FACT SHEET: SENATOR MARCO RUBIO’S REPUBLICAN ADDRESS TO THE NATION

Rubio: “Economic growth is the best way to help the middle class. … I hope the President will abandon his obsession with raising taxes and instead work with us to achieve real growth in our economy.”

RUBIO: LIMITED GOVERNMENT & FREE ENTERPRISE – NOT BIG GOVERNMENT – WILL STRENGTHEN AMERICA’S MIDDLE CLASS Rubio: “Presidents in both parties – from John F. Kennedy to Ronald Reagan – have known that our free enterprise economy is the source of our middle class prosperity.

 Enacted After His Death, Kennedy’s Tax Relief Cut The Top Marginal Rate To 70% From 91%. The Economy Grew 5.5%, Unemployment Dropped To 3.8% & The Annual Deficit Shrank From $7 Billion To $1 Billion.

Rubio: “This idea – that our problems were caused by a government that was too small – it’s just not true. In fact, a major cause of our recent downturn was a housing crisis created by reckless government policies.”

 Forbes: “There is very little doubt that the underlying cause of the current credit crisis was a housing bubble. But the collapse of the bubble would not have led to a worldwide recession and credit crisis if almost 40% of all U.S. mortgages--25 million loans--were not of the low quality known as subprime or Alt-A. These loans were made to borrowers with blemished credit, or involved low or no down payments, negative amortization and limited documentation of income. The loans’ unprecedentedly high rates of default are what is driving down housing prices and weakening the financial system. The low interest rates of the early 2000s may explain the growth of the housing bubble, but they don’t explain the poor quality of these mortgages. For that we have to look to the government’s distortion of the mortgage finance system through the Community Reinvestment Act and the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.” (Forbes)  Forbes: “Barney Frank--the chair of the House Financial Services Committee and a longtime supporter of Fannie and Freddie--admitted that it had been a mistake to force homeownership on people who could not afford it. Renting, he said, would have been preferable.” (Forbes)

Rubio: “More government breeds complicated rules and laws that a small business can’t afford to follow.”

 Rubio Supports Bringing Greater Accountability & Transparency To Federal Rule- Making By Enacting The REINS Act. Introduced in 2011 by U.S. Senator Rand Paul (R-KY) the “Regulations from the Executive In Need of Scrutiny Act of 2011” (or REINS Act) would require that Congress must affirmatively approve every new major rule that may result in an annual economic impact of $100 million or more.

RUBIO: OBAMACARE IS A CLASSIC EXAMPLE OF HOW BIG GOVERNMENT CRUSHES THE MIDDLE CLASS Rubio: “For example, ObamaCare was supposed to help middle class Americans afford health insurance. But now, some people are losing the health insurance they were happy with.”

 According To The Congressional Budget Office, Approximately 7 Million People May Lose Their Employer-Provided Health Insurance When ObamaCare Is Fully Implemented.

Rubio: “And because ObamaCare created expensive requirements for companies with more than 50 employees, now many of these businesses aren’t hiring. Not only that; they’re being forced to lay people off and switch from full-time employees to part-time workers.”

 Instead, Rubio Believes We Should Allow Individuals To Purchase Health Insurance Across State Lines: Currently individuals purchasing health insurance are limited to those policies sold in the state in which they live. Allowing companies to compete in all 50 states would give individuals more choice, more options, and lower prices. Further, if people are purchasing insurance from companies across the country, states will be forced to loosen mandates to compete. If Americans can buy their auto and life insurance across state lines, they should be able to do so with their health insurance as well.  Rubio Also Believes We Should Give Individuals The Same Tax Break Given To Businesses When They Buy Health Insurance. Health insurance needs to become patient-centered rather than employer centered. Individuals who purchase their own health insurance should receive the same tax treatment as those employers who provide health coverage. All individually purchased insurance and out-of-pocket expenses should be tax deductible for persons who have at least catastrophic insurance coverage. Coupled with increased portability, the new deduction will encourage the development of an individual insurance market, increase transparency and portability, and reduce costs. Between two and six million middle income Americans are estimated to take up health insurance if the deduction was in place.

Rubio: “And tonight, he even criticized us for refusing to raise taxes to delay military cuts – cuts that were his idea in the first place.”

 Politico: “President Barack Obama’s Top Deputies Believed The Prospect Of Massive Defense Cuts Would Compel Republicans To Agree To A Deficit-Cutting Grand Bargain. Then-OMB Director Jack Lew, now the White House chief of staff, and White House Legislative Affairs Director Rob Nabors pitched the idea to Senate Majority Leader Harry Reid (D-Nev.), Woodward writes. Under the deal, which Republicans accepted after several rounds of bargaining, the federal debt ceiling was raised — staving off a potential financial crisis. Called sequestration, the automatic budget cuts would reduce federal spending by roughly $1 trillion over the next decade, with half the savings taken from national security programs. Despite agreeing that sequestration is bad policy, since all accounts are reduced by an equal amount with no strategy, Republicans and Democrats have been unable to reach a deal to avert the cuts, which take effect Jan. 2.” (Politico)

Rubio: “Economic growth is the best way to help the middle class. Unfortunately, our economy actually shrank during the last three months of 2012.”

 According To The U.S. Commerce Department, The U.S. Economy Shrank In The Last Quarter Of 2012 For The First Time Since The Recession Ended.

Rubio: “But if we can get the economy to grow at just 4 percent a year, it would create millions of middle class jobs. And it could reduce our deficits by almost $4 trillion dollars over the next decade.”

 If Growth Of Real GDP Each Year Was 0.1 Percentage Point Lower Than Is Assumed For CBO’s Baseline Projections, Annual Deficits Would Be Larger By Amounts That Would Climb To $68 Billion By 2022. The cumulative deficit for 2012 through 2022 would rise by $314 billion.

Rubio: “Tax increases can’t do this. Raising taxes won’t create private sector jobs. And there’s no realistic tax increase that could lower our deficits by almost $4 trillion.”

 President Obama’s Favorite Tax Increases Would Have A Negligible Impact On Our Debt. For Example: o Buffett Rule: $5.00 billion in first year o Oil Tax Provisions: $4.75 billion in first year o Carried Interest: $1.30 billion in first year o Corporate Jet: $0.05 billion in first year o The total raised by these tax increases in one year would be $11.1 billion.

RUBIO: ENERGY EXPLORATION, TAX REFORM & REFORMING OUR IMMIGRATION SYSTEM WILL HELP CREATE MIDDLE CLASS JOBS

Rubio: “One of the best ways to encourage growth is through our energy industry. Of course solar and wind energy should be a part of our energy portfolio. But God also blessed America with abundant coal, oil and natural gas. Instead of wasting more taxpayer money on so-called “clean energy” companies like Solyndra, let’s open up more federal lands for safe and responsible exploration. And let’s reform our energy regulations so that they’re reasonable and based on common sense. If we can grow our energy industry, it will make us energy independent, it will create middle class jobs and it will help bring manufacturing back from places like China.”

 As An Easy First Step, We Must Enact Legislation Approving The Keystone XL Pipeline. Introduced in 2012 by U.S. Senator John Hoeven (R-ND), S.2041 would approve the Keystone XL pipeline project and provide for environmental protection and government oversight.

Rubio: “Simplifying our tax code will also help the middle class, because it will make it easier for small businesses to hire and grow. And we agree with the President that we should lower our corporate tax rate, which is one of the highest in the world, so that companies will start bringing their money and their jobs back here from overseas.”

 Lower The Corporate Tax Rate. The U.S. has the highest corporate tax rate among OECD nations. By cutting this tax, we can spur job creation in America and build a more competitive economic environment to attract businesses from across the world.  End The Multiple Taxation Of Income. The U.S. should have a tax system that is simpler, fairer, promotes economic growth, and is easier to predict. The 2001 and 2003 tax cuts should be the law of the land. The Death Tax should be permanently eliminated to protect family businesses, farms and ranches. Washington shouldn’t be able to tax the same income two or three times. That means no more job-destroying double taxation of capital gains, dividends or death.  Fundamentally Reform The U.S. Tax Code. The current tax code hinders economic growth. Too many years of special interest lobbying and class warfare politics have cemented it as anti-family, anti-jobs and anti-competitive. The U.S. should have a tax system that is simpler, fairer and promotes economic growth. We should start moving toward being able to pay our taxes with a single rate on paper the size of a postcard.

Rubio: “We can also help our economy grow if we have a legal immigration system that allows us to attract and assimilate the world’s best and brightest. We need a responsible, permanent solution to the problem of those who are here illegally. But first, we must follow through on the broken promises of the past to secure our borders and enforce our laws.”

 Rubio Recently Joined A Bipartisan Group Of Senators To Introduce The Immigration Innovation (I2) Act of 2013, To Reform The Nation’s Immigration Laws For High-Skilled Workers.  In Addition, Rubio Continues His Work On A Bipartisan Immigration Reform Bill.

RUBIO: REFORMING EDUCATION WILL EQUIP OUR MIDDLE CLASS WITH THE SKILLS TO FILL NEW JOBS

Rubio: “We need to incentivize local school districts to offer more advanced placement courses and more vocational and career training.”

 Rubio Believes That By Encouraging Local School Districts To Partner With Local Industries And The Business Community, Our Country’s Students Can Receive Not Only Advanced Academic Courses, But Also Advanced Vocational And Career Training.

Rubio: “We need to give all parents, especially the parents of children with special needs, the opportunity to send their children to the school of their choice.”

 Support The D.C. Opportunity Scholarship Program. The D.C. Opportunity Scholarship has been a great success for low-income families in the nation’s capital. The program has given many students real opportunities that otherwise do not exist in the chronically ineffective and violence-plagued D.C. public school system. We must support this program’s continuance and expansion.  Improve School Choice Through A Federal Individual & Corporate Income Tax Credit. A federal individual and corporate income tax credit would give corporations the option of donating a portion of their federal income taxes to scholarship-granting organizations. Similar to existing programs operating in several states, including Florida, these organizations provide academic scholarships to low-income students so they may attend a private or parochial school of their choice.  Create A Universal Education Tax Deduction. To spur investments in human capital, we should convert all existing education tax deductions and credits into a single, universal education tax deduction or credit. Ideally, a dollar-for-dollar deduction or credit would be available to all taxpayers for educational expenses, including qualified tuition and related expenses incurred by students attending primary, secondary, and post-secondary institutions, and certain expenses related to home schooling and tutoring. To fund this without contributing to the national deficit, we could reduce or eliminate a number of redundant education tax provisions in current law that would generate about $7 billion annually. On the whole, this would provide tax relief to parents for school supplies, home schooling costs, sending their children to private school or for those saving for their children’s college education.  Make Title I And IDEA Funding Portable For Students In Failing Schools – Students who are attending underperforming public schools, and who are eligible for either Title I or IDEA funds, should be able to use these dollars at another public, charter, private, or parochial school, or have access to supplemental online services of their choice. This will ensure that our nation’s low-income and special-needs children get the quality education they deserve.

RUBIO: WE MUST MODERNIZE OUR FEDERAL FINANCIAL AID PROGRAMS

Rubio: “And because tuition costs have grown so fast, we need to change the way we pay for higher education. I believe in federal financial aid. I couldn’t have gone to college without it. But it’s not just about spending more money on these programs; it’s also about strengthening and modernizing them.”

Rubio: “A 21st century workforce should not be forced to accept 20th century education solutions. Today’s students aren’t only 18 year olds. They’re returning veterans. They’re single parents who decide to get the education they need to earn a decent wage. And they’re workers who have lost jobs that are never coming back and need to be retrained. We need student aid that does not discriminate against programs that non-traditional students rely on – like online courses, or degree programs that give you credit for work experience.”

Rubio: “Today, many graduates face massive student debt. We must give students more information on the costs and benefits of the student loans they’re taking out.”

 Enact The “Know Before You Go Act.” Students are making college decisions with shockingly little information about how likely it is they’ll graduate from a particular school, how much debt they’ll incur, what their future earnings are likely to be and what the likelihood is that they’ll make enough money to pay down their debts after they graduate. To address this information gap, Rubio joined U.S. Senator Ron Wyden (D- OR) to promote the bipartisan “Student Right to Know Before You Go Act” to connect the information collected by states and schools and open up access directly to students and the general public. By allowing states to disseminate this data through a coordinated system, students would not only know exactly what to expect from the institution they are looking to attend but what to expect once they graduate.

RUBIO: WE MUST SOLVE OUR DEBT PROBLEM

Rubio: “Every dollar our government borrows is money that isn’t being invested to create jobs. And the uncertainty created by the debt is one reason why many businesses aren’t hiring.”

Rubio: “The President loves to blame the debt on President Bush. But President Obama created more debt in four years than his predecessor did in eight.”

 Between 2001-2009, The Debt Rose $4.899 Trillion. Under Obama, $5.9 Trillion Has Been Added To The National Debt. (Accessed 2/7/13)

Rubio: “The real cause of our debt is that our government has been spending 1 trillion dollars more than it takes in every year. That’s why we need a balanced budget amendment.”

REPUBLICANS HAVE PROPOSED A PLAN TO SAVE MEDICARE, OBAMA JUST PLAYS GAMES WITH IT

Rubio: “The biggest obstacles to balancing the budget are programs where spending is already locked in. One of these programs, Medicare, is especially important to me. It provided my father the care he needed to battle cancer and ultimately die with dignity. And it pays for the care my mother receives now. I would never support any changes to Medicare that would hurt seniors like my mother. But anyone who is in favor of leaving Medicare exactly the way it is right now, is in favor of bankrupting it.”

 The Medicare Trust Fund Is Projected To Go Bankrupt In 11Years.  Rubio Will Protect Current Benefits For Seniors. It would be fundamentally unfair to make any benefit changes to those who are close to or are already retired. Rubio’s mother currently lives on Social Security and Medicare and he knows these programs are vital to those who have retired. Since the creation of Social Security and Medicare, younger workers have funded programs for the elderly. It is a compact in which workers paid for retirees with the understanding that they would also be looked after by the generation that followed. While reforms are certainly necessary, we must not allow those relying on the benefits to receive less than what they earned. Instead, we should achieve a reformed program that provides comprehensive, guaranteed coverage to the elderly, and with even more options than today’s seniors have, just different on how it works.  In The Last Congress, Rubio Supported A Plan To Save Medicare.

RUBIO: PROTECT 2ND AMENDMENT RIGHTS OF LAW-ABIDING AMERICANS Rubio: “Of course, we face other challenges as well. We were all heart broken by the recent tragedy in Connecticut. We must effectively deal with the rise of violence in our country. But unconstitutionally undermining the 2nd Amendment rights of law-abiding Americans is not the way to do it.”

 Last Week, Rubio Joined A Bipartisan Group Of Senators To Introduce The Excellence In Mental Health Act. This bill puts mental health centers on more equal footing with other health centers by improving quality standards and expanding access to ensure more people can get the mental health care they need.

RUBIO: OUR INFLUENCE IN FOREIGN AFFAIRS STEMS FROM OUR ECONOMIC STRENGTH Rubio: “On foreign policy, America continues to be indispensable to the goal of global liberty, prosperity and safeguarding human rights. The world is a better place when America is the strongest nation on earth. But we can’t remain powerful if we don’t have an economy that can afford it.”

Rubio: “We don’t have to raise taxes to avoid the President’s devastating cuts to our military. Republicans have passed a plan that replaces these cuts with responsible spending reforms.”

 On May 10, 2012, The House Of Representatives Passed H.R. 5652, “The Sequester Replacement Reconciliation Act Of 2012.” This bill would replace the across-the board cuts that would devastate our military and other domestic programs such as law enforcement with common-sense reforms to mandatory spending.  On December 21, 2012, The House Passed H.R. 6844.  On April 25, 2012, Rubio Delivered A Speech Detailing The Future Of American Foreign Policy. “For this century is a time of tremendous challenge. But it is also a time of tremendous promise. This is indeed the world America made. And it is freer and more prosperous than it has ever been. And it can be even better. As Americans we cannot make that happen by ourselves. But the world cannot make it happen without us.”

RUBIO: SOME PROBLEMS ARE BEST SOLVED THROUGH OUR FAMILIES & FAITHS

Rubio: “And the truth is every problem can’t be solved by government. Many are caused by the moral breakdown in our society. And the answers to those challenges lie primarily in our families and our faiths, not our politicians.”

 Rubio Has Stressed The Importance of Engaging Mentors On The Front Lines Of Their Communities, Engaging Faith-Based Organizations, Protecting Our Safety Net Programs & Reforming Them To Enhance Stability, Opportunity & Culture Of Work, & Acknowledging The Problem And Root Causes.

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