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Visit James Owens-1128509's column >>

JAMES OWENS-1128509

Journalist and Leukemia Lymphoma Soceity supporter
Articles Posted: 11  Links Seeded: 2
Member Since: 5/2009  Last Seen: 6/07/2011

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GOP squashes small business recovery and stalls job creation

Mon Aug 2, 2010 8:55 AM EDT
elections, jobs, gm, politics, unemployment, small-business, outsourcing, senate-republicans, robert-reich, president-obama, small-business-recovery
By James Owens-1128509
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In July the unemployment rate inched up another one tenth of a percentage point, to 9.5 percent, leaving more Americans out of work. Meanwhile, partisan bickering in the Senate continues as Republicans used parliamentary procedures to block a vote on a small business lending package.

It’s easy to see what’s going on in Washington, but Washington is not seeing clearly what is happening on Main Street, and further, it seems many of them do not care.

In November all 435 House seats are up for grabs along with 37 Senate seats. The Republican Party has one goal, to win back as many seats as they can and control both houses of Congress. Maybe then something could be accomplished for the American people. Maybe then the Party of “No” will support a small business package, alongside an extension of the Bush tax cuts for the wealthy.

The problem with this scenario is the President will veto legislation that includes those tax cuts, and so, nothing will get done. We cannot allow the Republicans to take over Congress and create and even greater stalemate than we already have in Washington.

The House is preparing for a six-week break on Friday. Unless a compromise is reached this week, the vote to shore up small businesses will wait for September, and during that time unemployment will continue to edge upward in most areas.

During a NBC interview the other day at a General Motors auto plant in Michigan, President Obama called Senate Republicans the “just say no crowd,” which is a very fitting definition of what that party has become.

It’s understandable the two sides have a difference of opinion and different philosophies, but because they represent the people they should not stand in the way of progress in an effort to win elections, it’s wrong, no matter what kind of spin you put on it, it’s just wrong.

Both sides like to use numbers and skew statistics to their favor. The Republicans do it by pointing at the deficit and using it as an excuse to block legislation for things like unemployment benefit extensions and small business loan programs.

Obama, himself did it during his NBC interview. The president said GM had created 55,000 new jobs since their financial bailout.

What he left out was the fact that the majority of those jobs were created in China, where GM is building a new $250 million advanced technology center. The Chinese are buying Chevrolets and GM is providing the Chinese with jobs. Back home, jobs are being lost and people cannot afford to purchase new cars.

According to Robert Reich, former secretary of labor under President Clinton, big business will continue to export jobs overseas because labor is cheaper and they have the purchasing power we no longer possess.

“The reality is this: Big American companies may never rehire large numbers of workers. And they won’t even begin to think about hiring until they know American consumers will buy their products. The problem is, American consumers won’t start buying again until they know they have reliable paychecks.”

So if big business will not put Americans back to work again, small businesses must start hiring. For the small business sector to begin hiring again they need to expand, market, advertise and invest, but they cannot do that in our current business climate.

The legislation to help small businesses so they can hire workers is a step in the right direction and it will create jobs. This is an important ingredient in the recipe to put Americans back to work, but if the Republicans have their way nothing will get done, unemployment will continue to rise and short-sighted out-of-work Americans will vote for them; they are counting on their constituents not to see the larger picture.

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  • Public Discussion (19)
Michael Kervin

Incredible! Let's see. The Dem's are prepared to let the Bush tax cuts expire. The Dem's are prepared to tax $250,000 pay earners, which for those not in the know, are the small business owners. The Dems say they need another stimulus. The Dems cry wolf through that whining boy scout Weiner that the Republicans are causing all the problems voting no all the time while Weiner has very rarely, if ever voted against his party. Last but certainly not least, the Dems are building large goverment restricting states for which will soon go bankrupt based on laws guys like tax cheaters Kerry and Rangel support. Yeah right----it's the republicans fault - get off the drugs people and open your eyes, the future of our kids are at stake if CONGRESS continues to be corrupt, ineffective, overly political and certainly incompetent

    Reply#1 - Mon Aug 2, 2010 9:23 AM EDT
    btco

    The Bush tax cuts on the rich need to expire. Tax cuts on the rich do not create jobs.

    Over the next year or two, policymakers could channel the savings from letting the tax cuts expire — about $40 billion in 2011 — to uses that have more "bang for the buck" in creating jobs and promoting growth. For example, Congressional Budget Office (CBO) analysis suggests that using those savings for a combination of a job-creation tax credit and continued state fiscal assistance would generate three times as much additional economic activity as using them to extend the high-income tax cuts.

    Also, tax cuts for businesses do not necessarily create jobs. Increasing the after-tax income of businesses does not create very much incentive for them to hire more workers in order to produce more, because production depends principally on their ability to sell their products.

    And this from the same article I linked above...

    Alan Blinder, a former Federal Reserve Vice Chair and one of the nation's most eminent economists, recently made this point as well. Writing in the Wall Street Journal, Blinder observed:[4]

    Consider three different ways to add a dollar to the budget deficit: increase unemployment benefits by $1, give a $1 tax cut to someone earning $50,000 a year, or give a $1 tax cut to someone earning $5 million a year.

    While the immediate impacts on the budget are identical, the near-term spending impacts are not. The unemployed worker struggling to make ends meet will likely spend the entire dollar right away. The $50,000 earner probably will spend the lion's share of it, saving just a bit —that's what most Americans do. But the $5,000,000 earner probably will save most of the new-found dollar.

    The impacts on economy-wide demand will therefore be quite different. Paying more in unemployment benefits offers the most spending "bang" for the budgetary "buck." Extending the Bush tax cuts for the wealthy offers the least.

    MOST small business owners are NOT in the top 1.6% of income earners, therefore will NOT be impacted by letting the tax cut expire. What you wrote is a lie being spoon fed to you and others.

    The only ones in Congress being ineffective are the GOP. They are hurting real Americans and have been for decades.

    Small businesses need assistance here, both sides agree. Republicans have chosen to make this assistance just another "Waterloo" moment for Obama.

    • 6 votes
    #1.1 - Mon Aug 2, 2010 10:13 AM EDT
    Steve Watts

    The Dem's are prepared to let the Bush tax cuts expire.

    Or, to frame the issue a different way, Republicans favor continuing tax cuts that will add $650 billion to the deficit over the next 10 years, after staunchly refusing to extend unemployment benefits that cost $30 billion because they would add to the deficit.

    • 5 votes
    #1.2 - Mon Aug 2, 2010 10:37 AM EDT
    rick-673281

    "therefore will NOT be impacted by letting the tax cut expire. What you wrote is a lie being spoon fed to you and others."

    Not true either, taxes will go up for all above the 200,000-250,000 per year mark period. So you also twist the BS lies. Then more taxes will go up on them as the HCR kicks in over the next couple of years then some time soon taxes will go up on most Amercians no matter their income levels to help pay off the deficit so many more taxes are on the way but all of you that feel that tingle still like to hide their heads in the all the BS that is "spoon fed" to you.

    • 1 vote
    #1.3 - Mon Aug 2, 2010 11:17 AM EDT
    btco

    Rick, Please feel free to prove the US Census Data wrong. What I stated is the truth. Small businesses DO NOT make up the VAST Majority of the top 1.6% of wage earners in the USA.

    Letting the tax cuts on the top tier of wage earners expire as PLANNED BY REPUBLICANS when they passed the cuts, will therefore NOT impact the majority of small businesses.

    • 4 votes
    #1.4 - Mon Aug 2, 2010 11:39 AM EDT
    StevG-144

    The House is preparing for a six-week break on Friday. Unless a compromise is reached this week, the vote to shore up small businesses will wait for September, and during that time unemployment will continue to edge upward in most areas

    btco, makes some great points. The only plan the republicans have is to stall and block the democrats, from getting anything done, its been that way for a year and a half and they are not going to change now. The only commitment the GOP has made, is to not let the democrats pass any legislation, until after their six week break. You see its not about helping people, its about the GOP trying to get back in power, if they allow the democrats to show that they are getting things done, and trying to help people, they can't claim that the democrats are inept, and only the republicans can save them.

    • 3 votes
    #1.5 - Mon Aug 2, 2010 11:49 AM EDT
    rick-673281

    "Letting the tax cuts on the top tier of wage earners expire as PLANNED BY REPUBLICANS when they passed the cuts, will therefore NOT impact the majority of small businesses."

    Well first I also believe the tax cuts should expire I never did say otherwise. They were not permanent so should be left to expire but if BO gets his way taxes on all in the range of 200-250G a year taxes will go up and all of them are not in the top 2 percent. I am not even saying they shouldnt go up as I am in favor of the Bush tax cuts expiring. I am just pointting out it isnt just the top 1.6 percent that they will go up on. Now yes the more you make, especially above 1 million you get hit harder but always remember all the tax increases that are on the way to hit us all. Like I mentioned before, HCR will be kicking in, some type of taxes to pay off the deficit, and we have already seen some taxes go up like the tanning bed special tax, this affects me none but makes me wonder how they came up with a tax on tanning beds when there is only one group of people who use them. But food for thought when it comes to taxes.

    • 1 vote
    #1.6 - Mon Aug 2, 2010 12:10 PM EDT
    James Owens-1128509

    I certainly would not say it was "all the Republicans fault," but I believe their policies, to a greater extent, got us where we are today. Did you miss the part where I called out Obama on his statement about the jobs being false? Obama may very well be a puppet for the real people in charge, but that only makes him an accessory to the fact, and the fact is, neither party can really be trusted, but the GOP can be trusted least.

    • 1 vote
    #1.7 - Mon Aug 2, 2010 12:48 PM EDT
    Reply
    Frank BlackDeleted
    TheyreAllCrooks

    Giving tax breaks to Warren Buffett and Snoop Dogg is NOT going to spur economic growth or create jobs.

    In fact from 2000-2008 fewer jobs were created in the US than in any period since The Great Depression (US Dept of Labor) - yet these morons on the right want to continue these falied policies.

    Republicans blocked passage of tax cuts for small businesses last week - then they all raced to be first on FOX claiming that Obama isn't creating jobs.

    • 3 votes
    Reply#3 - Mon Aug 2, 2010 12:09 PM EDT
    James Owens-1128509

    My point exactly; they are obstructing progress to make the man in power look powerless.

      #3.1 - Mon Aug 2, 2010 12:50 PM EDT
      Reply
      T is for T-time

      Blaming Replicans is the only thing you have left if your a liberal. It is not a platform for change. It is an excuse for the undermining of the economy by the current administration. If the President and Congress want to create jobs, they should get the hell out of the way and lower taxes on everyone. Taxing a "rich person" does nothing to help out of work people. But we all know it makes liberals feel good about themselves for whatever stupid reason. The federal government spent 100's of billions to "stimulate" the economy and that has failed miserably. To which we now get threads like this one. Brilliant.

        Reply#4 - Mon Aug 2, 2010 12:11 PM EDT
        rick-673281

        "Taxing a "rich person" does nothing to help out of work people. But we all know it makes liberals feel good about themselves for whatever stupid reason"

        This is their way of supporting their tax and spend policy plus it is their way of like BO said redistribution of wealth. They dont have it so they want it.

          #4.1 - Mon Aug 2, 2010 12:46 PM EDT
          James Owens-1128509

          If you don't like the thread, don't read it Einstein.

            #4.2 - Mon Aug 2, 2010 12:53 PM EDT
            Tony-1517948

            If the President and Congress want to create jobs, they should get the hell out of the way and lower taxes on everyone

            Um......isn't that what Obama did? Sure, they weren't huge cuts or tilted cuts, but everyone in the nation that was working received a small tax cut, on the backs of the largest tax cuts (Bush's) in history........unless what I am saying is not true......where are all the jobs??

            "trickle down" economics doesn't work. The theory makes sense, but is utopian. I suggest we replace it with a "carrot-and-stick" approach....at least then you'd get the desired effect.

              #4.3 - Mon Aug 2, 2010 1:28 PM EDT
              James Owens-1128509

              I like the carrot and stick approach, at least that would give me something tangible to chase.

                #4.4 - Tue Aug 3, 2010 2:26 PM EDT
                Reply
                Lukepccpa

                Everybody is focused on letting the Bush tax cuts for the rich expire, like that was all that was in the Bush tax cuts. However, the dirty little secret is that it will cost MUCH MORE to extend the Bush tax cuts for those making less than $250,000 per year.

                Here is a quote from the Center for American Progress entitled "Three Good Reasons to Let the High-End Bush Tax Cuts Disappear This Year".

                In its January report, "The Budget and Economic Outlook: Fiscal Years 2010 to 2020," the CBO projects that a full extension of the Bush tax cuts, plus a permanent fix to the Alternative minimum tax, will cost $3.7 trillion over 10 years, not including debt service costs. The Joint Committee on Tax estimated in a March 2010 report, "Present Law And The President's Fiscal Year 2011 Budget Proposals Related To Selected Individual Income Tax Provisions Scheduled To Expire Under The Sunset Provisions Of The Economic Growth And Tax Relief Reconciliation Act Of 2001," that the cost of extending just those cuts that affect people making less than $250,000 and permanently fixing the alternative minimum tax will cost $3 trillion. The difference—a bit less than $700 billion—is the cost of extending just those cuts for the wealthy.

                This is from Bloomberg Businessweek:

                In theory, it should be easy for Democrats to extend just the middle-income cuts. Budget rules adopted by Congress earlier this year allow lawmakers to extend them without offsetting revenue increases. That's a huge break: Keeping the cuts for the 130 million households earning less than $250,000 will cost about $255 billion a year.

                There is no similar budgetary escape hatch that would let Republicans extend the tax cuts for the wealthy. They must find $55 billion (per year) in revenue to make up for the cost of keeping top marginal rates at 35 percent and dividends and capital gains taxes at 15 percent, among other reductions.

                The Republicans are at least consistent in wanting to extend all of the Bush tax cuts.

                The Democrats wanting to let the tax cuts for the rich expire in the name of "fiscal discipline" is just an election year political ploy if you look at the cost of extending the Bush tax cuts for those making less than $250,000 per year, and the fact the Democrats have written the budget rules to allow deficit spending to extend these tax cuts.

                While the Bush tax cuts may given a bigger benefit to those making more than $250,000 per year on a per person basis, the tax cuts for those making less than $250,000 per year actually cost the government more in overall lost revenues.

                If we really want fiscal discipline, balance the budget, and reduce the deficit, the honest answer is to let ALL of the Bush tax cuts expire.

                  Reply#5 - Mon Aug 2, 2010 12:37 PM EDT
                  James Owens-1128509

                  Debt, debt, debt, this country has been in debt to the world bank since the Depression. Hasn't Bush been awkwardly silent since he left office? Which is not a bad thing I suppose, but he is so much fun to listen to.

                    Reply#6 - Mon Aug 2, 2010 12:56 PM EDT
                    rog-876531

                    We have been had !!

                      Reply#7 - Mon Aug 2, 2010 12:57 PM EDT
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