On the surface at least, the recent unemployment numbers seem like good news. From 9%, where it’s been stuck for quite some time, to 8.6%. However, the bad news below the surface is that whereas the U.S. economy added 120,000 jobs last month, 300,000 people stopped looking for work altogether, and therefore aren’t even considered in the unemployment number.
Clearly, the economy is still much weaker than we’d like to see it. Far too many Americans who want to work can’t find a job. What can we do about it?
Well, let me tell you about a bill I’ve just co-sponsored called the Jobs Through Growth Act. It’s a reasonable, comprehensive piece of legislation, the goal of which is to reinvigorate the economy and create jobs through growth in the private sector, not just wasteful stimulus spending and government jobs. The bill combines tax reform, reduced regulations, and an expansion of domestic energy production.
First, taxes. Taxpayers would have the CHOICE of staying with the current tax code, or switching to a simpler, flatter tax – 15% on personal income up to $50,000 a year, and 25% above $50,000. There would be a $12,500 deduction per person allowed (up from $3,700 allowed under current tax law.)
In addition, the burdensome and confusing Alternative Minimum Tax (AMT) would be eliminated. The marriage penalty (by which married couple’s taxes are currently higher) would also be eliminated and the death tax, (by which the federal government can now take up to 55% of a person’s property when they die) is finally laid to rest as well.
America’s corporate tax rate is one of the highest in the industrialized world, making us less competitive and costing American jobs. The corporate tax rates would be reduced from 35% to 25%.
Second, regulations. The legislation would call a timeout on all new regulations that create significant costs for job creators until unemployment falls to a more manageable level. This is particularly important when one considers that the Obama Administration proposed 144 such new burdensome regulations in the first six months of this year alone.
Next, some regulations currently don’t apply to small businesses of 50 or fewer employees. The bill would raise the number of employees to 200, thus giving relief to more small businesses to grow, and hopefully create more jobs.
And third, energy. America remains too dependent on foreign sources of energy. This keeps energy prices high (including gas prices at the pump), hurts businesses and consumers, hurts the economy overall and job creation in particular.
The bill would allow environmentally safe exploration and development of oil and natural gas in the Gulf of Mexico, the Outer Continental Shelf, and in ANWR (in Alaska).
In addition, the Keystone Energy Pipeline was recently put on hold for a whole year by the Obama Administration. This pipeline, which would bring critical energy resources from Canada to the United States, would be given the green light to move forward – NOW.
In conclusion, passage of this common-sense Jobs Through Growth Act would be a huge step towards getting the economy moving again, and putting Americans back to work.