Today’s report from the ADP shows the private sector added only 38,000 jobs last month, the latest signal of a sluggish economy. This comes on the heels of a growing number of forecasters downgrading their second-quarter growth predictions. It is clear that our economy needs a pro-growth injection, which is why last week House Republicans offered a robust plan to ensure businesses, large and small, can innovate, expand and begin hiring again. Meanwhile, neither President Obama nor Congressional Democrats have offered any sort of growth plan, and in fact keep insisting on raising taxes, which will further slow the economy. The failure of the Democrat party to lead – across the three branches of government – has been stunning, and this morning at the White House, the contrast could not be more clear. House Republicans have offered a plan to cut spending and get Washington’s fiscal house in order, Democrats have not. House Republicans have offered a plan to save Medicare and ensure that the safety net exists beyond the next decade, Democrats have not. Finally, House Republicans have offered a plan spur economic growth and create jobs, Democrats have not.
Democrats don’t have to like Republican solutions, but it is their obligation to offer solutions of their own – but they have yet to figure out that neither lofty speeches nor false demagoguery is a plan to move America forward.
Today In History: In 1980, CNN (Cable News Network), the world's first 24-hour television news network, makes its debut. The network signed on at 6 p.m. EST from its headquarters in Atlanta, Georgia, with a lead story about the attempted assassination of civil rights leader Vernon Jordan.
Birthdays: Justice John Marshall Harlan, Andy Griffith, Morgan Freeman, Alanis Morissette, Ron Wood, Paul Coffey, Heidi Klum, Justine Henin, Marilyn Monroe and Tony Snow
Here is what’s in today’s Ledger ...
State Of Play: House GOP Heads To White House To Stress The Need For Spending Cuts To Be Tied To The Debt Limit
Speaker Boehner, 150 Economists: Spending Cuts Must Be Equal Or Exceed The Amount The Debt Limit Increase. In advance of a White House meeting with President Obama, Speaker John A. Boehner on Wednesday issued a statement signed by 150 economists backing House Republicans in rejecting an increase in the federal debt limit without corresponding spending cuts. “An increase in the national debt limit that is not accompanied by significant spending cuts and budget reforms to address our government’s spending addiction will harm private-sector job creation in America,” said the statement to be made public by the speaker. “It is critical that any debt limit legislation enacted by Congress include spending cuts and reforms that are greater than the accompanying increase in debt authority being granted to the president.” ... “Increasing the debt ceiling without significant spending cuts and budget reforms will send a message to American job creators that we still are not serious about ending Washington’s spending addiction, and this will bring further harm to private-sector job growth in America,” Mr. Boehner said. The New York Times
House Rejects WH, Dem Demanded Vote On Clean Debt Limit Increase. The House rejected, by a resounding margin — 318 to 97 — the Obama administration’s request for a “clean” $2 trillion increase to the federal debt limit, currently set at $14.3 trillion. Republicans were united against the measure, voting 236 to 0 against, while Democrats were split down the middle, 97 to 82 in favor, with seven voting “present. National Review
Pro-Growth: Reforming The Tax Code Is Critical To Economic Growth
Why The Nation Needs A Pro-Growth Plan: ADP - Only 38,000 Private Sector Jobs Added Last Month. Private businesses barely added jobs in May as large companies cut workers, according to a report released Wednesday. The news is sure to raise further fears about the second-quarter U.S. economy. Private-sector jobs in the U.S. rose by just 38,000 last month, according to a national employment report published by payroll giant Automatic Data Processing Inc. and consultancy Macroeconomic Advisers. Economists surveyed by Dow Jones Newswires had expected ADP to report a much larger job gain of 190,000 last month. The April data were revised to show a rise of 177,000 versus 179,000 first reported. The ADP report said the deceleration, while disappointing, was not entirely surprising given weak growth in the U.S. economy so far this year. Real gross domestic product grew only 1.8% in the first quarter. The Wall Street Journal
Effective Tax Reform Must Be Implemented To Strengthen Economic Growth. The World Bank ranks the United States tax climate as third worst in the industrialized world for incorporation when considering the effective rates. A study conducted with an AEI colleague puts the U.S. tax climate at second worst for locating investments in plants and machinery. A 2010 paper by tax experts Markle and Shackelford also concludes that over the period 1988 to 2007, U.S. multinationals faced the highest effective average tax rates after Japanese firms. The international tax literature has consistently shown that countries compete over effective tax rates for mobile capital. Capital flows from high-tax to low-tax jurisdictions. So, high effective tax rates in the United States drive investments away to countries with lower rates and more generous allowances, deductions, and exemptions. Hence it is no surprise that corporate tax revenues in the U.S. are amongst the lowest in the OECD. ... A reform that leaves effective rates unchanged will do little to improve the competitiveness of the United States as a location for investment and incorporation. If economic growth is a goal, and it should be, then tax reform ought to lower effective tax rates. ... The United States has not cut its corporate tax rates since 1993 and has been left behind while the rest of the developed world races to cut rates and attract investment. To promote economic growth, help workers and increase revenues, we need an "effective" tax reform sooner rather than later. Real Clear Markets
The Economic Outlook: Where Is The Democrats’ Plan For Medicare? Where Is The Senate Democrats’ Budget?
Where Is The Democrats’ Plan To Prevent Medicare From Going Bankrupt? Where Is Their Budget? “If Democrats were offering a competing plan of their own to achieve needed savings there would be nothing wrong with attacking the Ryan plan,” Hume continued. “But the Democrats have no plan of their own. They point to last year’s health care reform and its proposed cuts in Medicare but those cuts are used to finance the new ObamaCare entitlement. No savings there. Indeed, the Democrats are refusing to even pass a budget, despite the law’s requirement that they do so.” ... This is remarkably cynical, even by the primitive standards of contemporary Washington,” Hume said. “Reporters who cover this town know this. They know entitlement spending is out of control and must be restrained. They know the Republicans are trying. And they can see Democrats are not. But will they call them out as they surely would the Republicans if the roles were reversed? So far, it hasn’t happened, but one can hope.” The Daily Caller
762 Days and Counting: Where Is The Senate Democrats’ Budget? The Senate is supposed to be in Memorial Day recess this week. But the chamber is so ungovernable that Majority Leader Harry Reid doesn’t even have the votes to declare a recess. So he decided instead to have a few “pro forma” sessions, such as Tuesday’s, allowing senators to take a vacation without voting for it. ... Although there’s general agreement that the most pressing issue facing the federal government is its runaway finances, the Democrat-controlled Senate hasn’t passed a budget in 762 days, a new standard for dereliction of duty. ... Since passage of the Congressional Budget Act of 1974, Congress has failed to pass a budget resolution only five times, and until last year, a budget resolution always passed at least one chamber. Now, for the first time in a decade, the Senate Budget Committee isn’t even considering a budget. The Washington Post
WaPo Fact Check: DNC Chair Debbie Wasserman Schultz Engages In Fallacies and Scaremongering, Not Reality. Wasserman Schultz did not say voucher, but her statement suggests that people would be handed a check (“X number of dollars”) and then have to go out and find a plan that they can afford. She also said the plan would “allow insurance companies to deny you coverage and drop you for pre-existing conditions.” Neither of those claims are true. The system as envisioned by Republicans would operate much like the Medicare prescription drug plan currently does. The government would not give people a check or anything like that; the government would handle the funds, just as they do under the drug plan. As the nonpartisan Congressional Budget Office said when it examined the plan, “The premium support payments would go directly from the government to the plans that people selected.”... Wasserman Schultz is jumping to conclusions — not to mention scaremongering metaphors — to describe provisions in the GOP Medicare plan that just do not exist. The Washington Post
Getting To Know The Freshmen
Mike Kelly: Rep. Mike Kelly represents Pennsylvania's third district. He attended the University of Notre Dame on a football and academic scholarship and was a defensive tackle for the Irish until a knee injury ended his college football career. He has four kids and four grandkids. Rep. Kelly owns a Cadillac/Chevy/Hyundai/Kia dealership and served as secretary and treasurer of the Hyundai initiative “Hope on Wheels,” which has donated over $14 million to childhood cancer research institutions nationwide. Little known fact: Rep. Kelly enjoys karaoke. (Courtesy of the Whip’s Office)
Off The Beaten Path
Even Superheroes Need A Break – The Wall Street Journal
Not The Hat Trick People Brag About – The San Francisco Chronicle
Today, the House will meet at 10:00 a.m. for morning hour and 12:00 p.m. for legislative business. First votes expected: 1:00 - 2:00 p.m. Last votes expected: 6:00- 7:00 p.m.