Today, President Obama will spend taxpayer dollars politicking on college campuses in North Carolina and Colorado, where he is expected to recycle the message that his policies will give everyone a “fair shot” at success. But the President’s rhetoric collapses under the weight of the facts. Graduating college students are facing dismal job prospects, suffering under the President’s economic policies that have stifled job growth and increased economic uncertainty. Rather than pushing tax hikes and more spending, the President needs to work with Congress on pro-growth policies that will help create quality jobs for young people, like the Small Business Tax Cut Act. As the Richmond Times-Dispatch wrote this morning, “tax cuts not only help the economy grow, they help Washington shrink” and that is good news for job creation.
Today In History: In 1800, President John Adams approves legislation to appropriate $5,000 to purchase "such books as may be necessary for the use of Congress," thus establishing the Library of Congress. The first books, ordered from London, arrived in 1801 and were stored in the U.S. Capitol, the library's first home. The first library catalog, dated April 1802, listed 964 volumes and nine maps. Twelve years later, the British army invaded the city of Washington and burned the Capitol, including the then 3,000-volume Library of Congress.
Birthdays: Rep. Jack Kingston, Cedric The Entertainer, Kelly Clarkson, Shirley MacLaine, Jenna Stone and Glenn Morshower
Editor’s Note: Today is Lauren Pratapas’ last day in Whip McCarthy’s office. On behalf of Team Cantor and the Republican Conference we wish you the best of luck at your new gig and know that you’ll be missed!!!
Here is what’s in today’s Ledger …
State Of Play: Cantor, House Republicans Continue To Focus On Pro-Growth Measures, Job Creation
Editorial: Cantor’s 20% Small Biz Tax Cut Demonstrates House Republicans Are Committed To Promoting Pro-Growth Policies. Good posture is important, especially in Washington. And Rep. Eric Cantor's small-business tax cut, which the House passed last week, demonstrates it. In offering an alternative to Democrats' demand for a tax hike on rich folks, the measure strikes a pro-growth pose. … The bill would let small businesses deduct 20 percent of their income — but only if they pay wages to workers, a stipulation meant to ensure the money goes to job creators rather than celebrities or lucrative business partnerships. … Look at the bigger picture, and you will note that even a tax cut that created no jobs — and Cantor's measure would certainly generate more than zero — still deprives the federal government of revenue. In other words, tax cuts not only help the economy grow, they help Washington shrink. Sounds like a fantastic benefit to us. Richmond Times-Dispatch
Leader Cantor: If We Are Going To Get People Back To Work, We Have To Focus On The Engine Of Job Creation and That Is Small Business. The idea is simple. All businesses with fewer than 500 employees would be able to cut their federal taxes by 20%. Congressman Cantor persuaded the House to pass the measure, saying it will leave small businesses with more of their income, so that they can hire more workers. In a statement posted on Cantor's Youtube page, he stated, "In fact, there is a study out which shows that this bill when fully implemented will create an additional 100,000 plus new jobs each year," referencing a study by Fiscal Associates, Inc. We talked with local business operators, who have mixed views. Some, such as Puritan Cleaners President Gary Glove, are all for it, saying it could help them create jobs. Others says businesses may end up using the money in other ways. … "The beneficiaries of this policy are small businesses and a third of those small businesses are women-owned businesses. If we are going to get people back to work, we have got to help the job engine that produces those jobs, which is small businesses," Cantor said. NBC 12
• Roadblock Reid: View The List Of Over Two Dozen Bipartisan Jobs Bills Senator Reid Is Blocking HERE
State Of Play (2): Even President Obama’s Former Top Economist Says His Tax Hikes Will Stunt Growth, Hurt Job Creation
President Obama’s Original Chief Economist: Tax Increases Have A Very Large and “Highly Significant Negative Impact” On Economic Growth and Job Creation. A powerful analysis by President Barack Obama’s first Chair of his Council of Economic Advisers (CEA) indicates the President’s proposed tax increases would kill the economic recovery and throw nearly 1 million Americans out of work. Those are the extraordinary implications of academic research by Christina D. Romer, who chaired the CEA from January 28, 2009 . In a paper entitled: “The Macrcoeconomic Effects of Tax Changes” published by the prestigious American Economic Review in June 2010 (during her tenure at the White House), she stated: “In short, tax increases appear to have a very large, sustained, and highly significant negative impact on output.” In other words, the tax increases proposed by President Obama would have a major contractionary impact on economic growth, and by implication, job creation and employment regardless of changes in government spending, what the Fed does or what happens to the price of oil etc. Forbes
• President Obama’s Tax Hikes Cuts Would Cost 800,000 Jobs. How big an impact? In his 2013 budget, President Obama proposes $103 billion in 2013 tax increases, including $83 billion of higher income taxes on those who make more than $250,000 a year, or about 0.65% of GDP. Using the Romer baseline estimate, that would reduce real GDP by 2 percentage points over the next 10 quarters. Based on the general relationship between economic growth and unemployment, such a fall in output implies a loss of more than 800,000 jobs. Forbes
Reaganomics vs. Obamanomics – The Reagan Tax Cuts Led To Vibrant Economic Growth, The Obama Spending Splurge and Push For Higher Taxes Hasn’t.
Quarterly GDP Growth Rate:
• Jan-March 1983/2011 0.3 2.3
• April-June 1983/2011 5.1 0.4
• July-Sept 1983/2011 9.3 1.3
• Oct-Dec 1983/2011 8.1 1.8
• Jan-March 1984/2012 8.5 3.0
Chairman Graves Focuses On Removing Regulatory Burdens Making It Easier For Small Businesses To Grow and Create Jobs. Right now, [small businesses are] faced with a lot of uncertainties out there. They don't know what the health care bill is going to cost them, they don't know what their taxes are going to be because the whole tax code is going to expire at the end of this year, they don't know what the regulatory environment is going to be because we're seeing this administration continue to pile on more, and more, and more, and more regulations coming from the departments themselves," Graves said. "A lot of small businesses are just holding back, waiting to see what happens, and they're not expanding. If you're not seeing expansion, particularly when seven out of every 10 jobs are small business jobs, you're not seeing that expansion and growth in the economy." … Graves said among his goals are putting certainty into the tax codes and getting rid of "ridiculous" regulations. Asked to give an example, Graves centered on the Environmental Protection Agency. "Like the EPA wanting to regulate dust as a pollutant, that's just a goofy regulation that doesn't need to be there. It's going to hammer agriculture, which our entire area is heavily agriculture-related. If you regulate dust as a pollutant, it's just going to shut down so many things. If you think about it, in our part of the world, dust is a fact of life," Graves said. The Kirksville Daily Express
The Back Story: President Obama and Student Loans. In 2007, then-Illinois Sen. Barack Obama missed two votes on the student loan interest bill that he now wants Congress to extend. Obama twice skipped the Senate vote on the College Cost Reduction and Access Act when the bill came to the Senate floor first in July and again in September of 2007, according to public records. The bill, introduced by Rep. George Miller (D-Calif.) and signed into law by President George W. Bush, first cleared the Senate in July on a 78 to 18 vote, with Obama as one of only four senators to abstain. Obama did not cast a vote again in September, after the House and Senate had ironed out different versions of the bill. … Obama has made keeping student loan interest rates low a new priority for his administration - but as a senator, he neither voted for Miller's bill nor signed on as a cosponsor. Politico
Medicare’s Obama “Donation.” Recall how last year the White House rudely overruled the EPA on its ozone rule, postponing it past November. Then there were those temporary tax cuts that go poof on December 31. Most remarkable is Mr. Obama's decision to flout his own health-care law to temporarily protect private insurance inside Medicare. ObamaCare slashes about $145 billion from Medicare Advantage … So in November 2010 Mr. Obama's Medicare team announced a nationwide Medicare Advantage "demonstration project" that would test if paying insurers bonus subsidies would improve quality over the next two years. Lo and behold, according to a new investigation by the Government Accountability Office, or GAO, the $8.35 billion pilot program is just enough to reverse 71% of the Advantage cuts that would have hit seniors in the runup to November. And behold again, the demonstration project turns into a pumpkin in 2013. … The entire point of Medicare Advantage is not to subject it to regulatory fine-tuning. Seniors who sign up for Medicare Advantage basically take a voucher and have the run of about 3,300 different plans by 175 different insurance companies in total, with a diversity of benefits, premiums and cost sharing. … Given the pre-election timing of this short-term Medicare Advantage pardon, the Federal Election Commission should bill HHS for giving Mr. Obama's campaign what amounts to an $8.35 billion re-election contribution. The Wall Street Journal