Friday, September 24, 2010

David Hall: ‘Small Business Job Act’ is a job killer.

Nashville, TN –David Hall, Republican nominee for Congress in Tennessee’s 5th District, commented on today’s events in the nation’s capital:

“I am looking forward to working with Republicans after November to return our country to fiscal sanity and common sense reform. And I am encouraged by the release today of ‘The Pledge to America.’ From what I’ve seen it is a positive initiative, and I suspect that I will sign on following a thorough review of it.”

“As far as the passage of the so-called ‘Small Business Job Act,’ Jim Cooper may be thrilled with his vote, but this legislation is a job killer not a job creator. When will Cooper and other Liberal Democrats in Washington learn the lesson that it is a combo of lower taxes and less government meddling–in short, ‘economic freedom’–that helps our economy grow and helps our economy create more jobs?”

“The jobs created by government–judging from the Stimulus bills these past few years, are jobs that pay $40,000 and cost taxpayers $400,000. Freezing spending at 2008 levels, as put forth in The Pledge, is a nice first step to ending the Democrats’ job killing policies. Heaven help us if we have to endure two more years of spendthrift Democrats in control of the Congress.”

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  1. Man, you have to love the casual nature of these speeches, that allows them to make all sorts of claims without a shred of citation!

    For another, the stimulus wasn't solely about creating jobs, it was about kick-starting the economy, infusing it with cash at the middle-class level, to stimulate spending and this invigorate the demand of the supply/demand ration!

    If he has some sort of proposal about which laws he wants to rescind for "small business", then let him tell us. I would love to hear them! So far, it's empty talk, like a lot of political pandering going on now!

  2. As for the small business act that just passed, here's what it does, and I don't know how he can honestly call it a "job killer" with any shred of integrity and intellectual honesty:

    The Small Business Jobs Act authorizes the creation of a $30 billion fund run by the Treasury Department that would deliver ultra-cheap capital to banks with less than $10 billion in assets.
    Another provision aims to increase the flow of capital by providing $1.5 billion in grants to state lending programs that in turn support loans to small businesses.
    The bill would also provide a slew of tax breaks that will cost $12 billion over a decade, according to a preliminary estimate from the Joint Committee on Taxation. The breaks aim to encourage small businesses to purchase new equipment, to incentivize venture capital firms to invest in small businesses, and to motivate entrepreneurs to start their own business.

  3. There are quite a few tax breaks:
    100% exclusion of capital gains
    Carry back provision extended to 5 years
    Increase of Section 179: To motivate companies to go spend money on equipment, "Section 179" of the tax code allows businesses to write off capital expenditures immediately, putting cash in a company's pocket quickly.
    Bonus depreciation extension
    Help for start-ups: Currently, entrepreneurs can deduct up to $5,000 in start-up expenses. That amount is reduced by the amount that the start-up's expenses exceed $50,000. The bill would increase the deduction to $10,000 for 2010, and the deduction would be reduced by the amount that an entrepreneur exceeds $60,000.

    So I can see how all that's a job killer, yeah! /sarcasm off Sheesh!

  4. As for the job creation, at least in the story that's going around of late:

    I don't know if he is referring to the audit of the LA stimulus spending, but just for the record:

    a recent Los Angeles audit of some stimulus funds the city has received to falsely claim that each stimulus-funded job in LA cost the taxpayer an average of $2 million per job. In fact, the controller's office noted that not all of the funds have been spent yet, additional jobs are expected, and moreover, such cost-per-job estimates are "highly misleading," as they do not capture the full impact of the stimulus.

    Two L.A. departments have thus far "created or retained 54.46 jobs" from "$111 million in federal stimulus funds" but expects to create 264.14 jobs total. According to the L.A. controller's press release, both the Department of Public Works (DPW) and the L.A. Department of Transportation (LADOT) expect to create 264.14 jobs from the $111 million they have received once all the money has been spent:

    LADOT spent has only spent $1.8 million of its $40.8 million; expects to create 26 jobs total.

    L.A.'s DPW has only spent $5.24 million of its $70.65 million; expects to create 238.14 jobs total.

    LADOT did not include jobs that were created on "contracted out" projects.

    Cost-per-job calculations of stimulus effects are "highly misleading,"' ignore "indirect employment."