GOP's jobs ideas: Keep Bush tax cuts, freeze regulations
Employers won't create jobs until they have a clear sense of what comes next in taxes and regulation, say Republicans. House GOP leader John Boehner proposes a moratorium on new government regulations for a year and keeping the Bush tax cuts.
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“I’m on the House Ways and Means Committee, and the tax code for 2010 is not yet completed,” says Rep. Peter Roskam (R) of Illinois, who attended the Friday session. “When people don’t know what the government rules are, they’re reluctant to create jobs or put capital at risk.”Skip to next paragraph
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On Tuesday, Republicans on the Senate Finance Committee called on Chairman Max Baucus (D) of Montana to begin marking up legislation on the expiring 2001 and 2003 tax cuts before Congress leaves for the August recess. That panel held its first hearing on the expiring tax cuts on Wednesday.
Trillions of dollars waiting to be invested
“Businesses are sitting on more than a trillion dollars of cash waiting to be invested,” wrote the 10 Republicans on the Senate Finance panel in a letter to the chairman released Thursday. “Until businesses and consumers can be confident that their taxes won’t rise next year, they will continue to refrain from investing, job growth will be stagnant, and as a result consumer spending will remain subdued,” they wrote.
House and Senate Democratic leaders have discussed letting the tax cuts expire for the highest earners, that is individuals earning more than $200,000 or families earning more than $250,000 a year. But Republicans and business groups often make the case that many small businesses would also count in that higher-income bracket and would face stiff losses if the law is allowed to expire.
“The biggest obstacle to economic recovery and job creation is the policy uncertainty created by Washington,” they wrote. “Small business owners don’t know what their effective tax rate will be in January. Business owners of all sizes don’t know what to expect from the next wave of government regulations. Investors and lenders, who are essential to getting credit moving again, don’t know what the new rules will be and cannot calculate their return on investment.”