Since the economic downturn first began in 2008, the federal government has spent, lent or committed nearly $13 trillion to blunt the recession. Unfortunately, after two years of various bailouts and economic recovery packages, our nation has lost 8.5 million jobs. This tremendous loss, combined with our mounting national debt, has created an unsustainable economic environment that threatens our long-term prosperity.
In the 112thCongress, our focus must not be on more government spending but rather on eliminating job-killing federal regulations, ensuring low tax rates and expanding trade markets for U.S. manufacturers and farmers.
Encouraging small business growth
Over 80 percent of new job growth comes from small businesses. We must provide tax incentives for small businesses to invest in their own companies, thereby putting them in a position to hire new employees. We must also release small businesses from burdensome regulations and government compliance laws that inevitably hinder job growth.
According the National Federation of Independent Business (NFIB), the most costly paperwork burden placed on small businesses is tax preparation. Therefore, I was a proud co-sponsor of H.R. 4, which repealed Section 9006 of H.R. 3590, the Patient Protection and Affordable Care Act. This legislation commonly known as the 1099 rule, required business owners to submit a separate 1099 reporting form for every single business-to-business transaction of $600 or more in a given year, which includes basic expenses.
The House and Senate passed the bill with bipartisan support and was signed into law by President Obama in April 2011. The repeal of this burdensome requirement will cut taxes by $24.7 billion and reduce federal spending by $24.8 billion over ten years for a net deficit reduction of $166 million.
Ensuring Low Tax Rates
Americans know best, how to spend their hard-earned money than the federal government does. As a result, I will oppose any federal income tax increase. Ultimately, I would like to see a tax code with many fewer deductions and special credits on both the personal and corporate side, and a tax code that does more to encourage economic growth.
Expanding Trade Markets
To compete in the global economy, the U.S. needs open trading markets to export American goods. Despite false claims, trade does not involve shipping jobs overseas. I never want to see a single American job shipped overseas. As a member of the Subcommittee on Commerce, Manufacturing and Trade I support free and fair trade because it opens up additional markets for U.S. manufactured and agricultural goods. If more markets are available for U.S. goods, the demand will increase, which will then increase production and job creation here at home.
According to the National Manufacturing Association, 89 percent of Illinois' exporters are from small businesses with manufactured exports accounting for 25 percent of manufacturing jobs in Illinois. The American Farm Bureau estimates passage of the three pending trade agreements with Columbia, Panama and South Korea will account for $2.5 billion in new exports. Delaying passage will only close these markets to U.S. manufacturers and farmers to other countries who are more proactive in expanding markets for their products.
Be assured, I will never support government intrusion into the free market when it would damage our already fragile economy. Congress must restore government back to its original intent -- limited, effective, and efficient.
I look forward to working with my colleagues on both sides of the aisle to continue eliminating undue and unnecessary restrictions on job creation and growth in order to refuel our economic growth.