Senate Republicans have unveiled a seven-part jobs plan to create jobs and spur economic growth. Freshman Sen. Rob Portman (R., Ohio), a former budget director under George W. Bush, authored the plan and presented it Tuesday to the GOP caucus during their weekly lunch meeting. “This is a pro-growth, pro-jobs plan that will create the environment necessary to get Americans back to work and ensure that American businesses are competitive globally,” Portman said.
The plan contains a number of policy items that Republicans have already incorporated into their broader legislative and political agenda, such as spending cuts, a balanced budget amendment, reducing corporate income taxes to 25 percent (from 35 percent), prohibiting the Environmental Protection Agency from imposing unilateral regulations on greenhouse gases and finalizing trade agreements with Korea, Colombia and Panama before the July recess. It would also make permanent a number of tax credits and incentives for small businesses, reduce taxes on capital gains and dividend and order a review of federal regulations and their effect on the economy.
On health care, the plan calls for medical malpractice reform, allowing individuals to purchase insurance across state lines, the promotion of health savings accounts and the creation of additional risk pools for small businesses. In regard to energy policy, the plan recommends lifting federal prohibitions on drilling and exploration and expanding federal loan guarantees for nuclear power in order to diminish our reliance on foreign fuel sources.
More here.
Dare we hope that the adults will be in charge with pushing through as many of these agenda items as possible? What possible objections could the Dems have to what appear to be pro-active proposals?
Reply to this commentLinkReport AbuseIf these were serious (as opposed to corrupt) individuals, they'd have a section in there on enforcing immigration laws. That's the quickest way to free up 15 million jobs -- and remove 15 million Americans' worth of "unemployment insurance," food stamps and housing vouchers from the spending ledger.
It would also be key to creating the competitive economy they claim to be pushing toward: agro, landscaping, construction and food/hospitality service businesses are much less productive (and thus competitive) than they would be without illegal labor.
Those sectors overhire an inordinate of underskilled people to do the task that many fewer skilled American workers (or just workers who can communicate with their bosses, customers, etc.) would do. Other tasks (especially in agro) could be mechanized -- creating demand for engineering and high-skilled manufacturing jobs to create the machines used in Japan and Europe for agricultural production.
... And you really aren't going to have a competitive workforce on a broader level when you're importing tens of millions of the world's least-educated, least-skilled individuals into the country. It brings the competitiveness of the average US worker down and makes our overall labor force (and fiscal situation) that much less attractive.
Reply to this commentLinkReport AbuseWhere's the part about creating jobs for Americans, by tossing out the illegal aliens?
Reply to this commentLinkReport Abusei'll listen when they want to eliminate epa. we already have 50 additional epas.
Reply to this commentLinkReport AbuseGreat, former Budget director under George W Bush. What could go wrong?
So we have Coburn and the Gang of 6, Ryan agreeing to eliminate tax subsidies, etc. Have any of these geniuses ever heard of "focus" and "getting on the same page"?
No wonder Trump scares these guys. At least someone out there stays on message.
Reply to this commentLinkReport AbuseWhat a coincidence, their proposal is Everything They Have Proposed In The Last 20 Years.
Although no one has explained how lowering spending will create jobs. They did it in the UK and they're about to go back into recession.
Reply to this commentLinkReport AbuseTimbuktu-
There's very little in the way of data to support the idea that illegal immigrants "take American jobs." Sorry. Nor is there data to support the idea that illegal immigrants decrease overall competitiveness. On the contrary, by allowing resources to be more efficiently allocated they act as a major factor in *increasing* overall competitiveness (a term that tends to oversimplify certain aspects of international trade).
Most of the comparisons you see that try to support such claims do so without accounting for a number of confounding variables that kind of undermine the simplistic claims you're jumping on.
More than that, I hate to break it to you but mechanization is already an option. By and large, it's more expensive to further mechanize than the use of cheap labor as evident by the status quo. You can't have it both ways with these options; either you see these "American jobs" being filled or increased mechanization. Your post seems to imply that you can get both; that's not the case.
Either way, you see a definite increase in costs that end up being born directly by American consumers. Things are nowhere near as simple as your post tries to imply.
There are a number of significant and major concerns with illegal immigration in this country today. And they need to be looked at, evaluated, and either solved back for or hedged against. Ignoring them is *not* a strategy that makes sense or should garner much in the way of support from anyone with half a brain. Hell, the security implications alone are enough to scare someone (and rightfully so).
But doubling down on unwarranted claims isn't the right approach.
Reply to this commentLinkReport AbuseCorporations have record profits and pay the lowest share of total income and corporate taxes in about 50 years. So the solution OF COURSE is to cut their taxes further! Cut dividend taxes too, cause millionaires can't be paying taxes. With their tax savings, maybe they'll build themselves a yacht! And the peon americans can maybe get a job cleaning their toilets! Oh, whoops, an illegal will do that cheaper, sorry.
I dare republicans to run on tax cuts for the rich like they've done for the past decade. The country borrows almost half of its government spending so the solution (of course!) is to cut taxes for the rich.
Reply to this commentLinkReport AbuseBluestrike, let's get real here. The jobs illegal aliens are concentrated in (and you can look at the Pew Center data; they're overwhelmingly concentrated in these industries) are food service, hospitality (read: cleaning hotels), janitorial services, construction, agriculture, and landscaping.
Those are not the jobs that can be done elsewhere. Whereas our country's policy of not being open to skilled and educated immigrants -- computer scientists, engineers, chemists and others who are affected by our de jure policy of family unification over skills and our de facto policy of low-skilled illegal immigration -- does mean jobs go elsewhere, if we were to finally restore the rule of law vis-a-vis low-skilled illegals, those jobs would be done in America.
Now, who would do them? Americans? Legal immigrants? Well, there's not too many other options, so I would say those are our options. It sure does sound like -- as much as the open-borders crowd tries to use sophistry to get around this -- illegal aliens are taking jobs from Americans and legal immigrants. I'd rather that they have those jobs than illegals.
As for mechanization, of course if you mechanize a process, a human won't be doing the same thing. But mechanization does create a need for higher-skill jobs overseeing the machinery on site, as well as actually designing and manufacturing it. All of those positions would require more skills, and create more economic output, than having an underskilled individual doing something by hand. That's sort of how the economy has boomed and jobs have exploded since the computer entered our national worklife in the '80s and '90s.
So, yes, many jobs would be done by legal employees. Others would be mechanized, creating a need for higher-skilled workers to oversee and build the machinery. Sounds good to me.
As for the notion of costs increasing, I think it's highly overblown. Why is it that in many cities (Chicago, New York) and regions (Florida, California), many of the most expensive restaurants use almost exclusively illegal labor while the fast-food joints (Checkers, TGI Friday's, many McDonalds, etc.) that have large labor forces and fear an immigration probe use legal labor and yet still sell the cheapest food you can get?
Why is it that many of the expensive organic farms are relying on illegal labor, while larger, more mechanized farms with less reliance on illegal labor are selling the cheaper produce?
Clearly, you've oversimplified things. The high-end restaurants and organic farms overhire because the cost of any one worker is so low. I have worked in restaurants that hire high-schoolers in the summer, as well as restaurants that hire illegal aliens. The former tend to run a lean operation; the latter are hugely overstaffed. And, in my experience, the latter have been the higher-end establishments charging more for their product.
The Romans learned the hard way that relying on slave labor instead of engineering mechanized solutions kills productivity and increases prices, in addition to destroying work ethic and morale. Let's just hope that we come to that realization before our own Republic is utterly corroded as well.
Reply to this commentLinkReport AbuseP.S. Bluestrike, I forgot the most potent point: It's against the law, the rule of which is the cornerstone of our society. What part of that is so hard to understand?
Reply to this commentLinkReport Abuse>"There's very little in the way of data to support the idea that illegal immigrants "take American jobs.""
Some of the work illegals do is work which would not be done at all if the illegals were not here. Some of it is work which would still be done, but would be done elsewhere. (Lettuce could and should be grown in Mexico rather than here) And some of it is work which would be done by Americans if it were not being done by illegals. For instance, there was a cop busted recently for being an illegal alien in Alaska. So let's drop this fiction that illegals take ZERO American jobs.
>"Nor is there data to support the idea that illegal immigrants decrease overall competitiveness. On the contrary, by allowing resources to be more efficiently allocated they act as a major factor in *increasing* overall competitiveness (a term that tends to oversimplify certain aspects of international trade)."
You are assuming the existence of a libertarian market. It does not exist, which is why the theory that the presence of illegal aliens works to increase competitiveness falls apart. In the market we actually have, illegal alien labor acts to transfer tax money from taxpayers in general into the pockets of the employers of illegals.
>"Most of the comparisons you see that try to support such claims do so without accounting for a number of confounding variables that kind of undermine the simplistic claims you're jumping on."
The only simplistic claims I see being made here are being made by you.
>"it's more expensive to further mechanize than the use of cheap labor as evident by the status quo."
That's because cheap (illegal) labor is currently being subsidized by the taxpayer. That particular status quo is easily altered.
Reply to this commentLinkReport AbuseBrilliant, releasing the report on a day when the nation and the MM are totally absorbed by the Bin Laden story. Are most Republican congressmen lunkheads, or just some of them? They should have waited a week.
Reply to this commentLinkReport AbuseObama Goes Golfing, Dog Bites Man, Bill Cheats On Hillary, and Republicans Propose Tax Cuts for the Rich. Nice. And predictable. And of course it works so well, because Bush slashed taxes on the rich in 2001 and we ended the decade with the best economy ever!
Actually, with growth lower than the higher tax 80s and 90s and with fewer jobs than at the start.
When is the GOP going to follow through on its promises to the middle class? When is it going to make real spending reductions, rather than just promises of such? When is it going to secure the borders? When is it going to end the vast, Byzantine structure of quotas, handouts and racial set-asides? When is it going to enact school vouchers?
Presumably never. The GOP can only be reliably counted on to go to the wall for the rich. That's why it'll cut medicare for the middle class but not $3 billion in aid to Israel. That's why it'll push for amnesty for 15 million illegal aliens who will not, when they become citizens, vote Republican.
I turned 18 and voted in my first election in 1994. It was a great year to be a Republican. I voted GOP religiously my first 5 federal elections, through 2002. In 2004 I held my nose, but still voted for Bush. In 2006 I became a genuine swing voter. In 2008 I adamantly refused to vote for McCain. I'm done with this GOP. Cheap labor, low taxes on the rich, big wars - they can only be counted on to push the policies of big business and the neocons. No more buying on credit. Cash on delivery. That means conservative policies now, before the next election.
Reply to this commentLinkReport AbuseI don't want to shoot the messenger, but that first paragraph, re: 'create jobs' is real turn off. The GOvernment does not create jobs. Even the Government employees jobs are created by the tax payers who are the real source of funding for them, even if the tab is not paid for years.
I did like the spirit of what is in the rest of the post, including the plan itself. But the Republicans are on a path to failure with this plan because it is exactly what the other negative posts say it is: politicians paying off their supporters. The difference in Republicans and Democrats seems to be how they waste their money.
The Republicans have a slightly better sense of liberty than the Democrats, but neither realise that debt is a form of slavery, so liberty still loses. They have got to link spending to revenues and do the only thing Government can do in this situation: control spending. IUntil that happens there will never be enough money. The Republicans may find the support runs out before the money does.
Reply to this commentLinkReport AbuseWJ: In the 80's, Reagan cut the top tax rate to 25%.
Reply to this commentLinkReport AbuseAbout half of these proposals from "small government" Republicans include at least one of the following:
- Federal subsidies for preferred industries
- Maintaining a more complex tax code (through credits, etc.)
- Infringing on state rights
Republicans love big government when it is their proposals for big government.
Reply to this commentLinkReport Abuse** "WJ: In the 80's, Reagan cut the top tax rate to 25%." **
Income, business, or cap gains? Because the highest cap gains rate - the one that supposedly encourages job creation - was reduced in the 00s to 15% by Bush and Republicans. That rate was all over the place during the 80s and 90s, but it was never lower than 20%, and it was at some points nearly twice as high. Yet we had higher job creation and faster economic growth.
Reply to this commentLinkReport AbuseBy the way, as of now we are spending about $100 billion/year on unemployment checks. About 7-8 million jobs are being filled by illegal immigrants, who are overwhelmingly low skilled workers. Coincidentally, that just happens to be where we have the highest unemployment of American workers - low skilled workers, who are disproportionately young, uneducated, and racial minorities.
Get rid of the illegal immigrants and the unemployment rate will improve and government expenditures will fall.
Reply to this commentLinkReport AbuseWJ and Kenny, Cutting corporate taxes to 25% is actually a good idea, IF the plan eliminates the exemptions that allow GE and others to pay no corporate taxes. We should prefer a system where businesses pay all of 25% rather than none of 39%. That would actually mean a net tax increase for large corporations.
Reply to this commentLinkReport AbuseThis would lower taxes for many small businesses which pay the full 39% because they aren't eligible for the exemptions. The reduction would free up their capital for hiring and investment.
Since many of the corporate tax exemptions pertain to overseas activities, this should also encourage GE and others to bring production and jobs back to the US. However, the rate must go down to a level similar to other nations, the 39% rate is much higher than that of other nations.
Our problem continues to be a tax system that creates perverse incentives and disincentives to doing business. Businesses rationally seek the most advantageous climate, we need a tax code that creates that climate.
As for the remainder of small businesses that operate as Subchapter S or sole proprietorships under a personal 1040 we need to consider their strength and hiring ability. It is always such businesses that lead the economy out of a recession, hindering them through a tax code manipulated by lobbyists for the Fortune 500 is insane.
And now for something completely different. I hope they will think hard about those small business tax credits. It always sounds nice ("yay us, look we love small business") but, most of those credits are short term, complicated, and undersized. A long term cut in overall rates is far more meaningful as a tool for hiring and investment. Let's face it, a hiring tax credit (for example) does little to reduce the cost of hiring a new employee. A new hire involves UI insurance, SS tax, health care, state and local taxes, etc. - a $5k above the line credit is a joke.
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