President Obama has once again came up with a government solution to the problems that are hurting our economy. This new plan is being called a "Jobs Bill". President Obama is vowing to not give up on getting this bill passed through Congress. The President and his administration is once again arguing how crucial this piece of legislation is to getting the economy rolling. This legislation will do almost nothing to get job creation and get the economy back on track.
There are a two good things coming out of this bill. First it is predicted that the bill can decrease unemployment by 1%. Granted the United States stands at 9.1% unemployment and one percent will do almost nothing to help the economy. The other plus about this bill is it cuts payroll taxes. This is a step in the right direction to economic growth but that’s all it is a step. A one year cut in payroll taxes would do almost nothing. No successful or smart business plans for just one year. A one year cut leaves many unknowns. Businesses will not know how to plan for the future because they do not know how much they will have to pay in taxes. If pay roll taxes were decreased with no timetable then you would see job creation.
Other than those two pluses President Obama’s plan is another government intrusion that will harm the American people. The plan is pure and simple an increase in government oversight of the economy. President Obama refuses to address the real problems plaguing the economy. What needs to be included in a jobs bill is tax reform, less regulation, entitlement reform, and a path towards energy independence. By tax reform I recommend tax decreases across the board and to broaden the tax base. Lowering taxes would leave more money to be spent by business and people which will get money circulating throughout the economy and will lead to growth. Income taxes, capital gains, and payroll taxes are some of the taxes that need to be decreased. Raising taxes in tough economic times will only make things worse. Less regulation will help allow business to conduct business. For example, the EPA is hindering jobs through many of their policies that aim to help the environment but in the end just hurt job growth. Another example is permit to drill approvals have decreased 37% since 2006. Millions of jobs would be created if drilling was approved because people would have to man the drilling area, refineries would be created, more truckers to transport the oil, etc.
Entitlements are the biggest portions of the federal budget and will only get larger unless these programs are reformed. These programs have no real budgets or budget controls Social Security and Medicare and bankrupt and yet no one is addressing the problem. By reforming entitlements by slowly aging them out, billions of dollars can be saved and that money can be given back to the people by getting rid of social security and Medicare taxes. What I mean by aging out the program is allow those who are already depending on the system to continue to use it but those who are fifteen years away or more from using the program should be taken out.
Next the U.S needs to become more energy independent. Energy Consultant Wood Mackenzie found that if the U.S allows access to domestic resources and imports of Canadian oil would generate more than 1 million jobs by 2018. The U.S is the Saudi Arabia of coal and natural gas and yet those resources are essentially going untouched due to undue EPA regulations. A prime example of how taping into energy sources can help the economy is the Marcellus Shale formation which has created 57,000 jobs and has yielded $4.8 billion.
Getting the economy back on track is not through more government programs. Ever since the government got started in trying to fix the economy it has only gotten worse. The government needs to create policies that promote free enterprise and help reduce the burden of government on business.
Michael Lesko
SUR Contributor
There are a two good things coming out of this bill. First it is predicted that the bill can decrease unemployment by 1%. Granted the United States stands at 9.1% unemployment and one percent will do almost nothing to help the economy. The other plus about this bill is it cuts payroll taxes. This is a step in the right direction to economic growth but that’s all it is a step. A one year cut in payroll taxes would do almost nothing. No successful or smart business plans for just one year. A one year cut leaves many unknowns. Businesses will not know how to plan for the future because they do not know how much they will have to pay in taxes. If pay roll taxes were decreased with no timetable then you would see job creation.
Other than those two pluses President Obama’s plan is another government intrusion that will harm the American people. The plan is pure and simple an increase in government oversight of the economy. President Obama refuses to address the real problems plaguing the economy. What needs to be included in a jobs bill is tax reform, less regulation, entitlement reform, and a path towards energy independence. By tax reform I recommend tax decreases across the board and to broaden the tax base. Lowering taxes would leave more money to be spent by business and people which will get money circulating throughout the economy and will lead to growth. Income taxes, capital gains, and payroll taxes are some of the taxes that need to be decreased. Raising taxes in tough economic times will only make things worse. Less regulation will help allow business to conduct business. For example, the EPA is hindering jobs through many of their policies that aim to help the environment but in the end just hurt job growth. Another example is permit to drill approvals have decreased 37% since 2006. Millions of jobs would be created if drilling was approved because people would have to man the drilling area, refineries would be created, more truckers to transport the oil, etc.
Entitlements are the biggest portions of the federal budget and will only get larger unless these programs are reformed. These programs have no real budgets or budget controls Social Security and Medicare and bankrupt and yet no one is addressing the problem. By reforming entitlements by slowly aging them out, billions of dollars can be saved and that money can be given back to the people by getting rid of social security and Medicare taxes. What I mean by aging out the program is allow those who are already depending on the system to continue to use it but those who are fifteen years away or more from using the program should be taken out.
Next the U.S needs to become more energy independent. Energy Consultant Wood Mackenzie found that if the U.S allows access to domestic resources and imports of Canadian oil would generate more than 1 million jobs by 2018. The U.S is the Saudi Arabia of coal and natural gas and yet those resources are essentially going untouched due to undue EPA regulations. A prime example of how taping into energy sources can help the economy is the Marcellus Shale formation which has created 57,000 jobs and has yielded $4.8 billion.
Getting the economy back on track is not through more government programs. Ever since the government got started in trying to fix the economy it has only gotten worse. The government needs to create policies that promote free enterprise and help reduce the burden of government on business.
Michael Lesko
SUR Contributor