What Congress can do to help economy

Our elected politicians to Congress need a lesson on economics as our country wallows in low growth and high unemployment. Extending unemployment benefits again and again does not create jobs - it just maintains the status quo. Do unemployed people buy homes and make other large purchases?

Stimulus spending plans offer a temporary boost but add to our astounding debt that will require austerity in coming years depressing our economy later.

What Congress needs to do now:

l Pass an investment tax credit. This gives a powerful boost by encouraging purchasing of equipment and other capital expenditures to maintain and grow jobs. The purchases themselves also maintain and create jobs for the maker of the products. This could be engineered to favor small business and American-made products if desired. Another plus is the sales tax revenue from the purchases.

l Next, Congress needs to take a breather on laws that burden good businesses with regulation. The uncertainty and expense created by over-regulation have caused business owners to remain cautious about expanding employment. Note the 20-plus new taxes and 46-plus regulatory agencies created just by the health care reform bill.

l Delay, modify or phase in the tax increases coming in 2011. Talk about an economy killer, this is it. Find ways to cut unnecessary spending instead.

Let your elected representatives know they have to start being economically smart. Jobs, your retirement savings and the health of our country depend on it.

Loren Kiel

Decorah