Category Archives: tax loopholes

Rush Holt:" Made in America" is Making A Comeback

Nearly two-thirds of Americans say that job creation should be Washington’s top priority. Yet the new majority in the House has spent months on phony debates that are more about gaining political advantage than about helping our economy.

The good news is that, even as Washington has taken its eye off the ball, manufacturers have shown a path toward an economic renewal. Although U.S. manufacturing was in decline during the run-up to the Great Recession, it has bounced back noticeably. Last year alone, manufacturers added 152,000 new jobs, and the sector has now seen 21 straight months of growth. Let’s not write any obituaries for manufacturing in our country or our state.

On Tuesday, I toured MICRO Stamping Corporation in Somerset, which employs about 250 New Jerseyans.

This month, I am visiting manufacturers across central New Jersey. These companies employ our neighbors in the manufacture of a wide range of products: everything from medical devices to specialty inks.

My hope is to hear ideas for concrete, actionable steps that Congress can take to build upon the recent resurgence in manufacturing and put more Americans back to work: things like supporting new infrastructure investment, closing tax loopholes for outsourcers, expanding science education, and providing businesses with incentives for new hiring. I hope you’ll share your ideas, too, either by sending an e-mail at holt.house.gov or calling me at 1-87-RUSH-HOLT.

America’s middle class was founded on the strength of our manufacturers. It’s time to rebuild that foundation and renew our manufacturing sector.

Sincerely,


Rush Holt

Member of Congress

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Filed under 11th Congressional District, back to work, great recession, Job creation, made in the usa, Manufacturing, Middle Class, Rush Holt, tax loopholes

Cut, Cap and Balance: The Wrong Approach to Deficit Reduction

The following was posted this morning at the White House blog by Jason Furman, Principal Deputy Director of the National Economic Council.

The blog post in response to all the rhetoric being thrown around by the ultra conservative right-wingers and TEA praters, who have taken control of the Republican Party and are risking our country’s economic future and well being over the debate about raising the national debt limit.

These people are pushing for a proposal called “Cut, Cap and Balance” which is legislation that would cut $111 billion out of the budget immediately, cap spending to a percent of the Gross Domestic Product, and send a Balanced Budget Amendment to the states in return for increasing the $14.294 trillion debt ceiling.

On so many levels this proposal is wrong and could lead to a worsening of the economy and handicap future Congresses and Presidents ability to deal with a fiscal and economic crisis.

“Cut, Cap and Balance” is not the answer to our current troubles in this country, fixing the economy and putting people back to work is with sound fiscal policy that has proven in the past to work.

Democrats and Republicans agree that getting our fiscal house in order is one of the critical challenges facing America. To address it we are going to have to make tough choices, bringing to the table a commitment to examine every area of the budget and every loophole in the tax code without presumptively taking any of the options off the table. But it is critical that we not bring down our deficits and debt at the expense of economic growth, innovation and job creation, or place the greatest burden on older Americans and the most vulnerable. That is precisely what the House’s Cut, Cap and Balance plan would do – a proposal that White House Press Secretary Jay Carney described as “duck, dodge and dismantle.”

The House plan fails to achieve a balanced plan to reduce the deficit, which is precisely the approach that has worked successfully in America in the past and has recently been recommended by a number of different fiscal commissions.

Let’s start with the “cut” and “cap” portions of the bill. These sections require spending cuts in 2012 and caps over the next decade identical to those in the House Budget Committee Chairman Paul Ryan’s plan., By House Republicans’ own design, achieving those spending levels would require cuts that would be harmful to the economic recovery in the short-term while also damaging our long-term competitiveness and placing a higher burden on seniors and the most vulnerable. To give a few examples:

  • The bill would abruptly cut more than $100 billion in spending in the first year alone, a step that Congressional Budget Office Director Doug Elmendorf stated would “affect our projections for GDP growth over the next two years.”
  • The House Budget Resolution plan would cut clean energy investments by 70 percent, infrastructure investments by a third, and education and training by 25 percent – cutting 320,000 children from Head Start and reducing aid for families trying to put their kids through college by hundreds, or even thousands of dollars.
  • It would cut Medicaid by one-third over the decade, and by nearly 50% by 2030. This could, according to the Kaiser Family Foundation, result in 36 million people losing Medicaid coverage, including people with disabilities and seniors in nursing homes. And that comes on top of the 17 million who would lose coverage due to repealing subsidies in the Affordable Care Act.
  • And it would cut programs for the most vulnerable – for example, by food stamp benefits for a family of four by $1,760 per year or cut 8 million households from the program.
  • Finally, the House Budget Resolution proposed to convert Medicare to a voucher program, increasing costs for Medicare beneficiaries by $6,400 a year beginning in 2021 – with those higher costs increasing over time.

But “Cut, Cap and Balance” doesn’t stop there. It also includes a requirement that to secure an increase in the debt limit necessary to avoid default – and a devastating impact on families and businesses – Congress must pass a constitutional amendment requiring a balanced budget. Moreover, it is an extreme version of a constitutional amendment that would cap government spending and require a two-thirds supermajority to cut tax loopholes or take other steps on revenue. The President has frequently made clear why he thinks a Balanced Budget Amendment is a misguided effort to absolve leaders in Washington of their responsibility for making tough choices. But it is important to understand what this requirement means when added on top of the cuts in the House Budget Resolution.

To start with, consider that at the end of the next decade, the House plan would still be $400 billion a year short of achieving a balanced budget. Unless Republicans are willing to entertain $3 to $4 trillion in additional revenues over the next decade, that means $400 billion a year would need to be cut beyond the House Budget Resolution.

And when you’ve already made such deep cuts to discretionary spending, Medicaid and other programs, it becomes difficult to imagine any credible ways to achieve those spending levels without including Social Security in the reductions and making substantially deeper reductions in Medicare.

So if the required spending cut were across the board, it would mean all programs, including Social Security and Medicare, would be cut by 10 percent by the end of the decade on top of the House Budget Resolution.If defense spending alone were exempted, it would mean that all other programs (again including Social Security and Medicare) would be cut by about 12 percent by the end of the decade on top of the House Budget Resolution. It would be possible to avoid cuts of this magnitude, but that would require dramatically deeper reductions than the one-third cut in Medicaid and infrastructure currently proposed in the House Budget Resolution.

We obviously don’t agree with this approach. The President has proposed a comprehensive approach that ensures we live within our means and reduces the deficit by $4 trillion, while supporting economic growth and long-term job creation, protecting critical investments, and meeting the commitments made to provide economic security to Americans no matter their circumstances. We want to make significant cuts to government spending, including additional savings that come from further strengthening critical programs like Medicare, while protecting the recovery, strengthening the middle class and making the investments that will promote economic growth so folks feel confident in their futures and their children’s futures.

Representatives from both parties will continue to talk about reaching the largest deal possible. The President is pushing everyone to come to the table, put politics aside, work through our differences and prove to the American people that we can still do big and difficult, but necessary things.

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Filed under balanced budget amendment, cap cut and balance, Congressional Republicans, debt ceiling, default, economy, higher interest rates, Medicaid, Medicare, President Obama, Social Security, tax loopholes

President Obama’s Weekly Adress 7/16/11: A Unique Opportunity to Secure our Fiscal Future

WASHINGTON – In this week’s address, President Obama called on both parties to work together to find a balanced approach to solving our nation’s deficit problem. The President emphasized the importance of compromise and shared sacrifice so that we can overcome our fiscal challenges and move our country forward. To get our fiscal house in order, we must cut spending, but we must also close tax loopholes for special interests and ask the wealthiest Americans to pay their fair share. Through cooperation and a bipartisan approach, we can get our economy on firmer ground and give our businesses the confidence they need to create more jobs across the United States.

http://www.whitehouse.gov/sites/all/modules/swftools/shared/flash_media_player/player5x2.swf

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Filed under economy, fiscal responsibility, Job creation, national debt, President Obama, shared sacrifice, spending cuts, tax loopholes, weekly address

>President Obama’s Weekly Address 7/2/11: Cutting the Deficit and Creating Jobs

>WASHINGTON- In this week’s address, President Obama spoke to the American people about reducing the nation’s deficit and creating jobs across the country. The President emphasized the need for Government to live within its means— just as families do—in order to put the nation on a fiscally sustainable path which is critical to long-term economic growth and job creation. To solve the deficit problem, Democrats and Republicans must make tough choices and look at every tax loophole and program for opportunities to save money. President Obama stressed the importance of trimming the budget while also making critical investments in education, research, and technology to spur job growth and invest in our future. As families and friends join together to celebrate Independence Day, the President reminded Americans that since our founding, we have overcome challenges by coming together to solve our nation’s problems.

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Filed under 4th of July, credit cards, cutting spending, economic growth, Indepence Day, Job creation, Medicare, national debt, President Obama, tax loopholes, weekly address

>President Obama’s Weekly Address 10/16/10: GOP Rewarding Corporations that Create Jobs Overseas

>The President lays out his agenda to foster investment here at home. He vows to close the tax loopholes for sending jobs and profits overseas that Congressional Republicans have tried to protect.

http://www.whitehouse.gov/sites/all/modules/swftools/shared/flash_media_player/player5x2.swf

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Filed under House Republicans, Job creation, job growth, President Obama, tax loopholes, weekly address, Whitehouse.gov