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New study: reducing government regulation creates jobs

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From the Washington Examiner.

Excerpt:

According to the Phoenix study, “even a small 5% reduction in the regulatory budget (about $2.8 billion) would result in about $75 billion in expanded private-sector GDP each year, with an increase in employment by 1.2 million jobs annually. On average, eliminating the job of a single regulator grows the American economy by $6.2 million and nearly 100 private sector jobs annually.” The reverse is true as well, according to Phoenix, which said “each million dollar increase in the regulatory budget costs the economy 420 private sector jobs.”

“Our statistical analysis of historical data indicates that federal expenditures on regulatory activity have a significant impact on the size of the private-sector economy and private-sector employment,” says Dr. George S. Ford, chief economist at the Phoenix Center. “While the entire federal budget must be cut to address the deficit problem, the evidence indicates that reductions in the overall federal regulatory budget may substantially impact the growth of economic output and employment.”

It’s hard to imagine any way of making it clearer: Whatever merits it may otherwise have, the federal regulatory bureaucracy is a tremendous drag on the economy, diverting and destroying the very precious investment capital that is essential to generating the growth that creates jobs that pay the taxes that fund the government. This provides an important insight into why federal offices like the Environmental Protection Agency do not consider the effect of proposed regulations on the ability of the economy to generate jobs.

If you want job creators to create jobs, ask the job creators what is stopping them from creating jobs. At the top of their list will be government regulations.
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Ohio Senate passes John Kasich’s pro-life, pro-jobs, pro-child budget

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From Life News.

Excerpt:

The Ohio state legislature today passed a state budget which includes multiple pro-life amendments ensuring the state is not involved in abortion funding with taxpayer money.

The state budget, House Bill 153, now advances to pro-life Governor John Kasich. Among other things, the state budget contains Ohio Right to Life amendments that will protect taxpayer dollars from paying for abortion.

The first amendment bans abortions from being performed in public hospitals. The second amendment prohibits abortion coverage in insurance plans of local public employees.

“These two pro-life amendments will ensure that Ohio taxpayer dollars are not funding abortion,” said Mike Gonidakis, executive director of Ohio Right to Life. “It is crystal clear that a vast majority of Ohioans oppose all forms of taxpayer funding of abortion.”

Additional pro-life amendments were also included.  One measure requires the Ohio Department of Health to apply for federal abstinence education grants to reduce the number of unplanned pregnancies. The final pro-life amendment preserves the right of student groups to use and benefit from school funds and facilities, therefore protecting the rights of pro-life groups on college campuses.

“Abstinence education taught by our pro-life educators reduces teen pregnancy. These efforts have resulted in a decrease in teen abortions in Ohio, having a dramatic impact,” Gonidakis said.

“I am pleased that the Ohio House budget bill once again places a priority on abstinence education,” added Valerie Huber, Executive Director for the National Abstinence Education Association.  “Passage of this measure assures that students in Ohio will again receive the benefits of this important risk avoidance message. We appreciate Ohio Right to Life’s support for this measure that returns a state priority on abstinence education in Ohio.”

House Bill 153 will be signed into law on June 30th by pro-life Governor John Kasich, who Ohio Right to Life fully expects to support each of these life-saving measures.

[…]The passage of the budget comes after state House passage of three pro-life bills, including an abortion ban, ban on late-term abortions, and a bill to stop abortion funding in Ohio via the state exchange created under Obamacare. http://www.lifenews.com/2011/06/28/ohio-house-passes-ban-on-abortions-late-term-abortions/

And more from National Review on some of the fiscally conservative provisions in Ohio’s budget.

Excerpt:

For conservatives, it’s a recession-era dream budget. “It balances the budget, preserves our tax cuts, and sets the stage for renewing the ability of Ohio to create jobs,” Ohio governor John Kasich tells National Review Online.

The $55.5 billion budget, which covers the next two fiscal years and fills an $8.6 billion shortfall, cuts $1.4 billion from Medicaid funding, sells five prisons to private operators, and slashes the money sent to local governments by 25 percent next year and an additional 25 percent in the following year. That last decision has proven to be controversial already, with critics charging that Kasich is passing the deficit problems to local governments, forcing them to raise taxes or severely restrict services. Kasich sees the cuts as an opportunity — and says it would be a “huge mistake” for local government to raise taxes, thus “providing disincentives for companies to locate in their communities.”

[…]On education, over the next two years, Kasich is expanding school choice by quadrupling the numbers of vouchers available and rescinding a statewide cap on charter schools. He is capping higher-education tuition hikes at 3.5 percent, requiring that all university professors teach an extra class, and asking universities to look into ways of offering three-year bachelor’s degrees.

On the jobs front, he’s adamant about the need to forgo tax hikes, even preserving an $800 million tax cut implemented in January. “States with lower levels of taxation have faster economic growth,” Kasich observes. He’s also setting aside $100 million — the profits from the state’s liquor monopoly — to fund JobsOhio, a new initiative dedicated to attracting and retaining businesses in Ohio. With an unemployment rate of 9.2 percent and a loss of over 600,000 jobs in the last decade, Ohio could use the boost.

Both the state house and senate are Republican-controlled, and Kasich is “very optimistic” that the budget will pass. “I’ve told [state lawmakers] that if they have some better policy ideas, that’s fine — but we will not negotiate the numbers. We will have a balanced budget, and we will preserve the tax cut,” he says.

[…]But if the budget succeeds in bringing about an economic resurgence, look for Kasich to reap the benefits. In a piece headlined “Kasich’s beliefs at heart of plan,” Columbus Dispatch writer Joe Hallett commented that the “plan is as much a social budget as a fiscal one, built on ideology as much as practicality,” and said that “Ohio, at least in modern times, has never seen a state budget like [this].”

Kasich is ready to be judged on the results. “Budgets are just a means to an end. They’re not an end in themselves,” he observes. “This budget can set the stage in our state for recovery.”

And the Toledo Blade reports that the Ohio budget should please parents, as well.

Excerpt:

Some 1,100 Ohioans swarmed the grounds of the Statehouse Tuesday to demonstrate support for Gov. John Kasich’s plan to quadruple the number of school vouchers, even as overall aid for public schools is cut.

The governor’s $55.5 billion, two-year budget proposed last week also would lift the cap on the creation of charter schools, which operate with more regulatory freedom than their traditional public K-12 counterparts.

“School choice is not about doing away with public schools,” Lt. Gov. Mary Taylor told the crowd. “It’s about making them better. … Ohio’s future depends on our children being the best and the brightest in the world.”

Mr. Kasich’s spending plan would more than quad- ruple the number of vouchers to 60,000 by 2013 from roughly 14,000 now.

Suzanne Donahue of Toledo sends her 13 and 11-year-old daughters to St. Catherine of Siena School. She’s never received an Ohio EdChoice scholarship, and she’s not sure that her children would qualify under the proposed expansion. But she attended Tuesday’s rally to support that option for other children.

“We pay out of our pockets for it, and I vote for every tax situation that’s on the ballot for the kids because I hate to see the children suffer,” she said. “However, it would be nice to have some of those funds come to my own family. … I believe healthy competition will equal better schools and that better schools will survive.”

[…]The state runs two voucher programs — the statewide Ohio EdChoice Program, which caps the number of scholarships at 14,000, and a smaller, less generous program only for students in Cleveland city schools.

The EdChoice program targets students who attend a school that has been in academic emergency or watch for two out of the last three years. The grants are $4,250 for K-8 students and $5,000 for high school students, or the amount of the participating school’s tuition, whichever is less.

The budget also would lift the cap on how many bricks-and-mortar and on-line charter schools may be sponsored by one organization. The cap was imposed to slow the proliferation of such schools after a number of highly publicized failures. More than 300 charter schools in Ohio serve nearly 88,000 students.

Good news for fiscal and social conservatives. Well done, John Kasich!

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Republicans rebuff Obama’s call to raise taxes on small business

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First, an article explaining how the Obama administration wants to raise taxes on small businesses.

Excerpt:

Treasury Secretary Timothy Geithner told the House Small Business Committee on Wednesday that the Obama administration believes taxes on small business must increase so the administration does not have to “shrink the overall size of government programs.”

The administration’s plan to raise the tax rate on small businesses is part of its plan to raise taxes on all Americans who make more than $250,000 per year—including businesses that file taxes the same way individuals and families do.

Geithner’s explanation of the administration’s small-business tax plan came in an exchange with first-term Rep. Renee Ellmers (R.-N.C.). Ellmers, a nurse, decided to run for the U.S. House of Representatives in 2010 after she became active in the grass-roots opposition to President Barack Obama’s proposed health-care reform plan in 2009.

“Overwhelmingly, the businesses back home and across the country continue to tell us that regulation, lack of access to capital, taxation, fear of taxation, and just the overwhelming uncertainties that our businesses face is keeping them from hiring,” Ellmers told Geithner. “They just simply cannot.”

[…]When Ellmers finally told Geithner that “the point is we need jobs,” he responded that the administration felt it had “no alternative” but to raise taxes on small businesses because otherwise “you have to shrink the overall size of government programs”—including federal education spending.

So what about the Republicans in the House? Are they going to cave in to the Democrat demands for more taxes on job creators?

CNS News reports that House Republicans categorically refuse to raise taxes during a recession.

Excerpt:

Two days after House Majority Leader Eric Cantor (R-Va.) dodged the question of whether Republicans would insist that any increase in the debt limit in this fiscal year would be exceeded by spending cuts in this fiscal year, the congressman walked out of debt/budget talks with Vice President Joe Biden, stating he could not continue as long as the Democrats insisted that taxes be raised as part of a budget deal.

House Speaker John Boehner (R-Ohio), meanwhile, maintained that tax increases were off the table and that spending cuts should exceed any increase in the federal debt limit.

“Each side came into these talks with certain orders, and as it stands the Democrats continue to insist that any deal must include tax increases,” said Cantor in a statement released on Thursday.  “[T]he tax issue must be resolved before discussions can continue. Given this impasse, I will not be participating in today’s meeting.”

Both Cantor and House Speaker John Boehner (R-Ohio) have consistently said that any budget deal for the remainder of fiscal year 2011 and a vote on raising the debt limit–from $14.29 trillion to potentially $16.79 trillion (a $2.5 trillion increase)–would not include raising taxes.

After Cantor left the talks with Biden, along with Sen. Jon Kyl (R-Ariz.), Boehner held a press conference and said, “Listen, we’ve got to stop spending money that we don’t have and, since the beginning, the Majority Leader [Canotor] and myself, along with Sen. McConnell and Sen. Kyl have been clear: tax hikes are off the table.”

“First of all: raising taxes is going to destroy jobs,” said Boehner.  “If you raise taxes on the people that we need to grow our economy and to hire new workers, guess what? They’re not going to do it if they have to pay higher taxes to the federal government.”

“Second, a tax hike cannot pass the U.S. House of Representatives,” said the Speaker. “It’s not just a bad idea, it doesn’t have the votes and it can’t happen. And third, the American people don’t want us to raise taxes. They know that we’ve got a spending problem. That’s why Republicans passed a budget [drafted by Rep. Paul Ryan of Wisconsin] that pays down debt over time without raising taxes.”

But what about the Republicans in the Senate? Aren’t they usually more liberal than the Republicans in the House?

CNS News reports that Republicans in the Senate are absolutely opposed to increasing taxes in a recession.

Excerpt:

Sen. Mike Lee (R-Utah) told CNSNews.com that he would “absolutely not” support any tax increases as part of a deal to increase the debt limit.

Lee was asked if he agreed with Treasury Secretary Tim Geithner that revenue increases should be part of a negotiation on the debt limit because spending cuts alone are “irresponsible.”

“I’m fine with revenue increases as long as they don’t involve tax increases. There are other ways of increasing revenue. They could expand their use of federal public land through extension of oil and gas leases and so forth. If they want that kind of revenue increase, I’m all for that,” said Lee after endorsing the “Cut, Cap and Balance Pledge” during a press conference at the Capitol on Wednesday.

Politicians who support the pledge vow to vote against raising the debt limit unless Congress adopts a balanced budget amendment to the Constitution and implements budget cuts and caps on federal spending.

Lee was then asked if he would support any tax increases, specifically.

“No. Absolutely not. We can’t afford a double dip recession right now, and that’s exactly where that would take us,” said Lee.

“You take the same people whose investment dollars are needed to create jobs and you penalize them and you tell them you’re going to get to keep less of your, the rewards from your investment than you would otherwise take – that’s going to chill rather than promote investment. And if you do that, we’re going to have fewer jobs rather than more at a time when we can least afford to hemorrhage jobs.”

House and Senate Republicans understand that we need jobs, and that raising taxes will hurt job creation. Obama’s answer to everything is always more taxing and more spending and more borrowing. The Republicans have got to hold firm and take away his credit card. We need an intervention.