Posted on 01/31/2010 6:24:02 AM PST by Son House
Ross DeVol of the Milken Institute on the best ways to create long-term job growth.
1. 2nd Highest Corporate tax rate, behind Japan. OECE(?) Average Corporate tax 22%
2. Research and Development tax credit just expired, our R&D tax credit is 17th in the world, and the only one that expires.
3.Add Nuclear Energy jobs
DeVol says 2 million jobs can be added over the next 10 years with these 3 changes.
DeVol says 2 million jobs can be added over the next 10 years
^
Compare that with the Stimulus bill, 3.5 Million job in 2 years. It seems someone with high hopes needs new economic experts, and DeVol may be just the man;
Obama’s Weekly Radio Address 02 21 09
http://www.youtube.com/watch?v=6vWmtPRPpJo
THE PRESIDENT: “Earlier this week, I signed into law the American Recovery and Reinvestment Act — the most sweeping economic recovery plan in history.
Because of this plan, 3.5 million Americans will now go to work doing the work that America needs done.”
FairTax makes the corporate tax, personal income tax, investment earnings, interest income earnings all go away.
10 to 15 trillion dollars are earning money in offshore banks and investments to avoid the insatiable tax man in the USA. I’d like to see this investment money flood back into the USA.
Cutting government spending as a % of the GDP is also critical. Currently pushing 20% I think. It need to be under 10% or even under 5% of GDP.
Well I’m opening a business right now
anything that would liberate credit would be dandy
Milken Institute home page + more;
http://www.milkeninstitute.org/
Executive Summary:
Jobs for America: Investments and Policies for Economic Growth and Competitiveness
http://www.milkeninstitute.org/publications/publications.taf?function=detail&ID=38801228&cat=resrep
The policy changes analyzed – decreasing U.S. corporate tax rates to match the OECD average, increasing and making permanent the R&D tax credit and modernizing export controls on certain products – would spur significant economic growth in the medium- to long-term.
For more immediate job growth, Jobs for America looks at infrastructure investments in 10 project categories, totaling $425.6 billion: highway and transit projects; broadband; offshore drilling and onshore exploration and development of oil and natural gas resources; drinking water and wastewater infrastructure; the smart grid; nuclear energy; renewable energy; the NextGen air traffic control system; inland waterways; and clean coal.
These investment proposals utilize a mix of public funding, public-private partnerships and other types of incentives such as loan guarantees.
I would be careful about this wish. There is a river of unliberated money now. If that money is liberated, we will see a nasty bout of inflation, perhaps permanent inflation as the value of the dollar declines. Banks do not have the capital to lend available dollars from the fed. The fed has been expanding the money supply sharply in the last year or so with continued expansion in the future.
We should focus on reducing government imposed employment costs. Even if you reduce corporate tax rates and denationalize the energy industry, there is still a problem with government imposed employment costs. Here is just a small list of government imposed employment costs:
- Unemployment compensation taxes: many businesses have seen a sharp increase in these taxes because of the ever extending unemployment benefits
- Lilly Ledbetter law: substantially increases the threat of employment lawsuits increasing many employment costs and litigation uncertainty
- Labor law regulations: unions have been given much stronger hands with new regulations and a very labor friendingly administration
- IRS audits for employee classification status: the IRS will substantially increase audits of small and medium sized businesses especially over the employee classification status. This misguided policy makes it very difficult to work as an independent contractor essentially forcing organizations to use expensive middlemen.
There are a host of other regulations that directly increase the cost of production. For example, the Consumer Products Safety Act was substantially revised by adding incredible new requirements for product testing. The proposed new ozone standards will impose higher costs on energy intensive industries. If Democrats get their ways on health care, unions (card check), and CO2 regulations, employee and production costs will soar.
The net effect is that organizations have strong incentives to avoid the increases in employee and production costs by moving operations. Lowering corporate tax rates will not change that equation.
FairTax makes the corporate tax, personal income tax, investment earnings, interest income earnings all go away.
A 30% National Sales Tax will make EVERYTHING go away except for maybe musty mold and mildew stains.
Only an IDIOT would support that fraudulent "FairTax" legislation.
It's backed by the worst double-talking swindlers in Congress.
How about cutting payroll taxes on American citizens?
It brings in the same revenue that is currently being generated.
If you say it is 30%, that is what you are paying now with the compliance costs, embedded corporate taxes, income taxes, death taxes, capital gains taxes, interest income taxes.
I would regain some control over what my taxes are with my spending. Right now, it is the governments business how much money I make and therefore has the right to stick it’s nose in my private personal finances. I’d really like that to stop and it is essential to restore our government to it’s constitutional limits.
Go ahead and love the IRS and the current social engineering flucked up system we have now.
embedded corporate taxes,
The notion that corporations can merely "embed" and "pass along" costs and/or taxes to the cosumer is a marxist theory that relies on a gullible and dumbed-down electorate.
IOW, I ain't drinking your Kool Aid.
Go ahead and raise corporate income tax to 70%. Take before and after snapshots of the prices.
Spoken like a truely un-informed, anti-fairtaxer...
What you dont take into account is that you are already paying that extra 30% due to hidden embedded taxes (The number was 22% but it has probably gone up a bit by now, so I will stipulate to your 30% number)
Do you really like seeing the whores and drug dealers living a tax free lifestyle?? They live off the 35% that all of us regular employees pay... collecting their food stamps and welfare checks, because they are not “employed”, while they spend their money that the government does not know about on more drugs, cable tv, cellphones, thumping stereo’s and 24” wheels for their rides... The fairtax would tax them on their spending at the exact same rate you and I would get taxed at... Man that sure sounds evil now that I read it in writing!
I think only an idiot cant see that it would make America the Economic leader of the world again, if we would just wake up, and quit taxing accomplishments, and instead tax consumption, but I dont think it will ever happen without some major changes.
Actually, all it would take would be to end all payroll withholdings and present the tax payer with their bill on April 15th, just like everybody that is self employed, sees quarterly and the Fairtax would be voted in the next election cycle.
ABOLISH the IRS, Support the Fairtax!
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