This doesn’t involve gimmicks such as a tax credit for hiring new workers. It does involve things like eliminating the death tax. That’s something the Senate can do by doing nothing. The death tax is set to go to zero on Jan. 1.
The U.S. now has the second highest combined federal and state corporate tax rates in the developed world. And since “the more you tax something the less of it you get” (take smoking, for example), it’s little wonder our economy remains in the doldrums.
The president also vowed to support proposals to blanket the financial sector with even more regulation – and create a new “Consumer Financial Protection Agency” to oversee it all.
But our economy is already overregulated. A new bureaucracy would raise costs for consumers, reduce the number and type of loans and financial services available, and further add to the confusion caused by conflicting consumer laws imposed by the states. Instead, lawmakers should look into repealing Sarbanes-Oxley, a regulatory bill passed in haste seven years ago to address a problem the market had already dealt with.
The Securities and Exchange Commission admits it costs the average company more than $2.3 million per year to comply with the law. That’s much more than the $91,000 cost the agency projected when the bill passed. Meanwhile, “Sarbox” has virtually wiped out the once-prosperous initial public offering market in this country. Companies looking to “go public” now list in London and Hong Kong instead.
Obama’s first “stimulus” proved again that government spending actually costs more jobs than it creates. Instead of spending even more, our country should pursue more affordable -- and effective -- ways to encourage growth. We simply can’t spend our way to prosperity.