Costly Regulations Cost Us American Jobs
According to a September 2010 report from the Small Business Administration, total regulatory costs amount to $1.75 trillion annually—enough money for businesses to provide 17.5 million private sector jobs with an average salary of $100,000. As of 2008, small businesses—which have created 64 percent of all new jobs in the past 15 years—face an annual regulatory cost of $10,585 per employee, which is 36 percent higher than the regulatory cost facing large firms. Some of these regulations include requiring microwave manufacturers to measure the amounts of energy their products use in the “off” position, stricter regulations on the amount of dust on American farms or imposing a fee on tree sales to promote tree sales. Unfortunately, President Obama continues to make the burden worse. According to Republican staff estimates, the government’s health care takeover has already added 6,578 pages of regulations and Federal Register notices and the laws major provision don’t take effect until 2014. A recent study by the Heritage Foundation found that an unprecedented 43 major regulations were imposed in fiscal year 2010 with a total economic cost of $26.5 billion, the highest total since at least 1981.
According to the Joseph Mason study, the Department of Interior’s de facto moratorium of exploration in the Gulf of Mexico could cost 36,137 jobs. In addition, “more than 80,000 jobs could be lost due to EPA regulations targeting the cement industry.” Finally, EPA greenhouse gas regulations could cost 1.4 million jobs.
According to the Joseph Mason study, the Department of Interior’s de facto moratorium of exploration in the Gulf of Mexico could cost 36,137 jobs. In addition, “more than 80,000 jobs could be lost due to EPA regulations targeting the cement industry.” Finally, EPA greenhouse gas regulations could cost 1.4 million jobs.
Too Much Government Spending Results in Too Few Jobs
In 2009, the White House claimed that if the $1.16 trillion (CBO estimates the cost of the bill will reach $814 billion and interest on the debt for the bill will be at least $347 billion) stimulus was approved, unemployment would not rise above 8 percent. In reality, unemployment is currently 9 percent and has been above 8 percent for 28 months. In the same report, the Obama administration claimed the stimulus would “save or create at least 3 million jobs by the end of 2010.” In fact, a new report by economists Timothy Conley from the University of Western Ontario and Bill Dupor from Ohio State University, found that the President’s failed stimulus “destroyed or forestalled roughly one million private sector jobs.” Instead of creating jobs, the largest stimulus bill in history crowded out private sector growth and cost Americans jobs.
Record spending, deficits, and debt by the Obama administration has created vast uncertainty for job creators and is keeping investors on the sidelines. In 2007, the last year under a Republican budget resolution, the deficit was $160.7 billion or 1.2 percent of GDP and it had decreased every year since 2004. According to President Obama’s FY 2012 budget, the deficit for 2011 will be $1.64 trillion or 10.9 percent of GDP. According to Fed Chairman Ben Bernanke, this runaway spending will destroy jobs and halt economic growth. Bernanke stated, “Expectations of large and increasing deficits in the future could inhibit current household and business spending—for example, by reducing confidence in the longer-term prospects for the economy or by increasing uncertainty about future tax burdens and government spending—and thus restrain the recovery.” Sadly, the President wants to double-down on our unsustainable path by borrowing $13 trillion over the next decade and spending $5.7 trillion over the next ten years just to pay the interest on borrowed money.
Record spending, deficits, and debt by the Obama administration has created vast uncertainty for job creators and is keeping investors on the sidelines. In 2007, the last year under a Republican budget resolution, the deficit was $160.7 billion or 1.2 percent of GDP and it had decreased every year since 2004. According to President Obama’s FY 2012 budget, the deficit for 2011 will be $1.64 trillion or 10.9 percent of GDP. According to Fed Chairman Ben Bernanke, this runaway spending will destroy jobs and halt economic growth. Bernanke stated, “Expectations of large and increasing deficits in the future could inhibit current household and business spending—for example, by reducing confidence in the longer-term prospects for the economy or by increasing uncertainty about future tax burdens and government spending—and thus restrain the recovery.” Sadly, the President wants to double-down on our unsustainable path by borrowing $13 trillion over the next decade and spending $5.7 trillion over the next ten years just to pay the interest on borrowed money.
More Taxation Will Not Create More Jobs
The President’s budget for 2012 calls for $1.5 trillion in job-destroying taxes. The President says that the bulk of these tax increases would only impact the rich. But the fact remains that these tax increases will kill American jobs. More than 75 percent of America’s small businesses file their taxes as individuals. Half of them would suffer from a higher tax burden under the President’s proposed tax increases, hurting their ability to hire more workers and pay their current workers more. An increase in the top two rates would impact small businesses that employ approximately 22.5 million workers. As the National Federal of Independent Businesses said just months ago, “Raising the top marginal tax rate would have hit small businesses the hardest just when the country needs them to invest, expand and hire new workers.” Our outdated and complicated tax code, which boasts the second highest corporate tax rate in the world, has destroyed America’s global competitiveness. According to Cisco Systems CEO John Chambers, "We are dealing with a tax system that is a dinosaur. Every other government in the world has realized that the U.S. has it wrong. They’re saying, ‘I'm going to have lower taxes, period.’ That's what you see all across Western Europe, that's what you see in Asia in the developed countries.” (gop.gov)
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