A Strong Economy: The Proof is in the Numbers
Congressman
Tom Cole
Tom Cole
March 07, 2006
Despite the challenges of this year, including Hurricane Katrina and high energy prices, the economy continued to expand for the fourth consecutive year in 2005. The news gets even better--economic forecasters are predicting another year of growth, historically low unemployment and continued low inflation and interest rates in 2006.
Tax and economic policies, enacted over recent years, that put more money back in the pockets of more Americans, are working to grow our economy and create jobs. The proof is in the numbers:
We will be working this year to ensure that tax cuts passed over the past few years are made permanent and other policies are signed into law that will continue this economic upward trend.
Tax and economic policies, enacted over recent years, that put more money back in the pockets of more Americans, are working to grow our economy and create jobs. The proof is in the numbers:
- Payroll employment rose by 193,000 jobs in January and an average of 229,000 over the past three months. There have been 29 consecutive months of payroll job gains. Almost 4.8 million new jobs have been added to the nation's payrolls, which brings the total amount to almost 2.2 million new payroll jobs over the past year.
- In Oklahoma, the economy report was also bright in 2005. In December 2005, the unemployment rate in Oklahoma was lower than the national average at 4.2 percent. According to the Oklahoma Department of Commerce this is the lowest unemployment rate in the region. Oklahoma's labor force increased by 27,300 people (or 1.6%) between December 2004 and December 2005.
- The Bureau of Labor Statistics reported the employment statistics for January, showing that the unemployment rate dropped to 4.7 percent. This is the lowest level since July 2001.
- The Congressional Budget Office (CBO) reports that capital gains receipts in 2004 appear to have been much stronger than previously estimated, and early projections indicate this positive trend continued in 2005. Based on preliminary data from the IRS, the CBO now estimates that capital gains realizations for 2004 were $98 billion higher than the CBO projected in January 2005. The revised estimates indicate that taxpayers realized $479 billion in capital gains in 2004. The CBO now projects that 2005 capital gains realizations will total about $539 billion. As a result, the Treasury will likely reap about $75 billion in receipts from capital gains in 2005, a 25 percent increase over 2004 receipts.
- Real gross domestic product was revised upward from an annual rate of 1.1 percent to 1.6 percent growth in the fourth quarter of 2005, for a total of 17 straight quarters of growth. Although the growth of GDP slowed in the fourth quarter of 2005, economists are already looking to the first quarter of 2006 for a large rebound. Forecasts for GDP growth during the first quarter of 2006 are ranging from as high as a 4.5 percent annual growth rate to a 4.1 percent annual growth rate.
We will be working this year to ensure that tax cuts passed over the past few years are made permanent and other policies are signed into law that will continue this economic upward trend.
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