Rep. Pitts: We Need to Stop Holding Back Job Growth

We Need to Stop Holding Back Job Growth

By Congressman Joe Pitts

The economy shed millions of jobs this year, and, to bring us back to a healthy level of employment, we need rapid economic growth. We need to free our economy. Unfortunately, I only see Washington adding more chains to restrain American businesses, especially the small businesses that fuel the most job growth.

The President's economic advisor, Christina Romer, estimates that we need 4 to 5 percent growth in gross domestic product (GDP) in order to see employment increase. Most economists, however, only predict GDP growth of around 2.5 to 3 percent—just enough to maintain current job levels.

I don't believe that we are bound to see such anemic growth, not if we take concrete actions to provide a stable business environment in order to encourage new investment.

Last week, President Obama proposed a new economic stimulus program including a call for the complete elimination of capital gains taxes on small businesses and a new tax credit for businesses that add or keep employees. While I applaud the President for this proposal, many Republicans encouraged him to take the same action in the first stimulus package. Capital fuels business growth and removing this burden from small businesses frees them to create new ventures and to move into new markets.

I was also encouraged that the President this week invited House Republican Leadership for a meeting at the White House to work together on a jobs plan. The leaders presented the President a plan that would not require more government spending and debt.

The first order of business should be to stop proposed new government regulations that would cost jobs. It's been said that when you’re on the wrong road, the best way to make progress is to turn around. We need to stop government bureaucrats from crafting job-killing regulations, and we need to hold off on bad legislation.

Last week, the House of Representatives considered a 1,300 page bill to further entangle the government in business. The new Consumer Financial Protection Agency created in the bill will have the authority to impose new taxes and fees without prior approval from Congress. The specter of new red tape and resource-draining taxes does not contribute to healthy environment for job growth.

Instead of winding down the government bailouts that have infuriated taxpayers, this bill will create a new permanent authority with the power to dole out money to businesses too big to fail. This authority is funded by a $150 billion tax increase on financial firms. A permanent bailout program will only further encourage crony capitalism and excessive risk taking for which the American taxpayer ultimately foots the bill.

Uncertainty of on-again, off-again tax cuts is also holding back business owners from moving forward. The coming expiration of the 2001 and 2003 tax cuts make long term planning difficult. Hiring new employees is both expensive and risky, and businesses need a clear path forward to increase unemployment. Waiting until the 11th hour to extend these cuts will only increase uncertainty over the coming year.

Unemployment insurance helps workers transition to a new job. However, we need to make sure that these programs do not become a new form of welfare. Republicans support programs that help place unemployment recipients in real part time jobs with real employers while they are looking for full time work.

For example, in Georgia this program has resulted in faster returns to work, less unemployment payments, and lower state unemployment taxes. The individuals receive their unemployment check and a stipend for transportation and child care, but most importantly they maintain job skills.

I hope that the President maintains an open dialogue as he moves forward on a new jobs plan. Bipartisan solutions will only encourage confidence in the direction of the economy. While I don't believe that government can create new jobs, we can create an environment that either encourages or discourages business owners and investors to take the risks that create private sector jobs and grow their businesses.

U.S. Rep. Joe Pitts represents Pennsylvania's 16th Congressional District, which includes parts of Berks, Chester and Lancaster counties.