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Politics : Just the Facts, Ma'am: A Compendium of Liberal Fiction -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (78227)	3/9/2010 6:40:26 PM
From: Sully-	Read Replies (1) \| Respond to of 90947

Exploring The Obama Jobs Deficit IMB Editorials Posted 03/08/2010 06:58 PM ET After crunching the numbers, the Heritage Foundation found the economy actually lost fewer jobs — 48 million — during the first six months of this recession than during the milder downturn in 2001, when 50 million were shed. So why is unemployment so much higher now? A dearth of job creation. Through the first two quarters of 2009, the economy created just 40 million jobs vs. the 47 million it created two quarters into the 2001 recession. Now, eight months into a recovery, the economy still isn't adding positions. In fact, it has lost an additional 1.1 million jobs — including 36,000 last month — despite a rebound in gross domestic product growth. A huge share of the unemployed has been out of work for more than a year. Minorities have been hit hardest, with the jobless rate for young black men climbing to a record high. What's the deal? No entrepreneurial incentives — namely, across-the-board cuts in marginal tax rates, which fueled hiring in last decade's recovery as well as the one in the 1980s. Worse, President Obama plans to raise taxes on the entrepreneurial class. Studies show cuts in individual tax rates encourage new business startups, the catalyst for job creation. And there's nothing now to incentivize existing small businesses to create jobs. According to the Census Bureau, average yearly employment from startups accounted for 3% of total employment from 1980-2005. Without the new business formed during that period, employment growth would have been negative. This recovery has favored big companies, while small businesses are still not expanding — and most Americans work for small businesses. Even the corporate job gains are weak. Big firms are cautious about hiring because of uncertainty over new government red tape and corporate tax policy. Obama wants to make U.S. corporations pay taxes on all their income abroad, whether or not they repatriated it. Already, some corporations with foreign operations reportedly are drawing up plans to turn themselves into foreign companies with U.S. operations. Changing tax treatment on foreign revenues could drive multinational corporations — and the jobs they create — permanently out of the country. For the first time, the U.S. is facing European-style structural unemployment, which could dry up consumer spending and tip the consumer-driven economy into another recession. So far the economy has lost a net 8.4 million jobs from this recession. If lost permanently, the housing market may never fully recover, making it harder for the economy to sustain a recovery. Without home-price appreciation, we won't see the kind of mortgage equity withdrawals that helped fuel consumer spending in previous recoveries. And without strong consumer spending, something like a tax hike could easily lead to a double-dip recession. The president is preparing vast new taxes, including raising the top individual rate to 45% from the current 35% with a 5.4% surcharge, plus the expiration of the Bush tax cuts. These tax hikes will hit small businesses especially hard. Instead of holding an "entrepreneurship summit" for Muslims, like the one the White House announced last week to build economic ties with the Islamic world, the president should hold one in America so our entrepreneurs can tell him what it takes to start businesses and put people back to work here. investors.com