Deficit Reduction and Out-of-Control Spending
It is no secret that our country’s massive debt is hurting
the economic environment. When the President took office the federal debt stood at an astonishing $10 trillion. Under President Obama
, our federal debt has exploded even further, growing by 60% to now over $16 trillion. Fearful of new proposals to increase their taxes to combat the debt, businesses are sitting on capital rather than reinvesting in their own businesses. The President’s economic advisors have indicated that adding just 1 percent to our GDP can create upwards of 1 million jobs, and it’s precisely this 1 percent drag on our GDP that experts believe the size of our debt is causing. Currently our debt is over 100 percent of yearly GDP, an unsustainable level not too far off from some of our European friends who have been plagued by turmoil and economic collapse.
House Republicans continue to offer balanced budget solutions
to curb the trillion dollar deficits that have taken place the last four years under the current Administration
. However, the Senate has failed
to offer a budget
of their own the last four years.
Red Tape and Regulations
I am continuing my efforts
to reduce burdensome regulations and costly red tape for households and employers. From 2009 to 2011, there were more than 400 regulations proposed by the current Administration which had an economic impact of more than $100 million. Or put another way, if you stacked the paper the rules issued just last year were printed on, it would stand nearly 13 feet high. The impact of new regulations is real and costly. The Small Business Administration reports the average annual cost per household from federal regulations is $15,000 and the cost per employee that federal regulations place on small businesses registers is a whopping $10,585. When asked by a U.S. Chamber of Commerce Small Business Outlook Survey, 78% of small businesses surveyed reported that taxation, regulation and legislation from Washington make it harder for their business to hire more employees.
Regulations by the Numbers:
Comprehensive Tax Reform
- $518 Billion: Amount of Regulatory Burden Since President Obama Took Office
- $236.7 Billion: Amount of Regulatory Burden in 2012
- 86.8 Million: Amount of Paperwork Burden Hours Imposed By Federal Government Regulations in 2012
- 1.65 Million: Jobs Forcasted to be Lost Due to New and Pending EPA Regulations
- $15,500: Annual Cost per Household from Federal Regulations
- 12,649: Pages of New Rules Added to the Federal Register during Obama's First Three Years in Office
- $10,585: Cost per Employee that Federal Regulations Place on Small Businesses
- 822: Number of Regulations in the Obama Administration Pipeline that would Impact Small Businesses
We must reform our job destroying tax code. Simply put, the tax code is too costly, too complex and is costing jobs. This is one of the reasons I fought to get on the House Ways and Means Committee, because I believe reforming our tax code
will be key to job creation in this country. On Ways & Means I have been a leader
in working on comprehensive tax reform to lower taxes for individuals and small business, allowing people to keep and invest more of their own money while attracting businesses to the United States. I remain focused
on transforming today’s tax code from one that prevents job creation to one that promotes job creation. Comprehensive tax reform is an essential step in spurring the economic growth necessary to get the more than 14 million Americans looking for jobs back to work.
A recent survey of small businesses found that taxes were the largest impediment to investing, expanding and hiring. Additionally, having the highest business tax rate in major OECD nations has resulted in employers looking to locate abroad rather than hire here at home. If the U.S. wants to be competitive once again, its starts with reforming our tax code. I will continue my work to draft a proposal to bring down our employer tax rate, while ensuring it doesn’t add to our deficit by simultaneously getting rid of the 70,000 pages
of special interest deductions, loopholes, credits, and exemptions which are benefiting few, but costing all in the form of a higher tax burden. Reforming our tax code will lead to the creation of close to 1 million jobs in the first year alone.
The push for comprehensive tax reform
that makes the tax code simpler and fairer for families, while strengthening the economy so more jobs and higher wages are created, received a significant boost on February 26, 2013. Signifying the importance tax reform holds for House Republicans, it was confirmed that Speaker Boehner is holding H.R. 1 for a comprehensive tax bill. Camp reiterated his goal of having the Committee act on a bill this year. Independent economists also verified today that reform would enhance job and wage prospects for American workers.