Government and the Jobs Problem

Jul 18, 2010

Marty Robins had a great op-ed the other day on AOL News. It highlighted the fact that the current Administration's policies are discouraging the risk-taking, investing and entrepreneurial activity that is needed to fuel job creation, and may well be depriving the government of revenue by suppressing economic activity.

Of note:

  • Marginal income tax rate increases reduce the benefits from work and business formation by those who are best equipped to do these things. We need to think more about the negative multiplier resulting from people not spending and investing.
  • Tax increases on dividends and capital gains raise the cost of capital, result in fewer deals being done, and divert money that could be infused back into the economy to taxes. And these tax increases on investment income will be exacerbated down the road by even more taxes on investment income enacted as part of the health care bill.
  • Other policies, ranging from energy policies to card check, discourage job creation nationwide.

The op-ed concludes "it's government policies that are hurting more than helping job growth."

Subscribe today for Free Enterprise Updates

  • Latest business trends and best practices
  • News about legislation and regulation impacting business
  • Business how-to articles from industry experts
  • Commentary and interviews with newsmakers in business and politics