Aaron Schock

Jobs and the Economy

Congressman Schock on FOX News Discussing  the House Passed JOBS Act (Video)

The current response in Washington has been disheartening…more regulations, higher taxes, an unwillingness to cut spending and a mentality that seems to punish American businesses large and small. Instead of providing the incentives and benefits for small business, which create 7 out of 10 new jobs, we are instead increasing taxes on the very entities that will help lead this country out of our current turmoil. Since taking office, President Barack Obama has signed into law twenty-one new or higher taxes. In order to achieve long-term sustained growth you need to have an economy that incentivizes risk-taking, savings and entrepreneurship, not one which punishes it.

Through their voice as the electorate, the American people have shown a rejection for the notion of bigger government, more spending, and picking winners and losers by deeming some ‘too big to fail’. I refuse to accept the idea that the role of government is to simply spend taxpayers’ dollars in the name of creating jobs. It’s not the government’s role to be the job creator in this country, rather I believe government can set the rules of the game and enact policies to create an environment which will promote private sector job growth. Through decreased spending and tax reform, we can create an atmosphere where businesses of all sizes want to grow and invest here in the U.S.

Aaron was awarded the U.S. Chamber's Spirit of Enterprise. To read more about this honor, click here.

It is no secret that our country’s massive debt is hurting the economic environment. Fearful of new proposals to increase their taxes to combat the debt, businesses are sitting on capital rather than reinvesting in their own businesses. The President’s economic advisors have indicated that adding 1% to our GDP can create upwards of 1 million jobs, and it’s precisely this 1% drag on our GDP that experts believe the size of our debt is causing. Currently our debt is over 100% of yearly GDP, an unsustainable level not too far off from some of our European friends who have been plagued by recent turmoil and economic collapse.

Our solution can’t simply be to increase the corporate and marginal tax rates for individuals. I’ve seen that attempted in Illinois, it’s a recipe for business and then individuals to relocate elsewhere, shrinks the taxable base and results in a prescription for ever increasing taxes.

First and foremost we must get our spending under control, to that effect I have introduced H.R. 606, the Federal Program Sunset Commission. This bipartisan proposal would create a commission to evaluate and abolish federal programs which are duplicative, non performing, or wasteful. Additionally, I voted against numerous increases to our debt ceiling and instead supported budgets which cut spending by over $6 trillion over the next 10 years and eliminated over $2 trillion in tax increases called for in Obamacare and the President’s proposed budget. I also supported the Cut, Cap and Balance Act and the Budget Control Act to cut government spending by $2.4 trillion over the next 10 years and required a vote in Congress on a balanced budget amendment to the constitution, something which I vehemently support.

Since taking control of the House of Representatives, the new Republican majority has made cutting government waste and getting our fiscal house in order a priority. We realize the suffocating effect our massive debt is having on private sector investment in this country, but we need a willing partner in the Senate and the President. Unfortunately, the U.S. Senate has failed to produce a budget in over 1,000 days. As a matter of fact the House has sent dozens of pieces of legislation aimed at creating an economic environment conducive to job creation over to the Senate only to see those pieces of legislation languish with Senate inaction.

Note: Click on the image to watch

I have also authored legislation, H.R. 3877, the 1099K Overreach Protection Act, along with fellow Illinois Representative Bobby Shilling as well as Senators Thune and Cantwell, which prevents the Administration’s latest tax regulation burden on small businesses from going into affect. The new 1099K reporting requirement requires the IRS to collect a new document known as a 1099K from third party payment entities, such as credit card companies. This document shows all credit transactions conducted at a business in a given year and was meant only to be collected from credit card companies. Unfortunately, the IRS is requiring businesses to reconcile the 1099K report with their own internal business numbers to calculate gross receipts. Simply put, many small businesses lack the specialized accounting software, time, or personnel to undertake such a reconciliation effort successfully. Additionally, this new requirement increases the accounting workload and costs for small businesses. My legislation will ensure that small business owners are not saddled with this additional burdensome tax requirement.

Named 2012 Guardian of Small Business by the National Federation of Independent Business

I am also a vehement supporter of allowing American businesses to reach the 95% of the world’s population which lives outside the borders of the U.S. at low cost. Free trade agreements are the best facilitator of unrestricted trade that supports higher wage jobs in the USA. Implementation of free trade agreements will help boost exports of products our workers manufacture and secure the manufacturing jobs we have.

The synergy of economic interests in the 18th District is profound. Both the union higher wage manufacturing jobs and agriculture (which is the largest industry in the 18th District) export over half of their products and commodities, with some categories being 70% exported.

I worked hard with my colleagues on the Ways and Means Committee subcommittee on Trade this year to pass job creating Free Trade Agreements with Colombia, Panama and South Korea. Passing these free trade agreements, which did not require a tax increase, add to our national deficit, or hurt our small businesses, enables businesses to create well paying American jobs in sectors of our economy such as manufacturing and agriculture. President Obama himself has stated that increasing U.S. exports by just one percent would create over 250,000 American jobs. According to the International Trade Commission, passage of the Colombia, Panama, and South Korea free trade agreements increases our exports by more than one percent.

As a member of the Ways and Means Subcommittee on Trade, I participated in several hearings on the three trade agreements over the course of the year. I was able to question U.S. Trade Ambassador Ron Kirk about removing any remaining obstacles to submitting these agreements to Congress.

With our unemployment rate at a 26-year high, lowering trade barriers will help U.S. and Illinois businesses create new jobs at a time when Americans need them the most – without spending more taxpayer money.

I have also been a strong proponent of advancing a highway bill in Congress to put people back to work now and in the future. The deficiencies in our infrastructure network increase transportation costs, which in turn drive up the cost of every product we buy and make American products less attractive on the world market. Global employers considering a presence in the United States will require a modern transportation infrastructure that enables them to move their finished products to the global market place in a timely and cost-efficient manner. Our aging and congested system is a strong disincentive for firms to expand their presence in the United States and create jobs here at home. A long-term transportation authorization will help make America more competitive in the global marketplace and create jobs in all sectors of our economy.

A long term highway bill will put people to work now, give states the longevity they need to plan and also help make the U.S. a manufacturing leader once again as businesses desiring to expand, locate and invest will do so here in the U.S. as we will have increased the ease in which they can transport their goods to the marketplace.

Web Video: Aaron Schock on need for Comprehensive Tax Reform

Lastly, we must look to reform our job destroying tax code. Simply put, the tax code is too costly, too complex and is costing jobs. This is one of the reasons I fought to get on the House Ways and Means Committee, because I believe reforming our tax code will be key to job creation in this country. The U.S. corporate tax rate is one of the highest in the world, as well as one of the only countries who institutes a worldwide tax system which means U.S. business who earn income abroad, can’t bring those profits back home to invest without again being taxed on them for a second time. On the individual side, our rates are simply too high. I believe the individual citizen is a better steward of his own money than the government is and we would be more profitable as a country in the long run if citizens were left with more of their money to invest on their own than turning over their money to Uncle Sam. Additionally, the majority of small business in this country are not organized as corporations, but rather as entities who pay taxes at the individual rate, meaning each time we increase taxes on individuals, we are actually increasing taxes on the very small business who create 7 out of every 10 jobs in this country and will help turn around our economy.

I will continue to work with my colleagues on both sides of the aisle to advocate for sound fiscal policies that will truly help stimulate growth, promote American businesses and protect American taxpayers from wasteful government spending.