Column Presented a Misguided Analysis
In response to Kevin Smith’s column in Sunday’s paper (June 12):
He is clearly under the misapprehension (common among liberals) that the government creates jobs. Sorry about that! Only the private sector creates jobs in a meaningful way. The failure of the Obama “stimulus” jobs bill to create jobs is a prime example of this fact.
He criticizes Speaker Boehner for not having produced a “jobs bill.” In fact, the GOP majority in the House produced a jobs bill shortly after the House came into session in January of this year. It was disguised under the title “the budget.” It spelled out in detail what the GOP would do to reduce the burden of taxes, spending, regulation and uncertainty that is currently being imposed on the private sector by the Obama administration.
He reverts to the favorite “soak the rich” liberal trope when he talks about CEO compensation when, in fact, tax revenues from highly compensated individuals increase when tax rates decrease — not vice versa.
Every significant recession in the past 50 years has been followed by rapid economic growth, which has been brought about by tax cuts (see Kennedy in the ’60s and Reagan in the ’80s as the best examples). The threat of higher taxes, excessive regulation (and the threat of more regulation) and, most of all, uncertainty are what is holding back a strong recovery.
U.S. businesses have a large supply of cash to invest to create jobs. Unfortunately, new investments are being made overseas, where the business climate is more favorable than it is in the United States.
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