The economy: Remove federal stumbling blocks from the path of vibrant free enterprise
EDITOR’S NOTE: The writer is addressing the question, “What are the five best steps Washington can take to boost the economy?”
Will the recovery finally take off next year, or will Americans have to contend with an additional 12 months of sluggish economic growth, stagnant wages and high unemployment?
Much will depend on Washington. While not responsible for creating jobs, government could at least stop making it harder for others to do so.
For Washington, Job 1 should be to remove the stumbling blocks it has erected in the path of economic growth. Here are five steps to do just that.
--Fix the fiscal cliff fiasco: The threat of tax hikes slated to take effect Jan. 1 has cast a pall on job creators and investors for most of the past year. Not knowing what their taxes rates will be, they’ve prudently opted to sit it out until they know the score.
Even at year’s end, they still don’t know what their next tax bill may look like. The do know, however, that it could be horrendous. Expiration of the Bush tax policies, five new tax hikes for Obamacare, and more. It all adds up to nearly $500 billion siphoned from the private sector in just the next 12 months.
If Congress allows that to happen, it will inevitably mean less investing, fewer new jobs and poor wage growth. Step one for improving the job situation: prevent all tax hikes from slamming the economy on New Year’s Day.
--Open all of America’s energy resources: One bright spot in the economy is a host of new energy jobs. Places such as North Dakota, Pennsylvania and Wyoming are attracting workers from across the country to fill high-paying energy jobs. But virtually all of this boom has occurred on private lands. Domestic energy producers could add more than 1 million new jobs in just five years if Washington allowed them reasonable access to oil and gas reserves on federal lands and offshore. The administration could start by approving the Keystone XL pipeline and ending its de facto moratorium on approving drilling permits.
--Reform the tax code: Our current tax code is far too complicated. Its countless special interest provisions, distortions and disincentives hold back growth. Reform that broadens the tax base and lower tax rates can unleash economic growth.
Unfortunately, the tax discussion prevailing during the run-up to the fiscal cliff has focused on raising rates to generate more revenues for the U.S. Treasury. That’s a recipe for tax deform. The discussion in 2013 should shift to a designing a pro-growth tax code.
--End the regulatory assault on business: Washington has unleashed a massive torrent of costly regulations, and dozens more are in the pipeline. New and pending rules threatening to layer on billions in compliance costs only adds to the uncertainty engulfing employers. And uncertainty breeds delay in hiring, employee pay raises and new business start-ups.
The most growth-inhibiting regs on the horizon for 2013 are the Dodd-Frank financial regulations, Obamacare infrastructure and numerous global warming rules spewing forth from the EPA. Better to put the brakes on pending regulations and rules and roll back existing ones that are harmful, outdated or unnecessary.
--Fix the real fiscal crisis: Federal debt is reaching the point where it, by itself, will markedly slow the economy. We must reduce the debt mess, and that will require fixing its root cause: runaway spending—particularly the big three entitlement programs.
Until Washington tackles the real problem, businesses can have little confidence that Washington will ever create a more favorable economic environment. Instead, they’ll be left worrying about a Euro-style debt crisis or more ill-advised tax increases. To show it’s serious about getting its fiscal house in order, Washington must begin to pursue rationally entitlement reform—the sooner the better.
The good news: These five steps are not controversial; many have bipartisan support. All that’s needed is leadership.
Alison Acosta Fraser is director of the Roe Institute for Economic Policy Studies at The Heritage Foundation. Readers may write to the author in care of The Heritage Foundation, 214 Massachusetts Ave. NE, Washington, D.C., 20002; Web site: www.heritage.org.
Dec 30, 2012 at 6:27 a.m.
Suggest removal
wonders...the montra of the left..do it because it feels good no matter what the real outcome is, we must feel good. You can pass all the gun laws you want but there will still be mass murders. But it feels good. Soak the rich and you will still have people who would rather have someone else pay their way, in fact, the more you soak the rich the more people will say, "why work?. But it feels good. We have half the people in the this country who have no skin in the game. Because it feels good. And it will get worse. We are becoming Greece junior. We are losing our place in the world as a country where you can come and with some ambition and motivation earn a good living. Now it's free stuff for you. After all we must "level the playing field." "You didn't build that!" It is sad.
Dec 29, 2012 at 8:35 p.m.
Suggest removal
I have read all the comments here but no one has really addressed the issue, at least I don’t think so.
1. The income tax program needs to be overhauled. I don’t think anyone will deny that.
2. Both side of the isle need to start to work for the better of the entire country. Not the poor and not the rich, but everyone.
3. Raising taxes on the wealthy is not the answer, from everything I can read it will not do enough to really make any difference other than a “feel good” policy.
4. Take more power away from the federal government and put it back to the states and cities. No one in Washington knows much at all about Milton. But the people in Milton sure do. Let’s get the money to places that will know what they need.
5. We talk about the feds money, the state money and the other taxes. It is OUR money period. I have four pockets in my pants, what one is for what tax? Is the right front for the city tax? The back left for the federal tax? It ALL comes out of our pockets; it is not some magic money that just appears.
Until we as a GROUP and that means all of us get fed up enough with what is going on I can guarantee you it will be business as normal in Washington. To argue who is right and who is wrong only keeps the status quo as it is. They are ALL wrong and no one wants to admit it.
Dec 28, 2012 at 8:11 p.m.
Suggest removal
Funny to me Eagle how you try and act as if you are blaming both parties, yet all I see in all of our posts is criticism of Obama, the left, democrat party and environmentalists including Al Gore. If you are going to talk the talk, then walk the walk.
I feel like Gandalf, looking for REAL solutions to helpthis nation not barfing out talking points. When I hear this "get government out of the way" trash it makes me want to puke. As if we can just eliminate government regulation in the "free-market" and that is some mythical pathway to economic prosperity. I see talking points flowing from everyone, and NOTHING in the way of solutions. Eagle your solution is just let the free markets take over? Then where is your criticism of billions of free tax dollars being handed over to some the most profitable industries on Earth? Unfettered free-markets is probably the biggest reason the conomy and global markets nearly imploded in 2007-2008, do you really want to go back to those days? No thanks. It seems all the right wing in this country wants to talk about is spending decreases in education and the social safety net(entitlement spending), but seems to think that our military budget is small? We could cut half our military budget tomorrow and still outspend every other nation on Earth easily. So if you want spending cuts, lets put it all on the table, not just the sacred cows of the left, lets put them out there for the right too.
Lets legalize certain substances, tax them. Lets tax churches, lets cut spending, ALL SPENDING. Remember we live in a society where republicans want to continue to spend more oney on the military than on Health care and education. Is that a civilized society?
So if you wish to have an honest discussion about ideology, lets do it. I can criticize democrats all day long, on many positions. I findmyself agreeing with them moreso on social issues than the Repubs. The older I get the more I see the world for what it is as a whole, not for what I think it should be. What I see in most conservatives are people that are content on judgng people and telling them how they percieve them to be, instead of understanding the complexities and dynamics of a society of 300 plus people. Its the "get up and go get a job" crowd.
Dec 28, 2012 at 3:57 p.m.
Suggest removal
BTW congrats on avoiding any of the points I made earlier and just using typical partisan platitudes and talking points, another sign you are not quite as non-partisan as you like to proclaim.
Dec 28, 2012 at 3:56 p.m.
Suggest removal
Gandalf, I judge for my own evaluation of credibility as do you and everyone else on the planet, no God needed, I guess I will be on the watch to see when you actually criticize Obama or anyone else in the Democrat party and then you can use the term non-partisan. Hey I think you could use that as a New Years resolution, dropping the blinders will set you free. I will agree with you on the tea party, they started out as a genuine grass roots effort for smaller government, not unlike the Libertarians, however they were hijacked by the GOP, shamelessly I might add for their own power. This is similar to the environmental movement which was a passionate movement that had noble goals and was hijacked by people like Al Gore for their own gain. Sad when that happens.
Dec 28, 2012 at 3:08 p.m.
Suggest removal
Gandalf, sadly you lost all credibility on your last sentence, its ok just admit who you are it makes life alot easier.
Dec 28, 2012 at 1:46 p.m.
Suggest removal
One last question, we are trying to avoid a fiscal cliff which raises taxes on everyone correct? What rate does that revert back to? Never mind I can answer it myself the Clinton rates passed by a Democratic congress, now do you think your party is as guiltless as the GOP for this situation?
Dec 28, 2012 at 1:32 p.m.
Suggest removal
Obama and the Fed are creating a worse scenario than the fiscal cliff buy inventing money (the GOP lets them) which will devalue the dollar and skyrocket inflation, which is great news to anyone that owns gold. there has not been a budget passed by your democrat senate in 4 years. The GOP stinks no doubt but for the dems to just use the same lame excuse that the GOP is obstructing their progress is pathetic, Obamacare got passed so spare me the crying. Face it none of these clowns Dems or Republicans know what they are doing because government has gotten so out of control, sadly there are enough people that blindly follow each party and refuse to see the blatantly obvious truth.
Dec 28, 2012 at 1:29 p.m.
Suggest removal
Gandalf and west I am really sorry your loyalty to a party is so deep you cannot see the truth that both parties have put us here. Let's raise taxes and see how the economy does when there is no artificial industry that can carry the economy like the dotcom of the 90's. Even Obama knows the economy cannot survive a massive tax increase, otherwise he wouldn't be arguing for the currents rates to stay for the majority of americans. Step away from the partisan talking points just as the GOP nuts do, you will have a much better day, trust me.
Dec 28, 2012 at 1:27 p.m.
Suggest removal
Yep. The rich crash it, then they make the little people pick up the pieces.
Dec 28, 2012 at 1:26 p.m.
Suggest removal
Bush's tax breaks for the rich sure didn't keep us in the black, did they? Remember the crash of 2008?
Dec 28, 2012 at 10 a.m.
Suggest removal
Actually, Eagle1, there is no definitive proof any of those "great ideas" work. These are all right wing talking points. The fiscal cliff fiasco is a reflection of Boehner and the gerrymandered districts that the far right Republicans have created.
We're already developing more American energy than at any point in history. However climate change is happening, though the righties put their head in the sand and think supply side Jesus is there to help them against the eco-fascist lefties.
There is no regulatory assault on business. We have far less restrictions than other countries that are successful.
The Republicans are as much to blame for debt as the Democrats. We don't live in a gold standard world, and Ron Paul is not President.
When I see the "job creators" buzz words, you know where this drivel comes from.
Dec 28, 2012 at 9:52 a.m.
Suggest removal
Just another far right lobby......
Dec 28, 2012 at 9:31 a.m.
Suggest removal
woody....details please on the left's solutions to growing the economy other than higher taxes and hiring more govt workers.
Dec 28, 2012 at 8:50 a.m.
Suggest removal
Yes same old stuff, which are all great ideas that will and have worked, unfortunately there is no party in DC that actually does any of the above things.
Dec 28, 2012 at 8:39 a.m.
Suggest removal
Same old stuff from the right. yawn
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.