The Leader's Ledger

Posted by Brian Patrick on

Good morning,

With Tax Day approaching, cash-strapped small businesses are putting their scarce resources towards tax compliance, rather than growth and hiring. As Washington Post writes this morning, “Small business owners don’t often feel like they’re on a level-playing field when they compare their challenges to those of their corporate counterparts. Managing tax liabilities is one clear example.” House Republicans are focused on solutions that will reduce the burdens on small businesses and help them to expand and create jobs again. Next week, the House will vote on Leader Cantor's 20% Small Business Tax Cut that will put money back into the hands of small business owners. At a time when small businesses are projecting a decrease in hiring and growth, our Small Business Tax Cut will make it easier for small businessmen and women to run their businesses, invest capital, grow and create more jobs. Meanwhile, the President continues to push for more tax hikes that will hinder growth and job creation, broadcasting his message in key battleground states today.

Today In History: In 1861, the bloodiest four years in American history begin when Confederate shore batteries under General P.G.T. Beauregard open fire on Union-held Fort Sumter in South Carolina's Charleston Bay signifying the start of the Civil War.

Birthdays: Rep. Tim Walberg, Brooklyn Decker, Andy Garcia, Claire Danes, Nicholas Brendon, Shannen Doherty, Ed O'Neill, Tom Clancy and David Letterman

Here is what’s in today’s Ledger …

State Of Play: President Obama’s Red Herring Economic Policies Don’t Create Jobs and Harm Growth

WaPo Fact Checker: President Obama Is “Misleading” and Skewing President Reagan’s Record On Pro-Growth Tax Policy. … it is misleading for Obama to suggest that Reagan was “pushing for the same concept” — and to label the Buffett Rule the “Reagan Rule”-- when the former president actually barnstormed the country to argue on behalf of a broad-based tax cut that reduced taxes for the wealthy, the middle class and the poor while greatly simplifying the tax system. The Washington Post

Editorial: The Buffett Rule Is Not About Math, Fairness Or Shared Sacrifice – It’s A Cynical Political Ploy. Bloomberg News reported this week that the Buffett Rule would affect only about 400 Americans. It would raise only about $5 billion a year (assuming that those whom it would hit would not dodge it by moving their money overseas). That would fund just 1.4 percent of the total new “stimulus” the President proposed for next year. It would not be noticed in the $977 billion deficit Obama projects for next year. The Buffett Rule is not about math or fairness or shared sacrifice. It is simply a cynical ploy to buy the votes of the ignorant and gullible. The Union Leader

A New Study From Researchers At Cornell Eviscerates President Obama’s Entire Economic Argument. Underlying Obama’s entire thesis is the work of two economists, Thomas Piketty and Emmanuel Saez. According to them, median American incomes rose just 3.2% from 1979 through 2007. … But it’s just not true, according to a new study in National Tax Journal from researchers at Cornell University. (Here’s an earlier, working-paper version.) The academics, led by economist Richard Burkhauser, don’t say the findings of Piketty and Saez are wrong — just incredibly, massively incomplete. According to the Cornell study, median household income – properly measured – rose 36.7%, not 3.2% like Piketty and Saez argue. That’s a big miss. … So the tax and regulatory polices of the past three decades did not lead to stagnation for the middle class at the hands of the rapacious rich. Claims to the contrary — such as those made by Obama, the Occupy movement, and many liberal economists — never really passed the sniff test of anyone who lived through the past few decades. And now we know why: The inequality and stagnation alarmists were wrong. And so, therefore, is the economic rationale of the president’s class-warfare economic policies. Not that economics ever had much to do with them anyway. The American


The Road Ahead: The House Will Vote On Leader Cantor’s 20% Small Business Tax Cut Next Week

Leader Cantor, House GOP Continue To Focus On Job Creation and Boosting Small Business. The Small Business Tax Cut Act is a simple, clear solution to help small businessmen and women grow their businesses and hire new workers. The Small Business Tax Cut Act will allow small businesses with fewer than 500 employees to take a tax deduction equal to 20% of their active business income, irrespective of how the small business is organized. Our 20% small business tax cut goes straight to the bottom line so small business owners can retain more capital, invest in their businesses and create more jobs. Read More HERE

Small Business Owners Face More Burdens Than Big Biz Counterparts. Small business owners don’t often feel like they’re on a level-playing field when they compare their challenges to those of their corporate counterparts. Managing tax liabilities is one clear example. Big businesses typically have tax departments with many people working for weeks to meet deadlines — some even working year-round to make sure all of their ducks are in a row. However, small firms don’t typically have such extensive resources, and that can create enormous problems considering the ever changing tax jurisdiction rules and boundaries that make it extremely difficult to stay up to date. This can catch up with small business owners, and not just as the mid-April deadline for filing looms large. During an audit, many small businesses discover that inaccurate or outdated locational data has led them to take out too much or too little tax on customer payments or employee withholdings. What happens next? An auditor hits them with a massive bill, in some cases so large that the doors have to close. The Washington Post


State Of Play (2): President Obama Has Failed To Focus On Economic Growth and Job Creation

President Obama’s Political Ploys Are A Weak Substitute For Real Solutions and Tax Reforms. Three years into his presidency, Obama has not introduced a plan for comprehensive tax reform — arguably the most important vehicle for fixing the nation’s finances and boosting long-term economic growth … The Buffett Rule, rather than overhauling the tax code, would simply add another layer. … The politics of the Buffett Rule — it has no chance of passing when the Senate takes it up next week — are so overt that Obama’s remarks Wednesday were virtually indistinguishable from a section of his campaign speech in Florida on Tuesday. The Washington Post

Editorial: Imagine If President Obama Actually Focused On Job Creation Instead Of ObamaCare and False Economic Policies Such As The Buffett Rule. Buffett, schmuffett, President Obama's Buffett Rule has nothing to do with fairness, despite what Vice President Joe Biden might say today when he visits Exeter. The Buffett Rule is about class warfare as is much of the president's re-election bid to date (i.e. the alleged war on women). It is also about distracting voters from the Obama administration's mishandling of the economy. … Imagine if you will that President Obama had invested his political capital in revitalizing the economy. Imagine a year spent focusing on creating jobs instead of a year distracted by ObamaCare. … The editorial board here at Foster's Daily Democrat firmly believes that voters want a united country, not a divided one. To that end, President Obama and Vice President Biden overestimate their ability to hide behind the smoke and mirrors of false economic policy such as the Buffet Rule. Foster’s Daily Democrat

ICYMI – The Cost Of President Obama’s Failed Stimulus Program Has Increased By $20 Billion. A Treasury official said outlays in March were higher this year in part because the government moved an additional $30 billion in recurring benefit payments into the month since April 1 fell on a weekend. Outlays also increased by about $ 20 billion, compared to March 2011, due to a non-cash accounting re-estimate for the cost of economic stimulus programs, the official said. Dow Jones

REMINDER – The Result Of President Obama Failing To Focus On Growth – Unemployment Above 8% For The Past 38 Months BLS


ObamaCare Update

ObamaCare Is the Embodiment of Fiscal Disaster. The inescapable conclusion: “Taken as a whole, the enactment of the [Affordable Care Act] has substantially worsened a dire federal fiscal outlook,” Blahous writes. The health law “should be expected to increase federal spending obligations by more than $1.15 trillion over the upcoming decade and to worsen cumulative federal deficits by somewhere between $340 and $530 billion over the same period,” he writes. The Obama administration had claimed the health law would lead to deficit savings of $124 billion over the first decade. … “The ACA both increases a federal commitment to health care spending that was already unsustainable under prior law and would exacerbate projected federal deficits relative to prior law,” he writes. The health law will increase federal health spending “by well over $1 trillion over the next decade alone. It thus does not constitute effective health care reform.” … The health law’s deficit reduction was a major selling point in its passage. But Blahous concludes that “the government’s fiscal predicament is now significantly worse than before the law was enacted.” Forbes

House Dem Admits Democrats “Made Lots Of Mistakes” With ObamaCare, Says It Wasn’t Politically “Worth It.” In an interview with Roll Call Wednesday Yarmuth, in his third term, was asked whether the Affordable Care Act — which will be a burden to Democrats for the second consecutive cycle — was worth the political cost. “Oh, politically? Politically?” Yarmuth paused for a moment. “Big picture, politically, it probably wasn’t worth it. … Yarmuth, a strong supporter of the law, mused about the missed opportunities in the deeply contentious yearlong debate over how to reform America’s unwieldy health care system. “We — collectively, those of us interested in doing comprehensive health care reform — we made a lot of mistakes,” he said. Roll Call


Regulatory Row

Speaker Boehner, Senate Minority Leader McConnell Call On President Obama To Reaffirm His Pledge Of Transparency and Not Issue Any “Midnight Regulations.” Speaker John Boehner (R-Ohio) and Senate Minority Leader Mitch McConnell (R-Ky.) sent a letter to Obama Wednesday, urging him to “reaffirm” his “pledge to transparency, openness, and accountability by committing to withhold from issuing any economically significant or controversial ‘midnight regulations’ after the current fiscal year ends” Sept. 30. … Late-coming regulations, the GOP leaders say, are usually “too controversial to have been adopted earlier.” … Cutting regulations has been a main rallying cry of Republicans during the 112th Congress. The GOP has accused Obama of stifling job growth by putting in place too much “red tape” on businesses. Politico

 





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