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Job Creation Solutions
Job creation solutions
The so-called stimulus bill has failed to create the jobs that were promised and has significantly contributed to record budget deficits. In fact, it has caused such economic uncertainty, that employers are afraid to start hiring. Since enactment of this nearly $800 billion spending bill, the American economy has lost 2.4 million jobs overall and 2.6 million jobs in the private sector. We cannot continue along this path.
Instead, here are four job creation solutions that I support:
1. Stop the Tax Hikes on Working Families and Small Businesses
Congressional Democrats and President Obama are poised to let the 2001 and 2003 tax cuts expire, causing a $3.8 trillion tax increase that will affect every American who pays income taxes. Married couples and parents will be singled out for even higher taxes, and there will be significant tax hikes on the very investments that grow the economy and create good jobs. Even the death tax – repealed entirely for 2010 – will be resurrected in January 1, 2011.
Unless the tax hikes are prevented:
- Every American taxpayer would face higher rates
- The marriage penalty would return
- The child tax credit would be halved
- The Death Tax would soar to 55 percent
- The Alternative Minimum Tax would ensnare more than 25 million taxpayers
- Higher taxes would be levied on investments
So how will these looming Democrat tax hikes affect the family budgets of typical taxpayers?
- A family of four earning $50,000 per year could pay more than $2,100 in higher taxes.
- A single mom earning $36,000 per year could pay over $1,100 more in taxes.
- Married senior citizens earning $40,000 per year could pay more than $1,400 in higher taxes.
Raising taxes during the worst economy in decades will kill even more jobs. Tax increases do not create jobs. These massive tax hikes on small businesses and working families will have a devastating impact on job creation and our economy as a whole.
This is why I am a cosponsor of H.R. 4746, which would make the 2001 and 2003 tax cuts permanent. The last thing our economy needs is crushing tax increases. Stopping the looming Democratic tax increases would keep more money in the pockets of America’s working families, encourage investment, and provide financial relief for America’s small businesses.
2. Cut Government Red Tape and Reduce Government Regulation
Excessive federal regulation is a de facto tax on employers and consumers that stifles job creation and hampers innovation and investment in the economy. For example, the new health care law includes thousands of expensive and burdensome mandates and hundreds of billions of dollars in business taxes and penalties. It contains thousands of pages of new regulations to be followed by individuals, employers, health care providers, and states. The House-passed cap-and-trade bill would create nearly 1,500 new regulations and mandates and carry a price tag of well over a trillion dollars. Furthermore, the recently enacted financial regulatory reform legislation creates 243 new formal rule-makings by 11 different federal agencies, 47 studies, and 74 reports. The inclusion of these massive government regulations is one of the reasons I voted against all three of these bills. American small businesses cannot plan for the future with ever-changing rules. As a former small business owner, I understand the burden of too much government regulation. Businesses will not be able to grow and hire unless there is some economic and regulatory certainty. To provide stability, no major new rule proposed by an executive agency should be enforced without congressional approval.
3. Provide Incentives for Small Business Growth
Small business is responsible for roughly 70 percent of all job creation in the economy. This is why I support legislation that will allow small business to grow and hire by cutting taxes and encouraging entrepreneurship by rewarding risk. For example, I support H.R. 5029, the Economic Freedom Act. This bill would terminate the TARP and repeal the remaining stimulus, replacing them with a real stimulus plan to create jobs by:
- Cutting the payroll tax in half for 2010
- Eliminating the individual and corporate capital gains taxes
- Reducing the Corporate Tax Rate to 12.5%
- Permanently Eliminating the Death Tax
- Providing Immediate Business Expensing
In addition, I believe that businesses with fewer than 500 employees should be allowed to take a tax deduction equal to 20% of their income. This would allow for extra capital for investment and new hiring to kick start a robust recovery.
4. Spending Cuts Instead of More “Stimulus” Spending
The spending spree in Washington is hurting our economy, not helping it. Nevertheless, Speaker Pelosi and President Obama seem intent on continuing their failed tax-and-spend policies. I have always been one of the most fiscally responsible Members of Congress and one of the most outspoken leaders on reducing government spending. According to the budget watchdog group National Taxpayers Union (NTU), in 2009, I voted for or cosponsored legislation that would cut nearly $107 billion from the federal budget. By comparison, the overall Republican average is $72 billion. This dedication to reining in spending is one of the reasons why I was named a “Taxpayer Hero” from the Citizens Against Government Waste.
In order to get spending, deficits, and debt under control, I am a co-sponsor of H.R. 5323, the SAFE (Saving America’s Future Economy) Act, which will limit annual increases in federal spending to the sum of percentage increases in population growth and inflation. This bill will reduce the deficit each year until a balanced budget is reached in six years.
Furthermore, I support a fiscally responsible budget resolution (H.Con.Res. 281) that improves the budget outlook in every single year. This budget makes some difficult but necessary choices and proposes some long-term solutions to our budget problems. For example, this budget:
- Proposes $6.4 trillion less debt than President Obama's budget
- Balances the budget by FY 2019
- Includes $1.7 trillion of tax relief over the next five years
- Makes real reductions to non-defense discretionary spending
- Roots out wasteful, unnecessary, or lower-priority spending by requiring each congressional committee to find savings equal to one percent of total mandatory spending under its jurisdiction
- Repeals the Troubled Asset Relief Program (TARP), saving taxpayers $36 billion
- Provides for medical liability reform
- Freedom to purchase healthcare across state lines
- Opens ANWR to leasing
- Ends taxpayer funding of presidential campaigns
- Reforms food stamp spending
- Sells a small percentage of federal assets
- Assumes repeal of President Obama’s health care takeover
- Makes NO changes to Social Security
- Repeals most of the cost of the stimulus
- Assumes NO cuts to veterans spending
While our fiscal outlook is in need of long-term fixes, there are a number of ways to immediately promote fiscal responsibility and cut spending. For example, I have supported across-the-board cuts. I have introduced amendments that would reduce funding for AMERICORPS, cut funding to the UN, eliminate the National Endowment for the Arts and cut funds to the Legal Services Corporation.
Enacting policies that create private sector jobs is my top priority. Unfortunately, the Democrat congressional majority and President Obama seem to be focused on higher taxes, more regulation, and increased spending.
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