It is very obvious that the job market is stagnant to the point that many people are giving up their searches for employment. Why are we in this predicament? Just look to Washington.
Our government has imposed onerous regulations and policies that have destroyed private-sector jobs while bloating the government payroll. The government does not make a single product; therefore, the economy has stalled while businesses are afraid to expand and hire. Nothing will destroy small businesses’ confidence better than an uncertain future of taxes and mandates, such as those being imposed by the new health-care regulations. These regulations cost the economy nearly $2 trillion a year, according to an article by Mike Tighe posted on www.newsmax.com.
The government needs to downsize and get out of the way of private industry by eliminating burdensome regulations. Businesses constantly are being dumped on with regulations that prevent innovation and growth. Congress needs to review all imposed on businesses and eliminate those that do not involve job safety.
When a company has to pay 35 percent in federal taxes alone, it has to find this money somewhere and that somewhere is usually by eliminating jobs. According to data provided by the Organisation for Economic Co-operation and Development, the United States’ corporate tax rate, at 39.2 percent, is the second-highest in the world economy (behind Japan at 39.5 percent), which prevents foreign investment in America.
To stimulate the economy and encourage new business, the tax rate should be lowered to 20 percent or less. Of course, I’d prefer a consumption tax in place of policies that allow companies like General Electric, which netted $5 billion in profits last year, to pay nothing in federal taxes.
The government taxes foreign profits brought to the states even though these profits were taxed in the country where they were earned. This policy needs to stop so that our international companies can reinvest in America, not in a foreign country. In addition, House Democrats reportedly have held up pending trade agreements that, if executed, would create more than 250,000 jobs that presently are going to other, more aggressive countries.
Our work visa system has challenged American high-tech companies to find enough qualified graduates in math and technology. Because they are unable to obtain work visas, many foreign students are forced to return to their countries after being educated here while there are not enough American students studying these fields. By using highly qualified foreign workers, businesses can escalate innovation and create more jobs.
Energy is necessary for economic growth; therefore, we need to contain energy costs. The U.S. Environmental Protection Agency must stand aside while the government allows more exploration and production of oil and natural gas within our borders and offshore. This alone would create many long-term jobs. It also will grow the economy by lowering the cost of energy, which in turn lowers the cost of operating a business.
If the government does not control spending and reduce the deficit, it will destroy our economy by causing tax rates to increase, spurring uncertainty in future business trends and bankrupting our country. Would you put your money into a bankrupt company or country? Whenever costs are lowered and controlled, businesses can invest in growth and create more jobs.
Calderone is a conservative who lives in Midway. He is a professional salesperson and for 30 years has written articles for trade publications in various fields.