The Republican Study Committee (RSC) has drafted a bill called The Jobs Through Growth Act, H.R. 3400, which is supposed to significantly reduce the federal burden on businesses and encourage business owners to begin hiring again. The RSC, led by Chairman Jim Jordan, has combined several pieces of legislation that relieve job producers by reducing personal & corporate income taxes, eliminates the death tax (which is essentially double taxation), cuts regulatory bloat by exempting small businesses, addresses energy issues and much more. This bill would be an immediate boon to the economy by eliminating the government-driven uncertainty that our economy is facing. (See the details of the bill below the jump.)
Most — if not all — of the elements of the bill would have an immediate positive impact on the economy. The reduction of taxes allows individuals to decide how they would like to spend their money, rather than some incompetent member of the federal government. Allowing foreign profits to repatriated at a lower rate will encourage investment and spending in the US rather than overseas. The reductions of red tape could provide the biggest benefits for the economy. The amount of money spent on complying with government regulations can now be spent on more employees or can be passed along to the consumer reducing prices across the board. Another way prices could immediately be lowered is with the relief provided by the energy reform portions of the bill, if energy is cheaper, everything can be cheaper.
The only issues with the bill are that the RSC doesn’t go far enough in reducing taxes and there is no reduction of spending implemented into the bill. If the bill is passed, the tax cuts are going to have to be matched by a cut in spending; otherwise the national debt goes up. The bill should have addressed this by introducing real spending cuts in areas where the federal government has no place spending our hard-earned dollars.
All points aside, the legislation would be an immediate boon to the economy and get people back work. The country is desperately in need, so hopefully Congress can act sooner than later.
- The Tax Payer’s Choice Act – Provides taxpayers the choice to ditch the current tax code and switch to a flat tax of 15% of the first $50,000 of taxable income and 25% for the rest
- Cut the Corporate Tax Rate to 25% – Reduces the tax rate from 35%, also directs the House to identify tax deductions and credits that could be eliminated
- Index Capital Gains for Inflation – Removes tax burdens on inflation
- Reduces the Repatriation Rate – Provides a one year holiday reducing repatriated profits to 5.25%
- Death Tax Repeal – Permanently ends the death tax
- Regulation Moratorium and Jobs Preservation Act – Prevents new regulations from being created until unemployment falls below 7.7%
- Exempt Small Businesses – Would exempt businesses with under 200 employees for many regulations
- REINS Act – Requires congressional approval for regulations that have an annual impact of $100 million
- Small Business Regulatory Freedom Act – Requires greater consideration of small businesses from federal regulators
- Small Business Freedom of Commerce Ac t – Allows small businesses to opt out of regulations created since the beginning of the recession in 2007
- Consumer Relief for Pain at the Pump Act – Lessens regulatory burden that increase the price of gas
- Extension of Outer Continental Shelf Leases – Provides a one year extension on OCS leases
- Green Light the Keystone Energy Pipeline – Removes barriers that are preventing the approval of the Keystone pipeline