won't make much of a difference, I disagree.
It is downright arrogant to presume extra dollars in a paycheck won't
matter. If it were true that a few extra dollars don't matter, then
why do businesses and restaurants offer coupons? Why were people
unhappy when gas was $4.00 per gallon instead of $1.99 per gallon?
Why do people get up in the middle of the night after Thanksgiving to
shop? These examples are proof that a few dollars do matter.
The distinguishing point between two contrasting
philosophies comes down to who should decide how to spend the money: the
government or the taxpayer? I believe in the intelligence of the good
people of Some think that crafting a budget is about
finances. However, it really has more to do with philosophy.
With the stimulus money, we are charged with determining what would
be in Missourians' best interests for the long term, not for right
now. If you hand ten dollars to a child and instruct him to buy
whatever he wants in a grocery store, he is likely to come home with ice
cream and cake. It takes a mature adult to buy meat and potatoes for
the entire family to consume. Likewise, a good budget carefully
crafted on principles that are good for all of us will be better in the
long run than purchasing fun projects that will win us lots of friends in
the short term, but leave us bankrupt over
time. If we expand government programs, we will be
obligated to continue to support a higher number of people for future
years, when we will not have another boatload of money dumped on us.
If we build more buildings, they will need to be heated in the winter,
cooled in the summer, and maintained when things break or are
vandalized. Buildings create ongoing expenses that go far beyond
mere construction. Making decisions about bunches of money is not as
easy as dealing with a scarcity of money. When we don't have enough,
we simply revert to our basic obligations. Here are some thoughts to
consider about the offer of stimulus funds:
I believe the people know how to spend their own
money better than the government can. At the time of my writing
this, it is still unclear what kind of budget we will have by our
statutory deadline, which is tomorrow. Let's see if we can hold the
line and govern responsibly. If you would like to see the
video showing the debate and approval of a state income tax break, click
here: House Floor Video on
SB71. (I am shown for a few brief seconds speaking in
favor of the proposal, but you have to watch carefully because it goes by
so fast.) If you want to hear the audio
of my remarks, click here: Economic Stimulus. Your
thoughts are important to me, so please let me know what you think about
use of the stimulus money. You can send me your opinion by clicking
here:
Cynthia Davis Visitors
of the Week
Jim Koetting and
daughter Morgan (center) traveled to the Capitol to discuss the ins and
outs of public investment. The House of Representatives welcomed
Morgan by naming her an Honorary Page of the Day. I enjoy seeing our
young people take an interest in events at the
Capitol! Cynthia
in the News Stimulus
strife continues as time runs out
Tax cut
passes; Ellis Fishel may show up again.
By Terry
Ganey April 30,
2009 (original posting) House
votes permanent income tax cut
Apr. 30,
2009
" Just because In this case, the estate is
billions of dollars in federal funds from the economic recovery
act. With one week remaining to
approve a budget, Nixon, the House and the Senate have different opinions
over how about $2 billion in federal stimulus funds should be spent. The
differences manifested themselves yesterday, when the House defeated a
plan to spend federal dollars on construction projects and later approved
a state income tax cut.
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