Republican Plan to Slash Education, Cancer Research Instead of Cutting Corporate Welfare Would Bring Economic Recovery to Grinding Halt
Washington DC -- The funding plan U.S. Representatives Charlie Bass (R-NH-2) and Frank Guinta (R-NH-1) want to become law would cost 3,400 jobs in New Hampshire, according to a new study released by the U.S. Senate’s Democratic Policy Committee. Nationwide, the study found that the plan to fund government through September 2011, which leaves in place billions in corporate welfare and tax loopholes for billionaires, would cost 700,000 American jobs.
Numerous nonpartisan economic experts, including a team from Goldman Sachs, have similarly found that the plan approved by virtually every House Republican and no Democrats in the dead of night on February 19, would bring our fragile economic recovery to a screeching halt.
Moody’s chief economist, Mark Zandi, projected that the House proposal would cut real GDP growth by 0.5 percent in 2011 and 0.2 percent in 2012. That, in turn, would lead to 400,000 fewer jobs being created than expected by the end of this year and a total of 700,000 fewer jobs by the end of 2012.
And a Goldman Sachs analysis released last Wednesday also concluded that Republicans’ 2011 cuts would be detrimental to the economic recovery. The House GOP’s plan, the analysis found, could cut the nation’s economic growth by 1.5 percent to 2 percent during the second and third quarters of this year.
“Under the House Republican spending plan, you’ve got no long-term deficit reduction, no change in corporate welfare and lopsided tax breaks for the wealthiest Americans, massive cuts in disease research, education and transportation, and huge job losses,” said Americans United for Change executive director Tom McMahon.
“Congressmen Bass and Guinta both owe their constituents a very good explanation why they voted to protect Corporate America’s bottom line over 3,400 jobs back home in New Hampshire. We need a responsible and balanced plan to rein in deficits, not one that leaves in place corporate welfare and lopsided tax breaks in place for the wealthiest Americans but costs jobs, slashes vital education and other services for the middle class and the most vulnerable members of society,” added McMahon.