The Leader's Ledger

Posted by Brian Patrick on

Good morning,

People in America know that jobs do not come from decisions made in Washington. Jobs come from the decision of entrepreneurs and investors to take a risk, pool capital and create new businesses. Today, President Obama will sign the bipartisan JOBS Act into law, empowering entrepreneurs, small businessmen and women to get new ideas off the ground, grow their businesses, and create jobs. The JOBS Act represents a victory for the economy and job creation in this country. Republicans and Democrats need to continue working together on bipartisan solutions to get the economy going again. In the coming weeks the House will vote on the Small Business Tax Cut Act to give small business owners more opportunity to grow and create jobs. As Leader Cantor said yesterday, "We want small-business people to have more money go to their pockets, not the government's, and then they have more money to make decisions about hiring, about retaining jobs and about creating more jobs.”

Today In History: In 1792, then President George Washington exercised the first presidential veto. The bill introduced a new plan for dividing seats in the House of Representatives that would have increased the amount of seats for northern states. After consulting with his politically divided and contentious cabinet, Washington, ultimately decided that the plan was unconstitutional because it would have introduced a number of representatives higher than that proscribed by the Constitution. Washington exercised his veto power only one other time during his two terms in office. In February 1797, the former commanding general of the Continental Army vetoed an act that would have reduced the number of cavalry units in the army.

Birthdays: Colin Powell, Krista Allen, Booker T. Washington, Christopher “Kid” Reid, Spencer Tracy and Gregory Peck

Here is what’s in today’s Ledger …

State Of Play: Today President Obama Will Sign The Bipartisan JOBS Act Into Law

NRO Writes the JOBS Act Will Help Create Jobs, Without Costing Taxpayers A Dime. In truth, the JOBS Act, which President Obama is set to sign today, is neither meager nor radical. It will reduce some significant regulatory barriers to job creation, most notably the accounting mandates of the Sarbanes-Oxley Act of 2002. The IPO Task Force — an Obama-coordinated gathering of entrepreneurs, investors, and academics — found that the regulation-induced decline in the number of U.S. initial public offerings over the last decade may have cost the economy as many as 22 million jobs…. this bill, which does not spend a dime of taxpayer money, will do more to create jobs — by getting out of the way and letting the private sector create jobs — than most every so-called stimulus package that Congress has passed over the last few years. The JOBS Act is based on the finding — from the IPO Task Force, and from respected research institutions such as the Kauffman Foundation — that young firms, the “emerging growth” companies responsible for the bulk of American job creation, are being hobbled by loads of red tape from Sarbanes-Oxley and other mandates. National Review

Entrepreneur Says Without A Doubt The JOBS Act Will Help The Current Unemployment Rate. “Simply, the JOBS Act will make funding more accessible for startups by allowing non-accredited investors to participate in the funding rounds, and this alone, I believe will be the main factor driving the increase in new companies being founded. And with new companies comes the need to hire staff. Without a doubt, this will help the current unemployment rate,” said Tanya Prive, founder of Rock The Post, a social networking platform for entrepreneurs to fund and swap resources. Rory Eakin, founder of CircleUp, an equity-based crowdfunding platform focused on established high-growth consumer and retail companies, added: “Currently, less than one percent of U.S. small businesses receive Angel investments. By opening up restrictions around general solicitation and introducing crowdfunding…these investments create up to six jobs per investment.” Forbes

Leader Cantor On JOBS Act Signing: Let’s Focus On Bipartisan Solutions To Boost The Economy and Get Americans Back To Work. "I hope it's that all of us are looking toward driving toward results and looking toward solutions," Mr. Cantor said Sunday about his invitation. "We all know there are plenty of differences between the two sides in Washington." The Washington Times

State Of Play (2): Cantor Remains Focused On Economic Growth, Boosting Small Business Job Creation

Leader Cantor’s Proposal Would Cut The Tax Burden On Small Business By 20%. House Majority Leader Eric Cantor, R-7th, wants to give businesses with fewer than 500 employees a 20 percent tax cut, a proposal slated to come for a vote in the middle of this month. … "We want small-business people to have more money go to their pockets, not the government's, and then they have more money to make decisions about hiring, about retaining jobs and about creating more jobs," Cantor said Wednesday after talking about personal finance matters with students at Hermitage High School in Henrico County. … Cantor's 20 percent tax-cut proposal was introduced on the heels of the Jumpstart Our Business Startups Act, a package of bills that passed the House and Senate. President Barack Obama is scheduled to sign the JOBS Act today at the White House with Cantor in attendance. Richmond Times-Dispatch

Small Business Owner: Congressman Cantor’s 20% Tax Cut Will Allow Me To Rehire Some Of The Employees We Were Forced To Lay Off. The plan is winning support from some area businesspeople, including Puritan Cleaners President Gary Glover. "Anytime we get a little tax break, we can turn that money back around and put it back in the business," he said. Glover would like to expand by a location or two, rehire some of the employees laid off as the economy soured, or "take better care of our existing associates." "It's just a way to have more money to spread over those three areas, and any time you do that, your business becomes stronger and better and you do more business," he said. Richmond Times-Dispatch

What Other Small Business Owners Are Saying …

• “The 20% across the board federal tax cut for small businesses is exactly what is needed to encourage business owners and investors to regain the confidence that the federal government is actually going to stand up for job creators and allow them and their businesses to flourish. This will enable small businesses to be more competitive with their goods and services, and allow a greater opportunity to jumpstart real growth in the private sector and offer a return for such investment. For too long, high taxes coupled with burdensome government regulations have stymied small business growth. This is exactly the type of leadership we need to put more Americans back to work. I hope Congress will adopt this common sense approach at a time when it is needed most.” – Jay Smith, President, Cox Transportation Services, Inc., Ashland, VA

• “I am in full support of the proposed 20% Small Business Tax Cut to help small businesses grow and innovate to provide competitive technologies for the future and create new jobs along the way. It is important to recognize that small businesses are one of the most important vehicles for new ideas and will create competitive advantage within the United States and across the globe. This small business tax cut will allow more funds to be retained by businesses to support the hiring of new employees, invest in research or fund capital equipment. I believe a dynamic, financially strong start-up and small business community is vital to our overall economic success as a nation. These small entities provide many of the new ideas and practical solutions needed to solve the problems relating to health care, energy and information technology, providing a future return on the investment afforded by favorable tax policy. This proposed bill, coupled with initiatives such as the Jumpstart Our Business Startup Act, are meaningful steps in the right direction.” – Paul Rocheleau, Chairman, Virginia Life Sciences Investments, LLC, Richmond, VA

• “Intelliject supports House Majority Leader Eric Cantor’s efforts to reduce the tax burden facing small entrepreneurial businesses. His proposed reduction in taxable income for companies with less than 500 employees would enable Intelliject to accelerate its investments in developing patient-centric pharmaceutical products targeted to meet the needs of patients living with specific medical conditions. Having certainty of this reduced tax burden, we could immediately hire more people and increase both our research and development spending and manufacturing capabilities across the U.S. to bring life-saving products to the world more rapidly. We appreciate the continued efforts of Congressman Cantor to support the interests of growing entrepreneurial companies. If this proposal is successfully enacted, these companies would have additional capital to invest in realizing their business plans, and in our case, we could create more jobs and improve the lives of millions of patients.” – Spencer Williamson, CEO, Intelliject, Inc., Richmond, VA

1600: White House In Damage Control Mode Over President Obama’s SCOTUS Comments

FactCheck Declares President Obama's "Unprecedented" Claim "Absurdly Wrong." President Obama is being forced to modify his absurdly wrong claim that it would be “unprecedented” for the Supreme Court to strike down the new health care law. … As any number of others were quick to point out, there is ample precedent for the Supreme Court voiding laws passed by Congress. In fact, overturning unconstitutional laws has been part of the Supreme Court’s job description for more than two centuries.

ObamaCare Wasn’t Passed By A “Strong Majority” Either … And the health care law wasn’t passed by a “strong” majority, either. In the House, the final vote was 219 to 212, with all Republicans and even 34 Democrats voting in opposition.

A quick glance at the headlines confirms the White House is still reeling from the President’s comments

• White House In Damage Control Over Obama Supreme Court Remarks – Reuters

• White House Still Playing Defense on Barack Obama SCOTUS Remarks -- Roll Call

• DOJ Ordered To Explain Obama's Supreme Court comments – CBS News

• White House Spokesman Recasts Obama's Comments On Possible 'Unprecedented' Health Care Ruling – Huffington Post

Regulatory Row

The Obama EPA Has Made It Clear That President Obama Doesn’t Really Have An “All Of The Above” Energy Strategy. Everyone in Washington including President Obama claims to favor an "all of the above" energy portfolio. As misguided as that is—far better to let markets decide which energy sources to develop—the EPA has now admitted that Mr. Obama doesn't really mean it. Coal is not part of his "all." The Wall Street Journal

The Obama Administration’s Latest Regulation Doesn’t Just Ban New Coal Plants, It Will Shutter Existing Coal Plants As Well. The agency is conceding that coal development has been shut down as a result of its many new regulations, such as the recent mercury rule and the illegal permitting delays that a federal appeals court slapped down last week. But there's also a problem. Because the putative "regulatory impact" is zero, there are also no benefits. So why is the environmental lobby applauding the EPA's new rule like a performing seal? Even the EPA itself says the performance standards will apply only to new plants, not the legacy fleet that generates almost half of U.S. electricity. The media were careful to repeat this claim too. It isn't true. Just as the new rule's fine print reveals that the rules won't apply to the new plants because they'll never be built, it also shows that the rules will put old plants at risk because of another EPA program known as New Source Review. Whenever a plant upgrades—whether installing a new fan blade or replacing the proverbial toilet seat—it must comply with every rule on the books. So as a utility obeys the mercury rule, say, it will also be caught in the pincer movement of these new carbon performance standards. The green lobby knows this will slowly kill even current coal plants over time. The Wall Street Journal

Keeping Tabs

President Obama Attacks The Ryan Budget Without A Long-Term Alternative Of His Own. President Barack Obama has rebuked Republicans for their “radical vision” of a scaled-down government and says it’s time to “get serious about the deficit.” His own budget fails to do that over the long term. White House projections show federal debt as a proportion of gross domestic product growing by more than three-quarters under Obama’s plan to a record 124 percent in 2050, well above the 90 percent danger zone identified by economists Carmen Reinhart and Kenneth Rogoff. And the government’s share of the economy climbs to levels not seen since World War II, largely because of surging spending on health care. … The president’s proposal “is not a long-term solution to our problem,” said former Congressional Budget Office Director Robert Reischauer. “It gets us through what he hopes is his second term, but it doesn’t do much for the second term of his successor.” Bloomberg

Senate Democrats Don’t Even Plan To Pass A Budget This Year. Senate Democrats, for their part, haven’t even put out a proposal of their own: They’ve already announced they have no plans to pass a budget this year, which means Congress will go without a tax-and-spending blueprint for the third consecutive year. Bloomberg

Leader Cantor On President Obama Signing The Bipartisan STOCK Act Into Law: “The President's signing of the bipartisan STOCK Act is an important step toward ensuring that Members of Congress and federal officials don’t profit from insider information and abide by the same rules as everyone else. I thank members on both sides of the aisle, especially Representative Tim Walz and Representative Louise Slaughter, for their hard work on this legislation to restore the trust of the American people. Rather than letting our differences divide us, as so often happens in Washington, this bipartisan bill shows that we can come together and deliver results for the American people." Press Release

GOP Health Care Reforms