Next week, a bipartisan group of Members will unveil the JOBS (Jumpstart Our Business Startups) Act, a package designed to jumpstart our economy by restoring opportunities for America’s primary job creators – small businesses and entrepreneurs – to access capital, expand, hire and go public. The JOBS Act has broad support not just in Washington, but from entrepreneurs and successful members of the business community, like Steve Case, former Chair and Founder of AOL and a member of the President’s Council on Jobs and Economic Competitiveness who paved the way for the nation’s first-ever technology IPO.
Yesterday, Case urged Congress to make entrepreneurship a priority and to remove the barriers preventing the growth of startups, saying “Now is the time for everybody to step up…It’s time to recognize the importance of getting something done.” House Republicans couldn’t agree more. The JOBS Act provide real solutions to remove the biggest obstacles hindering small businesses and entrepreneurs, and paves the way for more startups, innovation, job creation and growth.
Today In History: In 1803, the Supreme Court, led by Chief Justice John Marshall, decided the landmark case of Marbury versus Madison and confirms the legal principle of judicial review--the ability of the Supreme Court to limit Congressional power by declaring legislation unconstitutional.
Birthdays: Admiral Chester W. Nimitz, Edward James Olmos, Billy Zane, Kristin Davis, and Sen. Joe Lieberman
Here is what’s in today’s Ledger …
State Of Play: GOP House Marks Week Of The Entrepreneur By Announcing Bipartisan JOBS Act
Small Biz Committee Chair Sam Graves: House Republicans Act To Jumpstart America’s Engine Of Job Creation – Small Business. Sadly, entrepreneurship is at a 17-year low. Since 2007, we've seen a 23 percent drop in new-business creation, according to the Bureau of Labor Statistics. Moreover, an October release of the annual World Bank's Doing Business report found that the United States fell to No. 13 for ease of starting a business, down from third in 2007. There is no question that America's small businesses are the engines of job creation, considering they employ just over half of the country's private sector work force and create more than half of the nonfarm private gross domestic product. So, with an unemployment rate above 8 percent, we need policies from Washington that will spur small-business growth. The Washington Examiner
• Cantor, House GOP Prepare To Bring Strong Bipartisan, Pro-Growth Legislation To The Floor In The Form Of The JOBS Act and A 20% Tax Cut For Small Business. To build a stronger economic recovery, we should end any threats of tax increases, address our debt crisis by restoring fiscal discipline, pull back on unnecessary federal regulations, and remove barriers to starting businesses. This is why House Majority Leader Eric Cantor announced several measures this week that will do just that. Although the House has passed nearly 30 jobs bills that sit idle in the Senate, we will not stop pursuing a pro-growth agenda. Within the next several weeks, the House will bring to the floor the Jumpstart Our Business Startups Act (JOBS). This legislation is a package of bipartisan measures that have been recommended by the President's Jobs Council. The JOBS Act will afford access to more financing for small businesses and address some of the regulatory burdens that small businesses face. … In addition to bringing the JOBS Act to the floor, the House will pursue legislation that will allow companies with 500 or fewer employees to take a deduction equal to 20 percent of their income before paying the standard tax rates on the remainder. The deduction would also be available to firms that file as individuals, as most small companies do. The Washington Examiner
Steve Case: The Cost and Regulatory Hassle Imposed On Small Businesses Going Public Has A Negative Impact On Job Creation. Later, Case, who co-founded America Online (the first technology IPO), urged lawmakers to reduce the regulatory costs of going public in an effort to help more firms jump into the markets more quickly, which has traditionally proven healthy for the overall economy. “The cost and hassle of going public has resulted in companies going public later or often being sold and never going public, which is a problem because most of the job creation comes after companies go public,” he said. The Washington Post
• The Latest Bipartisan Pro-Growth Proposal Reduces The Regulatory Burdens Facing Small Businesses During The IPO Process. For example, one significant roadblock to business growth is the initial public offering process. Increased regulation makes IPOs more costly, as the average cost to go public is about $2.5 million, and annual cost to stay public is $1.5 million. To address these challenges, the JOBS Act will reduce the cost of going public for companies by phasing in certain Securities and Exchange Commission regulations over a five-year period. This temporary reprieve will allow smaller firms to go public sooner, which directly leads to more job creation within the company. The JOBS Act will also remove a regulatory ban that prevents small businesses from using advertisements to solicit investors. The bill would also eliminate SEC restrictions that prevent "crowdfunding" so entrepreneurs can raise equity capital from a large pool of small investors. The Washington Examiner
Obamanomics: More Fuzzy Math From The Obama Administration Regarding The Stimulus
WSJ Finds MAJOR Errors In President Obama’s Job Tallies – $10 Billion Stimulus Funds For Renewable Energy Result In Shuttered Plants; Few Jobs. The President's Council of Economic Advisers said overall stimulus spending created between 2.2 million and 4.2 million jobs as of the second quarter of 2011. Some jobs, such as construction work, were temporary. …. On federal applications, companies said they created more than 100,000 direct jobs at 1603-funded projects. But a Wall Street Journal investigation found evidence of far fewer. Some plants laid off workers. Others closed…..Jobs figures reported by grant recipients were full of errors, the Congressional Research Service said in a report last year: "Thus it is recommended that any job creation estimate be viewed with skepticism." … The report also addressed a broader issue. "The potential for job creation has become a key factor in evaluating renewable energy investment incentives and programs," it wrote. Yet "quantifying and measuring green job creation and growth has been difficult." … The 1603 program gave $10.7 billion to 5,098 businesses for 31,540 projects, according to the Treasury Department. Recipients were generally reimbursed 30% of their costs after projects were finished. Those businesses claimed on federal applications that they created 102,883 jobs directly. But the Journal found evidence of far fewer. About 40% of the funding, $4.3 billion, went to 36 wind farms. During the peak of construction, they employed an average of 200 workers apiece—a total of roughly 7,200 jobs. The Wall Street Journal
• CBO Reports That The Cost Of President Obama’s Failed Stimulus Has Increased By Another $10 Billion To $831 Billion
The Road Ahead: The President’s Lack Of An Energy Strategy Forces Frustrated Americans To Pay The “Obama Premium” At The Pump
CARNEY WATCH – NOT SO FAST JAY: “ …The Reality Is That Most Of The Increase In U.S. and Gas Production Has Come Despite The Obama Administration.” As for domestic energy, Mr. Obama rightly points to the rising share of U.S. oil consumption now produced at home. But this trend began in the late Bush Administration, which opened up large new areas on and offshore for oil and gas drilling that are now coming on stream. Mr. Obama sneered at expanded drilling as a candidate in 2008 and for most of his term has done little to expand it. In early 2010, he proposed to open some new areas to drilling but shut that down after the Gulf oil spill. According to the Greater New Orleans Gulf Permits Index for January 31, over the previous three months the feds issued an average of three deep-water drilling permits a month compared to the historical average of seven. Over the same three months, the feds approved an average of 4.7 shallow-water permits a month, compared to the historical average of 14.7. Approval of an offshore drilling plan now takes 92 days, 31 more than the historical average. And so far in 2012, an average of 23% of all drilling plans have been approved, compared to the average of 73.4%. Oh, and don't forget the Keystone XL pipeline, which would have increased the delivery of oil from Canada and North Dakota's Bakken Shale to Gulf Coast refineries, replacing oil from Venezuela. The reality is that most of the increase in U.S. oil and gas production has come despite the Obama Administration. The Wall Street Journal
Chairman Hastings: The President’s Failed Energy Policies Are Causing Americans To Pay The “Obama Premium” At The Pump. American families and small businesses are once again suffering from rapidly rising gasoline prices and the Obama Administration’s policies are making it worse. Since President Obama took office, the price of gasoline has increased a staggering 95 percent. As the American people pay for the Obama Premium at the pump, President Obama’s answer is to cancel onshore oil and natural gas leases, close off the vast majority of our offshore areas to new drilling, block the Keystone XL pipeline, delay and block the development of oil shale, and impose ocean zoning regulations that could limit all types of energy production – including renewable. All of these actions by the Obama Administration contribute to less American energy production and higher energy prices. Press Release
• 66% Of All Americans, 66% Of Independents – PEW Poll Shows “Strong Support” For Building The Keystone Pipeline. New polling data shows strong support for approving the Keystone XL oil sands pipeline that the Obama administration rejected in January, a decision that unleashed a torrent of GOP attacks against President Obama. The Pew Research Center poll released Thursday finds 66 percent who have heard about the issue say the proposed pipeline to bring oil sands from Alberta to Gulf Coast refineries should be approved, while 23 percent say it shouldn’t. … Among Republicans who have heard about the pipeline issue, 84 percent back it, compared to 49 percent of Democrats (the poll also shows that fewer Democrats than Republicans are familiar with Keystone). Sixty-six percent of independent voters back approval of Keystone … Republicans have blasted the administration’s rejection of TransCanada Corp.’s permit, alleging that Obama is missing a chance to improve U.S. energy security and create jobs. The Hill
Chief Deputy Whip Peter Roskam: President Obama’s Continued Practice Of Picking Winners and Losers Doesn’t Help Our Economy. "While some of the president's proposal moves in the right direction, perverting the tax code further with more loopholes to help allies - picking more political winners and losers - won't help our economy a bit," Rep. Peter Roskam, the chief deputy whip, told The Washington Times. The Washington Times
• Even The Sectors President Obama Picked As “Winners” Aren’t Getting Behind His Tax Proposal. Even business sectors that would gain an advantage from President Obama’s corporate tax overhaul have given a cool reaction to his proposal. The poor reviews from groups that might be described as winners under the plan underscores the challenge the administration faces. Technology companies say the administration’s plan is flawed because it is too cautious in revamping a code that will leave some companies better off. … Manufacturers enjoy a lower effective tax rate and new breaks from the Obama plan, but they aren’t giving the White House a standing ovation either. “You have to look at the whole plan on balance,” said Dorothy Coleman, vice president of tax and domestic economic policy at the National Association of Manufacturers. “There are good things, but if they are outweighed by bad things, it's hard to get behind it.” The Hill