Money & The Economy
House Republican Plan for America's Job Creators [Full Text and Summary]
Summary from JOBS.GOP.GOV
Empowering Families, Small Businesses and Entrepreneurs
Empower Small Business Owners and Reduce Regulatory Burdens:
- Require congressional review and approval of any government regulations that have a significant impact on the economy or burden small businesses.
- Audit existing and pending regulations to identify and address those that hinder economic growth.
Fix the Tax Code to Help Job Creators:
- Increase American competitiveness to spur investment and create more American jobs by streamlining the tax code and lowering the tax rate for businesses and individuals including small business owners to no more than 25%.
- Reform the tax code to allow American businesses to bring back their overseas profits without having to pay a tax penalty so they can invest in our economy and create American jobs.
Increase Competitiveness for American Manufacturers:
- Pass the three pending free trade agreements with Colombia, Panama, and South Korea to create up to 250,000 jobs.
- Continue to open new markets to American made products. Encourage Entrepreneurship and Growth:
- Modernize our patent system to protect our nation’s innovators, discourage frivolous lawsuits, and expedite patent reviews.
- Re-Authorize and improve federal programs and approval processes to streamline development of new products.
- Remove barriers to building a first class workforce so that the United States can compete in the global marketplace and lead the way in technological development and growth.
Maximize Domestic Energy Production to Ensure an Energy Policy for the 21st Century:
- Promote lower energy prices through increased domestic production.
- Encourage all forms of energy production.
- Pay Down America’s Unsustainable Debt Burden and Start Living Within our Means:
- Build upon the House Republicans’ Budget by enacting significant spending cuts.
Full Text from Jobs.GOP.gov
House Republican Plan for America’s Job Creators
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A sensible and workable plan, but the Obama admin will simply ignore it, saying that the GOP has nothing to offer. So, who REALLY is the party of obstruction here?
PC Bob, your comment was responded to directly in the comment above. Consider that the reason the Obama admin may ignore the Republican plan is in fact that it actually has nothing to offer for jobs creation but certainly does represent yet another tax loophole for corporations to avoid paying their “fair share”. The fact that US corporate lobbyists have been able to get legislation passed that allows for $1.4 trillion in corporate profits to be earned and then put to work offshore, legally, without any tax implications (encouraging job growth ~ for offshore non-US citizens) is, on face, a demonstration of our democracy having been bought and paid for by corporate interests to begin with in the first place. Now Republicans want to add insult to injury: corporations being able to bring home those profits and the profits earned on those profits – untaxed. Guys, nice work on behalf of the corporations and their 1%. Hey. I got a new idea. What about putting some of all that savvy toward the objective of creating jobs instead?
R. Mitchell, (and any other who might have a response),
Is there anything in the Republican plan at all that is not specifically a “direct benefit to corporations”, who in turn might (allegedly) create a job? What of any of it ensures any job creation? and if any does how so? I want to qualify my question.
Qualifying my question: No need to repeat the theoretical, I’m looking for anything in the plan that is concrete, e.g. some benefit is earned by a corporation for actual job creation. Perhaps after the job is created/filled (benefit paid out to the corporation incrementally or as a “pay as we go” or something?) vs. all benefit conveyed upfront to corporations for hypothetical jobs for which they have no obligation to create later? Anything more than “Hopefully they will.”?
For example, the item in the plan: “Reform the tax code to allow American businesses to bring back their overseas profits without having to pay a tax penalty so they can invest in our economy and create American jobs.”
As I understand it corporations are presently sitting on $1.4 trillion in profits parked in offshore investments. All of those profits are completely untaxed. They are earning profit on that profit as it is all invested one way or another. Their lobbyists want a year long window in which to bring it all home at a significant discount of only a 5% tax rate instead of the regular capital corporate tax rate 35%. The official marginal tax rate for corporations is 35%.
However, in 2010, US corporations paid, on average, 23% of their profits in taxes, after deductions, credits and loopholes. It is calculated that if all corporations actually paid 35% of their profits in taxes last year, the government would have brought in an additional $219 billion in 2010 alone, for example.
Interestingly, the “tax penalty” referred to in the Republican plan is merely the current “fair share” regular 35% tax rate…. being characterized by the Republican plan as a “penalty.” Further, does anybody know… is the 5% tax rate for corporations subject to normal deductions, credits and loopholes? If so, it seems they are asking not for relief from a “tax penalty” but instead for a tax windfall to carry forward into years ahead as a credit? Do the math if the average corporation actually only pays 23% while the official corporate tax rate is 35%. That’s a 12% reduction from the 35% rate due to deductions, credits and loopholes. Does the Republican plan provide that corporations bringing home $1.4 trillion dollars in the year of tax amnesty carry forward a 7% credit for the years coming after their relief from the “tax penalty” (which is actually their regular “fair share” of taxes as legislated) ?
Whatever. Let’s imagine the corporate lobbyists paid off the politicians and the politicains passed into law yet another corporate tax loophole created for a year: What assurance is there in the republican plan that any jobs would be created by providing that benefit to corporations? Is there any assurance whatsoever?
This is the paradigm of OWS. OWS is raising conciseness. It’s saying enough to the greed. Enough to the corrupted politicians pushing legislation like this on behalf of their corporate campaign contributors. It’s saying stop shredding our safety nets while you hand over this country’s tax revenues to corporations for them to move jobs to India. And now out of India and into the Philippines (cheaper labor there now) as I understand it.
Does anybody around here have anything for information other than another ocean of rhetoric and conjecture?
If there are no assurances provided in the Republican plan, do not be surprised when OWS’s response to this Republican-pushed tax amnesty for corporations is that the $1.4 trillion needs to be taxed at 35% whether or not it is brought home.
US Corporations need to pay their fair share, especially if they are not creating any jobs. Seems pretty simple.
Anonymous, get your liberal head out of your butt and stop blaming Corporations for America’s problems. As I have written before that it is the failed Keynesian economic policies of the Socialist Democrats that have given the banking and investment corporations the wealth for doing nothing that brought out the Occupier’s protests. I agree with some of the positions the protesters are making about government giving these banking and investment corporations way to much freedom to create things like the “derivitives” that caused this last near collapse of our economy bring about all the borrowing and bailouts. I strongly disagree that any banks that enjoyed the freedom to create financial entities like the derivitives, and then when the cash cow they were feeding off of, Freddie and Fannie collapsed took them with them, should have been allowed to fail.
But I want to ask you, Anonymous, who was it that was making the banking laws that gave them the freedom to come up with such things like derivitives that generated all the wealth and then when they lost it all when Freddie and Fannie collapsed, decided to pay them back dollar for dollar for all the money they lost? It was the Socialist Democrat Barney Frank. Barney Frank was and still is over the powerful Banking Commission that hands out the rules and laws that the banks, all of them, and investment brokers on Wall Street to make the huge money they were free to make for years. It was the conservatives in the Republican Party during the Bush terms that were trying to put a stop to such practices in banking laws, like making them give house loans to people who didn’t have the money to pay the loan, and put stricter controls on Freddie and Fannie, were fought by Bush himself and joined in with Democrats and liberal Republican’s who were making huge kickback money from all that free banking that was being enjoyed on Wall Street, and they still are.
None of the loose banking laws have been repealed. Barney Frank kept saying the it was the Republican’s who “didn’t ” want stricter laws put on Freddie and Fannie that caused the problems. No, that’s not true. The stricter laws Barney Frank is refering to were the restrictions the conservatives, that Frank lumped in as being “all” the Republican’s which it wasn’t by a long shot, wanted on Freddie and Fannie that would have prevented Barney Frank from making law that forced banks to give loans to people who didn’t have any income to be buying a house. Barney Frank kept saying that the “Republican’s” wanted to allow the banks to continue the “racist” policy of “red lining” anyone who shouldn’t be getting a loan to buy a house. It was Barney Frank who thought good banking policy of NOT making loans to people who can’t pay them back, was “racist”. Those were the laws that Barney Frank claimed were “no restrictions” on the banks, when actually it was the other way around.
In other words, Barney Frank lied to the public about what Republican’s, conservatives, were wanting to make that kept the poor from the American Dream. What bull crap! The protesters on Wall Street do not understand why they are there. They think, like you Anonymous, that it’s the greedy banking corporations that are the problem. They are not, and if America was run by the Constitution we wouldn’t be having this discussion.
The Bush Administration was full, FULL of Clinton banking and financial Goldman Sach’s golden parachutist who were making the laws backed by Barney Frank, Chris Dodd and many, many others in the Socialist Democrat Party who kept the conservative Republican’s from stopping the Banking Commission from giving way to much freedom to the bank corporations and international investment brokerages that are to blame for the prediciment America is in right now economically. These men who are in the Obama administration are doing the exact same thing that caused the problems to begin with. Nothing has changed. And all these men should be in prison and probably would have if they had not been able to convince Bush to sign the TARP bill giving the Treasury the authority to dole out 8 1/2 trillion dollars to pay back all the European banking corporatioins and the international investers all the money they lost on the derivitives. And the Obama administration is continuing to give them money, by the hundreds of billions of money borrowed from China.
How in the world can a country continue to stay on it’s feet if you figure for the past four Presidents since 1992 have done nothing but add to the debt built up from a lack of proper regulation on banks and how we use taxpayer money. And our income taxes don’t even pay for any function our government uses to operate by. All that money is borrowed, BORROWED!! And with the addition that Obama and the Socialist Democrats have added to the unfunded liabilities, they are now up to near 100 trillion dollars!!! If we sent in every dime we made to pay that down, we could never get it done in several hundred years.
Think we have that much time left?
Let me tell you a story. Prior to the 70’s, 98% of America’s businesses were in the hands of thousands of family owned and private individually owned businesses. Prior to the 70’s there were hundreds and hundreds of family and individually owned oil companies. I call them the “Mom and Pop” oil companies. This also includes the banks, manufactor’s, and industrial companies. But after 1970 when the liberals forced their way into our government, i.e. the Socialists and Communist backed liberal Democrats, that’s when entities like the EPA was created. It was the EPA who decided that all those Mom and Pop oil companies were messing up the planet and made laws those little oil companies couldn’t afford to comply with. The Socialist Democrats knew that, and doubled down on any oil company they could force through the courts to shut down. The environmentalist working closely with the Communist backed liberal Democrats were who created the laws that wiped out thousands and thousands of good paying oil and gas jobs, and the tens of thousands of support and supply companies. Those companies were owned by family and individual formed companies that had been in existance since the 1920’s. That was the beginning of the “government”s intrusion into America’s economic power that had prior to the Carter administration had solely been responsible for making America the world’s most successful and prospreous nation of free people on the earth. Why kill something off like that? What wrong was it doing? What real damage was it doing to the earth? What harm was a nation like that doing to the rest of the world? None, that is the answer to all those questions. As a matter of a fact America was the pattern that all other countries in the world were copying in order that they to could enjoy prosperity for those countries people.
That is until the damn Socialists and Communists came in and took over those countries, and wreaked their economies by instituting the exact same economic policies we are seeing our government being run by now.
I’m old enough to remember how life in America used to be before Socialist and Communists like Cloward, and Piven two economist therorists who, under the delusion of Communism believed America should be run their way also. Cloward-Piven is one of the economic stratigies Obama is using to destroy our nation’s economy. It is how Barney Frank was able to pass laws forcing the banks to make loans to people who couldn’t pay the loan back, and allow Wall Street banking corporations to be formed by believing that it would be better for them to get in bed with the government to protect them from laws that might take all their profits away, than to remain faithful to their investors, and share holders.
See, it’s the free people of America who used to run this nation’s economy, not the government. As soon as Carter forced the government into private business that things started to get bad. And we are looking at the end result of taking a nation away from the people, who were given the power to make the nation strong by the Constitution, and putting it in the hands of greedy Socialist who want control of all the money the people make from their own energy, risk, and investment that THEY believe is their right, not the governments right to take away.
The tax proposal Republican’s have for offshore monies, as is in the outline above in the article say clearly that businesses with offshore money would not suffer a penalty, and as I understand what it is saying, wouldn’t pay no more than 25%.
If Republican’s would realize that the Tax Reform Act of 1986 that Reagan signed into law removed all the index creep everyone including businesses suffered under. It created only three, after the law came in fully in 1991, and those indexes were 15% for people making up to $28,000 a year, 28% for everyone making up to $104,000 a year, and 33% for everyone making up to $one million a year. After that you contacted the IRS for a special schedule with percentages for those making more than a million a year. I don’t know what the tax was for big corporations other than what Reagan did for them in lowering their income tax from 70% under Carter down to 20% corporate tax. But that may have been business tax and not taxes on the individual who owned the corporation. I’m not a tax lawyer so I don’t know other than like some used to say, “What I read in the newspaper.”. But I don’t read the newspaper, I’m just using that saying to show that I’m not schooled in how to figure taxes for corporations.
But since then, and I don’t know how the Socialist Democrats got away with this, because Reagan’s law strictly said that NO other indexes would be added to this law. Well, Democrats don’t care about what some Republican law says, that’s why they make up their own. The Socialist Democrats have added several more indexes to steal money from people working hard for what they get. They are 10% for everyone above the poverty line. 22% to steal money from anyone who gets a raise. 35% to take even more money from people who are smart enough to become well off from their efforts. See, the Socialist just can’t leave people’s money alone. They have just got to get their hands on other people’s money. Don’t you know the saying about that, that Socialism fails when it runs out of other people’s money? That’s what’s happening.
WillofLa, the item I was referring to and asking for more info about was this one:
“Reform the tax code to allow American businesses to bring back their overseas profits without having to pay a tax penalty so they can invest in our economy and create American jobs.”
You responded to the item immediately above it… a peripheral item and one that I was not asking about.
While I appreciate the effort of your response I don’t believe you addressed my other question either. Can anybody answer it? Here it is:
Is there any mechanism in the Republican “jobs plan” that assures a single job will be created for these tax breaks given to corporations – or is it actually the case that corporations are not obligated to create any jobs in trade for these tax benefits for “creating jobs”? Thanks! 🙂
What jobs plan would you like to see instituted? Does it have a mechanism that “assures” job creation? Who will be exempt from paying income taxes in your plan or will everyone pay something? If everyone pays something, how does that break down? Explain to us the plan you think will work and let’s discuss that.
Obviously, you do not have a mind for business and are woefully unaware of what happens in a free market system using capital to make money. There are many that are entrepreneurially challenged.
First capital is worthless unless it is put to work. Those that are not entrepreneurially challenged, can put together a business plan to get a better return on their money than what the money market or mutual funds are able to provide.
Second, in order to do that, the businesses need to create jobs and hire people. Without employees they will not be able to make any money and get any return on their capital.
Third, the less capital they have, the fewer jobs they can create. For example, with $1 million dollars, an entrepreneur might be able to lease/buy equipment and facilities to create a business that would employ 10 people. If he had $2 million dollars, he could create a larger organization that could employ 20 or 30 people. (For those that are entrepreneurially challenged, the first $1 million would need to have a proportionally larger amount invested in facilities and equipment, where the additional money would be able to be used to hire more employees, proportionally speaking).
Fourth, the more it costs an entrepreneur for non-employee salary expenses, proportionally, the fewer employees he can afford to hire. You see, the more people he can hire, the more profits he can make. So he tries to keep his non-salary items down, to hire more people, and get a better return on his capital.
Fifth, taxes, fees, and the costs of regulation compliance, are all non-salary costs. The higher these are, the fewer people he can hire. The lower these costs, the more people he can hire and the more money he can make.
If your entrepreneurially challenged mind can understand this simplistic explanation, you will now be able to understand why lower taxes, fees, and regulation compliance costs will guaranty the creation of jobs for economic recovery.
Ignorant people say the trickle down theory did not work. They are wrong. 30 million dirt poor people came into this country illegally over the past several decades. If trickle down did not work, they would still be dirt poor. If the immigration laws on the books had been enforced, it would have been legal Americans at the bottom who would have benefitted from trickle down. But because they were not at the bottom, they did not benefit as much.
Finally the fat cats at the top are getting a disproportionally larger share of the profits because there are so many job seekers willing to work for less with no healthcare and no pensions, THAT is driving down wages for everyone and eliminating company benefits. Add in the laws passed by the politicians that sent millions of jobs overseas, is there no wonder there are 14 million unemployed Americans. If the government had not caused either one of these to happen, we would have full employment NOW. Not to mention higher wages and company paid healthcare and pensions. Go figure.
I did not think believe any could answer my question. I was right. As for your arrogant rant above, I’ve very likely lost more capital in failed business ventures than you’ve earned during your lifetime. Your political rhetoric and conjecture surrounding trickle-down is boring. The best trickle down has done, in your worldly opionion is employ 30 million illegal aliens at poverty level? Thanks – but I’ll pass on another 30 years of the trickle-down. So will the other 99% who are not part of the army vesting in defending the 1%.