Issues

Taxes

What is the Problem?

America’s federal tax system is a well-intended system put in place to pay for essential government services. The problem is that it has grown into a massive and complex behemoth.

Not only do these tax costs burden America’s businesses and families with their sheer cost, but today’s tax regime also attempts to direct our behavior.

Entrepreneurs are the primary source of job creation in our country. But higher top tax rates make it difficult to do so.

With government spending only deepening our financial crisis, working families may face remarkable tax hikes to simply maintain our nation’s debt. This will damage the economy even more.

What Must Be Done?

We need money to run government, not to create further burdens to businesses trying to create jobs. So tax reforms should simplify the code, increase transparency, and ramp up economic growth.

Raising corporate tax rates means raising the price of things we buy. Washington must move to reduce the corporate tax rate and adjust other tax rates to help make America’s economy more competitive. State legislatures need to control spending because state and local taxes also impact job creation.

To create a tax system that encourages job creation, Job Creators Network supports:

  • Cutting the Corporate Tax Rate to 25 percent
  • Simplifying the tax code to cut compliance costs
  • Expanding IRS forbearance and support programs for small business
  • Extending accelerated “bonus” depreciation of equipment purchases

Regulations

What is the Problem?

Today, regulations are strangling American business. From the dry cleaner on Main Street to the large scale manufacturer, job creators are crying out for relief.

American regulations cost $1.75 trillion annually – more than the entire economic output of Canada. Regulatory burdens in the new health care law, in Dodd-Frank, and virtually autonomous and unaccountable government agencies like the Environmental Protection Agency kill jobs.

Washington must take fundamental regulatory reform seriously by employing our best minds to root out wasteful and onerous regulations throughout government. This will help create jobs.

What Must Be Done

An ideal government regulatory climate would have oversight, accountability and quality control.

While some noble efforts to curb regulation have been made throughout the years, such as the Paperwork Reduction Act of 1980 and 1981’s Task Force on Regulatory Relief, they simply didn’t go far enough to curb wave after wave of government regulation.

We encourage working with our policymakers to root out wasteful and onerous regulations throughout government, without compromising the health and safety of the American workforce or people. This will help create jobs.

Job Creators Network believes serious regulatory reform in Washington should include the following:

  • Use existing mechanisms to repeal unnecessary or redundant regulations, and simplify ones we want to keep.
  • Support regulatory reform efforts already in the works like the Regulatory Improvement Act of 2013 and encourage others like it.
  • Enact “sunset” legislation, meaning after a period of time, regulations face review and possible elimination if deemed no longer necessary or cost-effective.

Debt & Deficit

What is the Problem?

Today the United States owes almost $17 trillion and the debt is rising $3.8 billion each day. The current administration is projected to spend enough to add another $13 trillion to the debt in a decade. This is unsustainable and guarantees higher taxes and interest rates in the future.

Increasing government debt thwarts job creation by driving up interest rates on business borrowing, making expansion plans more expensive. World Bank studies have also shown high-debt countries running deficits are more likely to suffer lower economic growth. The combination impedes job creation.

The United States will not experience true and sustainable economic growth as long as our government spends far beyond our means.

What Must Be Done

Policymakers must make the courageous decisions necessary to cut spending and reform and preserve Medicare, Medicaid and Social Security. To help create jobs, Job Creators Network believes Washington must:

  • Commit to limit the national debt to 60 percent of gross domestic product (GDP)
  • Make meaningful reductions in entitlement programs
  • Enact enforceable pay-as-you-go budget rules

Debt and Deficit Facts

  • Federal debt is now about 73 percent of the economy’s annual output, or GDP, higher than at virtually any point in US history and twice what it was at the end of 2007.
  • In 1980, the U.S. national debt was less than $1 trillion. Today, it is almost $17 trillion.
  • During President Barack Obama’s first term, the federal government accumulated more debt than our nation did under the first 42 U.S presidents combined.
  • The federal government takes more than 100 million dollars from our children and grandchildren every hour of every day.
  • Every man, woman and child in America bears more than $50,000 in federal debt. That’s enough to buy every American a brand new Mercedes Benz – even those too young to drive.

Health Care

What is the Problem?

A system that retains and improves upon the President’s goal of universal coverage but also restrains costs is what American workers and employers really need.

But the problem with the Affordable Care Act is not what it tried to do, but what it failed to do: stop runaway healthcare costs.

The effort to provide insurance for 30 million more Americans did not fix the runaway cost problem that made health coverage too expensive for too many in the first place. This primary threat to American health coverage has existed for decades and remains unsolved by the ACA.

This cost problem is why reform was needed. If not addressed, the ACA will fail.

What Must Be Done

Job Creators Network believes changes to the health care system should include the following elements:

  • Fix the cost problem by putting patients – rather than insurance company or government insurance bureaucracies – in charge of the dollars being spent for their care
  • Improve upon the President’s goal of universal coverage by giving a basic minimum contribution of health care expense dollars to every adult American and family, regardless of income and job status.
  • Reform medical malpractice to a system similar to workers compensation where all injured patients can find access to relief not just patients who attract powerful attorneys. This reform would virtually eliminate the practice of defensive medicine which increases health care costs exponentially.
  • Ensure portability of insurance and by letting the individual or family choose and own their coverage with the dollars given to them and under their control.
  • Protect against rejection for pre-existing conditions when an individual or family switches to different coverage.

Energy

What is the Problem?

American technical innovation has unlocked a huge oil and natural gas opportunity that will allow us to soon become the largest energy producer on Earth and basically independent of the rest of the world for our energy needs.

This energy abundance can fuel an economic and manufacturing Renaissance, putting millions of Americans to work, keeping the price at the pump under control. The challenges:

  • State-level efforts to prohibit the technology used for oil and gas drilling.
  • Federal government efforts to restrict coal use, drilling offshore and on federal land.
  • Federal government refusal to approve pipelines (Keystone XL) and other energy transportation needs.

What Must Be Done

Job Creators Network supports an “all of the above” energy strategy that pursues every option and encourages – not subsidizes – alternative energy sources.

The choice of energy resources must come from free market demand and not from the preferences of policymakers, lobbyists or special interest groups picking winners and losers.

  • Abundant and cheap energy means a million high paying manufacturing jobs and millions of other jobs.
  • Energy Independence: If government just stays out of the way, the USA will soon become a net exporter of oil and natural gas – and the world’s largest producer of both.
  • Environment: Americans are already using less and creating less carbon – precisely because of our new energy opportunities. Picking winners and losers with costly mandates and taxpayer subsidies on experimental green energy programs is not a solution to our environmental or economic challenges.

Education

What is the Problem?

An American mind not reaching its potential leads to less prosperity for that individual and less for all of us.

There is no more important competitive advantage for the United States than a highly educated workforce where everyone involved is personally empowered to innovate and solve problems.

What Must Be Done

Job Creators Network believes education reform means the value of every school – and every public education dollar – must be judged primarily upon what it teaches students who are least likely to find their place in the workforce and seize the American Dream:

  • School boards need to behave like trustees of education and not politicians.
  • Closing the achievement gap between most and least successful students means rethinking how we allocate resources. This means getting the most “bang” for the buck and not using a child’s ZIP code to determine a student’s academic opportunity.
  • One size never fits all. Communities must be empowered and encouraged to create a diverse portfolio of education options, including conventional public school districts, charter schools, independent schools, special needs instruction, tax-deductible business scholarships, and access to college credits.
  • Skilled trades must be a priority, not an afterthought. The nation faces a huge gap in the number of new skilled tradespeople. Jobs for electricians, plumbers, welders, and others are often well-paying and pave the way for entrepreneurial-minded students to become job creators and business owners.
  • Students and teachers should be held accountable for what they know and what they have learned. Mastery of subject, rather than seat time, should be the standard for promoting students in a subject. Talent and results, rather than time served, should be the standard for teacher promotions and compensation.
  • Every school must have minimum instruction standards. A definition of learning standards and assessments should be created and required so as to ensure accurate accountability for student and teacher results.