In the News
Now, For Some Real Job Creation
Fiscal Policy: President Obama's much-anticipated jobs package reportedly costs hundreds of billions more in make-work temp jobs and food-stamp stimulus. He still doesn't get it.
Those remedies didn't work last time — the unemployment rate is now higher, to say nothing of the debt — and they won't work this time.
Americans have grown weary of Obama's warmed-over Keynesian ideas. Polls show that seven in 10 think he's steering the economy the wrong way; while four in 10 agree that he has "no idea" how to create jobs.
Instead of consulting with James Hoffa and other union bosses, he should listen to CEOs — the folks who actually make payroll. Here are several measures they say will incentivize them to hire permanent employees for jobs that will pay for themselves:
1. Call off the National Labor Relations Board blocking Boeing from opening a new assembly plant in right-to-work South Carolina. Opening the plant would employ thousands.
2. Give multinationals a tax break on the trillion in foreign profits they've amassed outside the country, so they can reinvest them in jobs in the U.S. Duke Energy reckons a repatriation holiday would spur it to inject the $1.3 billion in profits it hoards overseas into domestic operations, creating some 15,000 new U.S. jobs.
3. Cut the corporate tax rate so it's in line with foreign competitors'. At 35%, America has the second-highest corporate rate in the world. Even Canada, not known as a tax-friendly place, has slashed corporate taxes to half the U.S. rate and attracted job creators — many, unfortunately, from this side of the border.
4. Make existing personal-income-tax rates permanent instead of threatening to return them to the higher Clinton levels, as Obama recently did. A stable low-tax environment would allow small-business owners filing individual returns to plan and hire five years out.
5. Eliminate the capital gains tax and remove income caps, which would promote capitalization of companies so they can hire and expand. This would also help close the budget gap. Even Obama has admitted previous cap-gains tax cuts have generated more government receipts. The move would also promote more homebuying and construction jobs.
6. Declare a moratorium on new regulations, specifically suspending implementation of the administration's twin job-killing superregulations.
Small businesses are capping payrolls to avoid being subject to ObamaCare mandates. Meanwhile, the Dodd-Frank Act threatens to drive an estimated 1,000 smaller banks out of business. The regulations have created untold uncertainty in boardrooms, and put expansion and hiring plans on hold indefinitely.