PRESS RELEASE: HOLTZ-EAKIN: REDUCE UNCERTAINTY AND ELIMINATE BARRIERS TO GROWTH TO BOOST ECONOMY
WASHINGTON – American Action Forum President Douglas Holtz-Eakin today unveiled his “Principles for Effective Jobs Plans.” In anticipation of President Obama and others announcing their plans to get the economy back on track this week, Holtz-Eakin provides guidelines for evaluating their plans.
“The hallmarks of the Obama Administration's economic policy has been a combination of short-term gimmicks, lofty speeches and plenty of blame for previous administrations, but unfortunately none of these will encourage the entrepreneurship and growth necessary to turn the economy around,” said Holtz-Eakin. “As the President once again pivots to jobs, I have outlined principles that should be respected in any serious jobs plan. After Friday's dismal economic news, it's time to put politics aside and get serious about fixing the economy. I hope this week's address to Congress marks the beginning of the President's commitment to pro-growth policies and an end to his big spending and regulation-based strategy.”
Principles for Effective Jobs Plans:
Principle 1: No U-Turns
Provide long-term stability for job creators by implementing permanent, pro-growth policies; not temporary “stimulus” that gets turned on and needs to be turned off.
DO: Reduce the corporation income tax rate or allow tax-free repatriation – steps toward fundamental reform.
DON'T: Provide a temporary credit for new hires.
Principle 2: Focus on Businesses and International Competitiveness
Households and governments are awash in red ink and cannot be expected to power the recovery. Unleash the potential of our businesses whose balance sheets are strong and boost foreign sales.
DO: Ratify existing trade agreements or eliminate tax on repatriated earnings.
DON'T: Focus on temporary household tax cuts.
Principle 3: Attack the Debt Explosion
The nation is headed directly for a fiscal crisis – the most anti-jobs policy possible. Any jobs program must reduce the debt.
DO: Repeal the Affordable Care Act. Reform Social Security and Medicare to make programs sustainable for future generation and reduce future red ink.
DON'T: Create a new, permanent infrastructure bank with mandatory spending authority or additional, overlapping training program.
Principle 4: Reduce Uncertainty over Future Policy
Immediate, permanent reforms provide maximum policy clarity. For policies that are not immediate, clear timetables and automatic implementation are desirable.
DO: Cut the corporate rate now, eliminate the tax on repatriated earnings, and broaden base according to a legislated timetable.
DON'T: Close loopholes and raise revenue without a commitment to reduce marginal rates and complete tax reform in future.
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