The economy is sputtering while trillions of dollars are sitting in corporate America’s hands. I do not blame corporate America for sitting on this extraordinary amount of cash, there is no reason to hire anyone if consumer demand isn’t increasing. The American standard of living is too much for corporate America to handle. We get paid too much, according to them. That is why we have had over 53,000 factories leave this Country in the last decade to low wage countries like Indonesia and China.
Obviously the regressives believe our taxes are too high, but as I have pointed out in a previous article, the United States is ranked 32 out of 34 OECD countries in regards to taxation in percentage of GDP. Only 24% of our GDP is taxes. Only 2 other countries are lower than us, they are Chile and Mexico.
After many many months of waiting, the Senate GOP has finally come forward with a “plan” to get our economy back on track. Initially, the first issue they take up is government spending, unusual right? I bet the next thing will be tax cuts and deregulation, yep, right again. If you look at the link I provided above it is a very predictable storyline, almost like Grimm’s fairy tales. Unfortunately for America we have been doing this very thing for the last 30 years, how has it helped?
First here is a portion of the GOP bill in regards to spending,
Require a Balanced Budget Amendment to the Constitution
Require a Statutory Spending Limit
Cut Spending to Immediately and Substantially Reduce Deficits
I just pointed out to you in the first paragraph that consumer demand is down in this country and businesses are sitting on trillions of dollars, unfortunately they will not hire any if demand doesn’t increase.
If consumer demand is down, the government should step in and create demand, and essentially force companies to hire through government spending.
Second the GOP bill takes on taxes, amazingly, they have never brought this up, right?
Simplify and Reduce Business and Individual Tax Rates.
Make Research and Development Tax Credit Permanent
Extend and Make Permanent the Small Business Investment Tax Incentive.
Reduce Taxes on Capital Gains and Dividends
Finally here is the deregulation mantra,
Codify the President’s Proposal to Require Cost Benefit Analysis in the Formulation of
Support passage of S.299 REINS Act. which would require congressional approval by
joint resolution of any federal rule that may result in an effect on the economy of at least $100 million
Prohibit EPA from Regulating Greenhouse Gases under the Clean Air Act
In the GOP plan there is no mention of important key issues as infrastructure investment, Buy America, or tackling unbalanced trade with China. In fact China is not even mentioned ONCE in the plan.
Hearing the GOP talk about job creation is like watching reruns on late night T.V. Nothing new, nothing exciting, just the same old plot, cut taxes, reduce regulations and cut the budget and of course, stop Unions and increase FREE TRADE.
Unlike the Republican’s regressive plan, Democrats have a “Make it in America” Agenda. This agenda takes on the very foundational problem in our country. The Democrat’s plan creates a committee, like many other industrial countries have called National Manufacturing Strategy Act (Rep. Lipinski, H.R. 1366):Directs the president to work with industry, labor leaders, and other stakeholders to develop a national strategy to increase manufacturing.
It also takes on China’s currency manipulation, Currency Reform for Fair Trade Act (Reps. Levin and Tim Ryan, H.R. 639) which is imperative in regards to our exporting companies.
National Infrastructure Development Bank Act (Rep. DeLauro, H.R. 402): Establishes a wholly-owned government corporation to facilitate efficient investments in and financing of infrastructure projects—from leading-edge broadband networks and energy delivery systems to modern ports—that foster economic development and keep America competitive.
Yes the Democrats will also look into tax reform, Corporate Tax Reform: Our corporate tax system is far too confusing and inefficient. It causes economic distortions by forcing managers to make decisions based on tax consequences rather than on solid business principles. Many of these decisions, unfortunately, send investment and jobs overseas. Reform could lower the corporate tax rate and bring investment back to make American business and the American worker more competitive globally.
We have all been the victim of potholes because of our deteriorating infrastructure, and unlike the GOP bill, the Democrats invest in our country and it mention infrastructure which enhances and facilitates commerce and our economy.
Build a 21st Century Surface Transportation System: Enact a Surface Transportation Authorization bill to create a modern and efficient transportation system that facilitates trade and industry.
American Jobs Matter Act (Rep. Chris Murphy, H.R. 1354):Directs federal contracting officers, government-wide, to solicit optional information regarding the impact a contract award may have on U.S. job creation and authorizes the use of this information in award decisions.
All-American Flag Act (Rep. Braley, H.R. 1344):Ensures that when the government buys American flags, they are made in America.
Build American Jobs Act (Rep. Levin, H.R. 922)/Build America Bonds to Create Jobs Now Act (Rep. Connolly, H.R. 11): Extends the Build America Bonds program, provides additional funding for the Recovery Zone bonds program, and makes improvements to existing bond and credit programs to help states and local governments leverage private capital to create jobs today and build the infrastructure that is the backbone of future economic growth.
The contrast is clear, the GOP is standing firm on failed past policies of only cutting,cutting and reducing while the Democrats are investing in the Country and creating a solid economic outlook. The choice in pretty clear.