The health reform bill is now owned by the administration and congressional democrats. It's provisions and the subsequent national analysis will occupy debate and produce controversey for months to come. This bill's efficacy, function and control of one sixth's of the nation's economy is not the true issue. The real issue is the subject that has been effectively shoved from the American political stage, the jobs debacle. Seventeen million unemployed or underemployed workers, the loss of their income-expertise, hope, vision, and individual loss of self esteem . An administration unwilling to confront this disaster in a direct or substantial way, will now be able to focus on other issues. This makes the Katrina oversight and incompetence look like a minor matter.
For example, currently, between the state of Iowa's tax levy and that of the federal rate, businesses must pay 41.6 percent to government. This type of excessive business taxation has given the U.S. the dubious distinction of being the world's leader in corporate taxes. This "jobs killer" must be dealt with to improve the competitiveness of America. This provides no incentive at all for corporations to retain or create jobs in this country.
Ireland's overall rate on companies is 12.5 percent, Singapore has just introduced a program for start up businesses with the first three years almost tax free, China at 25 percent features special districts minimizing rates even further.
We are in an economic trade war for the jobs provided by our companies. With two hands tied behind our back we passively surrender our American workers pay to other countries by failing to provide our companies with freedom from burdensome tax rates. This must be stopped now and American jobs must come first.
Past proposals, from various members of Congress of a five or ten percent cut on federal taxes will not make a difference for companies in this competition for jobs with foreign countries. We need to take action to bring the jobs back for the 18 million jobless or underemployed workers.
Specifically,
I propose corporate round tables to meet with the new President after the 2012 elections on federal and state tax reductions for businesses, and to establish monthly goals for corporate job restoration-creation in the U.S.
In the interim period between now and then, I would strongly encourage the administration to recognize that the President must make job restoration-creation a 24/7 number one priority. Any current administration program which increases borrowing and deficits and is unnecessary should be immediately curtailed, that also includes healthcare non-essentials.
I propose that the Federal government make initial cuts in the corporate tax rate to 10 or 15 percent prior to state's review of their taxes,
I further propose actuarial studies to determine how increased job growth would through the normal payroll tax, prevent deficit growth due to tax reductions at the federal and state levels.
Recently, the tax foundation stated: "The key to improving America's tax competitiveness is a partnership between federal and state law makers to work toward the common goal of lowering the overall business tax burden in the U.S. Otherwise, America. will continue to fall behind in the global tax race simply by standing still."
In summary, the above plan, albeit simple in thrust, will work if the nation has the resolve to put it into action. We simply cannot wait much longer to start down the path to real economic recovery. Hopefully, many meaningful ideas will be considered in the months ahead, unless the recent jobs summit was merely a manufactured photo opportunity or public relations ploy; if that's the case the employment problem will worsen and the nation could plunge into a full fledged depression, especially in view of the recent comments of Zhu Min, a deputy governor of the People's Bank of China that it is getting harder for governments to buy U.S. treasuries.
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