It’s more important than ever to determine how “in touch” with problems political candidates are.
Most voters let candidates get away with meaningless, broad sweeping statements like “We’ve got to get the bank credit freeze melted so we can create jobs. I intend to concentrate on creating jobs!”
What has that person just said? Nothing. Before asking “What is your most important priority if elected?” you might want to make sure you know the answer. There’s a rule to follow when dealing with politicians. It strongly resembles a rule lawyers observe in the courtroom: Never ask a question if you don’t know the answer. The objective is to test the candidate’s knowledge, not your own.
All politicians say we need to create jobs. How does your candidate plan to do that?
First, here’s what should not be done. I hate starting with a negative, but so many examples of what not to do have been created by the Democrat-controlled Congress – and they are reaping the “no new jobs” whirlwind from their ill-gotten power ploys.
Nationalized health care will hit independent business hard
First, I wouldn’t pass a health care bill that costs trillions of dollars – and that’s just the cost of the red ink we’ll need to purchase to keep track of the debt.
The cost of nationalized health care to business is so uncertain, companies – especially independent businesses – aren’t hiring. In fact, numerous independent businesses are already going out of business because of perceived cost increases. They were barely hanging on and know that additional costs will put them under. Better to deal with it now, they think, before their debt load gets worse. Nationalized health care will hit independent business hard.
No New Taxes
Second, no new taxes.
According to the House Ways and Means Committee Republican staff, middle-class tax increases from nationalized health care include everything from a $32 billion tax on high-cost health plans to mandated taxes on individuals who don’t purchase government-approved health insurance. There are increased penalties for nonqualified health savings accounts – they even placed a tax on tanning services. There is an employer mandate tax and a sales tax on medical devices, a tax on health insurance premiums, a tax on prescription drugs, and a tax on self-insured health plans.
For the first time, the Medicare tax will apply to capital gains, dividends, interest, rents, royalties, and other investment income of single taxpayers earning over $200,000 and couples earning over $250,000. Capital gains and dividends are currently taxed at a top rate of 15%. That rate is scheduled to rise in 2011 to 20% and 39.6%, respectively. The top tax rate on dividends will nearly triple – from 15% to 43.4%. The increased dividend tax will hit those on fixed incomes especially hard.
Some people don’t care if rich people get taxed (though these taxes impact the middle class, not just the wealthy). Frankly, people with such an attitude shouldn’t be allowed near voting booths. Poor people are very nice. I was one at one time – but I’ve never seen a poor person create jobs. If you think over-taxing the market segment that creates jobs solves unemployment, you are pitiably uninformed.
Another thing I wouldn’t do is try to pass financial services regulatory control that gives more authority to a non-government private corporation like the Federal Reserve. The Federal Reserve had ample authority under the Home Ownership and Equity Protection Act (HOEPA) to ban liar’s loans (subprime) which would have prevented the real estate bubble from hyper-inflating. There is nothing “federal” about the Federal Reserve and it does nothing that couldn’t be done by the U.S. Treasury Department. Many banking experts view the Federal Reserve as a wholesaler – a middleman that is totally unnecessary to the monetary process. In my opinion, any political candidate who supports regulatory reform as now proposed supports a cover-up of what really happened.
Who in his right mind wants to become a Tax Slave?
I wouldn’t let tax break legislation that has helped stimulate business growth expire. That’s happening, and it will have a negative impact on new job creation.
Every signal given by government points to higher taxes. Who in his right mind wants to become a Tax Slave? Let’s say an employer borrows $1 million to expand his business. Business expansion equates to new jobs. Let’s say the planned return on investment is 15% ($150,000). It will be taxed into oblivion via income, capital stock and death taxes. And there is never a guarantee of success. It could go the other way! In the current tax environment, people would be crazy to borrow and expand businesses that employ people.
Lower taxes. I realize it slows the growth of government, but either Obama wants jobs or he wants more government. We all know what he wants – and that’s why there are no new jobs.
A good candidate will promise not to pass laws that force States to pay for federal legislation. States haven’t felt this threatened by the federal government since the Civil War. The only proof you need of that is the number of States passing State sovereignty legislation and laws giving them the right to create their own currency.
There are things that can be done to stimulate job growth – but first, let’s define job growth. It doesn’t mean an expansion of government, which requires the hiring of people paid with tax dollars. If you haven’t figured it out, government growth is the reason for all of the tax increase proposals.
People who work for government are users of tax funds, not providers of them
People who work for government are users of tax funds, not providers of them. Sure. They pay income taxes. Their local, state and federal salaries cost taxpayers 100 percent and they repay from 20 to 35 percent of that 100 percent by paying income taxes – a 65 percent tax loss. Jobs that contribute to the tax base are created by the private, not the public/government, sector. Are government jobs important? Some are; some aren’t. Are government employees worth more in salary than their counterparts in the private sector? No, but statistics show they are being paid more. How does your political candidate feel about that – especially since it negatively impacts private sector job creation?
It might surprise you, but business people say the poor job market has little to do with lack of bank credit. Companies that aren’t financially troubled have no difficulty getting credit. Even during this crunch, a friend says he was offered more than he could use, barring a massive expansion program.
Almost every businessman I’ve talked to asks: “Borrow for what?” In other words, they aren’t willing to borrow in an environment of increased profit risk. Since a large part of that profit risk involves taxation and the cost of government programs, people won’t borrow, pay interest on the money only to find government imposing another new tax or costly health program that will cause them a loss.
Instead of credit as a primary cause of no jobs, independent business owners speak of the regulatory environment as “crushing.”
When it comes to a production company (as opposed to a service company), environmental laws and regulations make almost every employer in the U.S. a criminal. There are those who “get caught” and those who don’t. This is especially true for resource producers (farmers, miners, loggers). Disobey the government (or environmentalists) on Issue A and they will get you on Issues B, C, D ad infinitum.
All companies have a huge legal/regulatory problem. OSHA and “disability” mandates for starters. A friend had to spend $30,000 putting in the “disability” infrastructure for a small single-level art store out in the country even though his parking lot is completely level and access easy. “One size fits all” regulations applied to him. That $30,000 could have provided a job.
My business friends say it would be helpful if the Obama Administration had one person in a position of authority with Main Street business experience. “It couldn’t be more hostile,” said one. “Employers are not going to gamble ‘things will get better’ when ALL economic signs point South. Does anyone think Obama, Pelosi, and Reid will do anything to make life easier for Main Street businesses? They are clueless. Independent business owners in America believe there is no future until 2013 at the earliest.”
That is an especially big red flag because unless they are employed by government, most Americans are employed by independent business and independent business is what normally grows the U.S. out of recessions.
Here’s what good candidates will roll up their sleeves and promise to do if elected:
- Cut taxes (be sure and ask how)
- Decrease regulations (or at least put a moratorium on new ones)
- Eliminate earmarks and grants. (Grants are earmarks in disguise)
- No bailouts to anyone – by law - including the States
- Cut government spending – wholesale. Cut 10% across the board. It’s a good starting point
- Tort reform (stop unnecessary litigation; environmental litigation related to the Endangered Species Act costs millions)
- Stop tinkering with phony, unproven (such as the cap and trade program and the 25 x 25 program) energy programs and let the free market work
There is only so much capital available in the marketplace. Either it is spent on things like job growth or it is spent on government programs like nationalized health care – or, amnesty for illegal squatters. Every time the U.S. government creates a new program and grows bigger, every time it prints money to fund its programs, your freedoms diminish.
Thus, part of the answer to the question “How will you create new jobs if you’re elected?” is answered only by another question: “How can responsible politicians create jobs in the private sector when the public elects irresponsible politicians whose reckless over-spending removes from the marketplace the capital necessary to create them?”
