The debt crisis is preventing economic growth in America. Our national debt is more than $14 trillion and we borrow 40 cents of every dollar we spend. The failed policies of the Obama Administration have aggravated the debt and deficit situation, and we now face the debate over increasing the debt limit. This week the Biden-led bipartisan debt limit negotiations will continue, and Republicans have made clear that cuts must be real and significant, and we won't raise taxes. As Leader Cantor puts it in Barron's this morning, "what we're trying to do is signal that we are going to change the way spending is done in Washington, D.C."
In contrast, House and Senate Democrats continue to call for raising taxes on the very small businesses that we're counting on to grow and create jobs. As economist Michael Boskin points out, “Higher taxes more often led to recession.” House Republicans will not vote for any increase in taxes, and an increase in the debt limit must also achieve real reforms and real reductions to provide the confidence for American businesses to create jobs and get people back to work.
Today In History: In 1782, Congress adopts the Great Seal of the United States after six years of discussion.
Birthdays: Nicole Kidman, John Goodman, Lionel Richie, and Martin Landau
Here is what’s in today’s Ledger ...
State Of Play: Republicans Are Committed To Producing Real Results, Everything Remains On The Table Except For Tax Increases
Leader Cantor: Republicans Are Working To Produce Real Savings and Real Reforms. "What we're trying to do is signal that we are going to change the way spending is done in Washington, D.C.," Cantor told me. ... He expects serious reform of some of the "big drivers of the deficits," mainly Medicare and Medicaid. He also hopes that the deal includes "enforcement mechanisms" that will prevent irresponsible spending in the future. "It's important to produce real savings and real reform," he says. "I think it will happen. We are going to fight hard to assure there's no trickery and no kicking the can down the road. We're about making tough decisions. We want to show the people who sent us here that things have changed." Barron’s
- Cantor: Tax Hikes Remain Off The Table "Tax hikes have been a red line in these meetings for me," said Cantor, a cordial man whose Richmond, Va., roots are evidenced by his mellow Southern accent. "Everything is on the table, except for an increase in taxes." Barron’s
Pro-Growth: Allowing Companies To Bring Back Profits From Overseas Will Boost Domestic Investment, Job Creation
Repatriation Means Jobs ... Up To 450,000 Of Them. “For every billion dollars that we invest, that creates 15,000 to 20,000 jobs either directly or indirectly,” Jim Rogers, the chief of Duke Energy, said at the conference. Duke has $1.3 billion in profits overseas. ... The WIN America coalition, a multimillion-dollar campaign underwritten by dozens of global businesses, counters that many companies like Cisco Systems, Adobe and Qualcomm used some of the repatriated money to hire thousands of workers. The group says another tax holiday would bring even more jobs now. Doug Thornell, an adviser to WIN America, cites a 2008 study commissioned by the corporations suggesting that it could spur 450,000 new jobs. “This is about creating jobs, expanding U.S. businesses and strengthening American companies,” said Representative Kevin Brady, a Republican from Texas, who has introduced such a bill. The New York Times
- Repatriation Would Boost Economic Growth. America has the second-highest corporate tax rate in the world. Our tax system has a strong disincentive to U.S. businesses that want to bring their foreign earnings to America by incrementally taxing these profits ¬— after those businesses have already paid their fair share of taxes to the country in which the earnings were generated. We need Congressional action now to unlock this cash so it can be put to work here at home to spur our economic recovery. The current system, and the folly it encourages, leaves U.S. global businesses with three bad choices: bring the money home and endure exorbitant taxes; leave it in foreign banks; or continue to reinvest offshore profits offshore. Roll Call
Cantor: The Democrat Approach Has Proven That Expanding Government Does Not Produce Economic Growth. The Democrats continue to believe they can promote job growth by expanding government, says Cantor. "We've been at that for over two years and it hasn't worked," he says. "We're saying, 'Let's try another way.' "Any growth plan will involve tax reform, but that is more likely to occur outside of the debt-ceiling talks, says Cantor. Barron’s
Economic Outlook: Top Senate Dem Admits Democrats Have Not Focused On Jobs.
Schumer Admits Democrats Have Not Focused On Jobs: Sunday morning, New York Sen. Chuck Schumer (D) argued that Congress should not let the talks on cutting the deficit distract attention from the need to create more jobs and argued for increased infrastructure investment to tackle the high unemployment rate. “Deficit reduction is necessary but not sufficient,” Schumer said on CBS' "Face the Nation." “There hasn't been enough focus on jobs and job creation.” The Hill
- WaPo: The NLRB’s Claim Goes Too Far, Undermines Business Decisions and Hurts Growth. The allegation that the company “transferred” jobs out of state is unconvincing because the jobs in South Carolina are new. The company has not cut jobs in Washington, nor has it demoted or slashed the wages of union workers. Boeing has added about 3,000 — albeit temporary — jobs in Washington since it announced its South Carolina plans and says it is likely to add more to keep up with demand for its commercial airliners. Employers who engage in unfair labor practices should be penalized. But the NLRB’s move goes too far and would undermine a company’s ability to consider all legitimate factors — including potential work disruptions — when making plans. It also substitutes the government’s judgment for that of the company. This is neither good law nor good business. The Washington Post
High Gas Prices Strain Small Businesses – Where Is The Democrats’ Plan To Provide Relief At The Pump? In a recent Wall Street Journal/NBC News poll, 69% of respondents said they had been affected "a great deal" or "quite a bit" by an increase in gas prices this year, compared with 55% hit by a jump in food prices, 28% by an increase in the unemployment rate and 22% by a rise in the number of home foreclosures. ... Rich Froid, a piano tuner in Kearney, Neb., who drives as much as 150 miles a day, increased his prices about 8% to help offset his higher gasoline costs. "I'm not making any more money," said Mr. Froid, who hasn't lost business with the increase. "It's just a bad deal for my customers." ... Scott Zimanek, who buys gas for the truck, mowers and trimmers he uses in his lawn-care business in Davenport, Iowa, said his expenditures for gas in May were 30% higher than a year ago. ... Patricia Harris, a home-health-care worker in Salem, Ill., drives as much as 1,000 miles every two weeks to care for five elderly and disabled clients. Ms. Harris, who earns $10.10 an hour, spends about $120 every two weeks on gas, up from $50 a year ago The Wall Street Journal
ObamaCare Update: 2 Staples Of ObamaCare Continue To Draw Major Opposition
Top Physician Groups and Over 90% Of The AMA, Will Not Participate In The “Crown Jewel of Cost-Saving Reform” Of ObamaCare Citing The Regulation and Requirements Are Too Burdensome. The Obama Administration is handing out waivers far and wide for its health-care bill, but behind the scenes the bureaucracy is grinding ahead writing new regulations. The latest example is the rule for Accountable Care Organizations that are supposed to be the crown jewel of cost-saving reform. One problem: The draft rule is so awful that even the models for it say they won't participate. ... The American Medical Group Association, a trade association of multispeciality practice groups and other integrated providers, calls the rule recently drafted by the Department of Health and Human Services "overly prescriptive, operationally burdensome, and the incentives are too difficult to achieve." In a survey of its members, 93% said they won't enroll. ... The Administration wrote its rule based on an ACO pilot program that started in 2005 among 10 high-performing physician groups, including Geisinger Health System and Dartmouth-Hitchcock. All 10 say they have "serious reservations" about the new rule and that without major revisions "we will be unable to participate." In other words, the providers that are already closest to being an ACO have rejected the Administration's handiwork. The Wall Street Journal
- Rep. Roe: President Obama’s IPAB Will Lead To Lower Quality, Rationed Care. With Medicare’s worsening outlook, President Barack Obama is now trying to double down on his health care plan — and allow the board to ration even more care. The IPAB ... shifts health care decision-making power away from the patient. It’s devised to operate without transparency or accountability, bypassing all congressional oversight. It places the focus on slashing Medicare costs, rather than on improving the quality of care. Under the IPAB, 15 unelected bureaucrats decide what constitutes “necessary care.” The IPAB is likely to create a “one size fits all” solution when it comes to medical care. As a physician, I can tell you firsthand how dangerous this can be. ... The IPAB would effectively eliminate Congress’ ability to work with Centers for Medicare and Medicaid Services to create and implement demonstration and pilot projects designed to evaluate new and advanced polices — like home care for the elderly, less invasive surgical procedures, collaborative efforts between hospitals and physicians and programs designed to eliminate fraud and abuse. Politico
Off The Beaten Path
U.S. Soldier “Re-Grows” Leg After Pioneering Injection Of Pig Bladder Hormone – Daily Mail
6 Foot Python Found Near KFC Dumpster – KABC
The Latest Beer Summit