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Romney to House GOP: Tax Cuts, Not Rebates

Former Massachusetts Gov. Mitt Romney (R) wants House Republicans to back permanent tax cuts, not one-time tax rebates, to stimulate the economy.

Romney, who plans to appear before a House GOP hearing about stimulus plans on Thursday, will tell lawmakers that rebates, such as the one sent to taxpayers by the Bush administration last summer, won’t do much to increase consumer demand, needed to jumpstart the economy.

“I do indeed believe that careful, skillfully crafted stimulus can improve the prospects for recovery. But excessive and sloppy spending and one-time refund checks could have the exact opposite effect than that which the stimulus seeks,” Romney will say in his testimony, which was posted on The Corner.

Romney plans to warn Republicans against more government regulation and public programs in the stimulus and says that the emphasis in any recovery plan must be placed on private investment. He also argues against the bill backed by unions and many Democrats that would allow workers to unionize without a secret ballot vote.

“It is an idea that would have devastating impact on the economy — short term and long term,” Romney said. “It would lead investors to send their funds elsewhere, businesses to expand elsewhere and jobs to relocate elsewhere.”