And once again, I have to remind you that that the White House promised that the jobless rate would not exceed 8 percent once his stimulus bill was enacted.
UPDATE 3:45pm CDT:
A couple of organizations issued press releases about this morning's announcement:
First from StopTheHIT:
Washington, D.C. (April 6, 2012) – Today, the U.S. Department of Labor announced unemployment remained largely static at 8.2 percent and added only 120,000 jobs, significantly less than was expected. The nation’s employment climate continues to leave small businesses lacking the confidence to hire as the looming Health Insurance Tax (HIT) threatens to further inhibit their ability to create jobs down the road.And now the RATE Coaltion:
The Stop The HIT Coalition issued the following statement:
"Today's jobs report should serve as a reminder that the small business community will face a job-killing tax in 2014 unless Congress acts now to repeal the detrimental, unnecessary cost. The HIT is already creating a crisis of confidence by stifling job growth at the small business level, and the ability to create jobs will necessarily become harder if this tax is not repealed. At a time when job creation is not moving quickly enough, our nation’s top providers of private-sector jobs - small businesses - need all the relief they can get."
A recent Gallup survey of small businesses found that found 85 percent had no plans to hire new employees with nearly half citing increased health care costs as the primary reason. The Stop the HIT Coalition is actively working to repeal the HIT, which has generated an outcry from small businesses across the country seen at small business events and roundtables, numerous Op-Eds and through voice cards sent to members of Congress in their districts and in Washington, D.C.
- The HIT will have devastating effects on our economy, including:
- The loss of nearly 250,000 U.S. jobs by the year 2021; $30 billion dollars in lost sales by the year 2021;
- The take home pay for an average small business employee with a family plan reduced by $500 less per year.
Legislation to repeal the HIT has garnered bipartisan support in Congress with numerous national business leaders calling on leadership to pass the bills. Senators John Barrasso (R-WY), Orrin Hatch (R-UT) and Olympia Snowe (R-ME) introduced "The Jobs and Premium Protection Act," and Rep. Charles Boustany (R-LA-07) introduced companion legislation that has more than 123 bipartisan cosponsors.
The Stop The HIT Coalition represents the nation's small business owners, their employees and the self-employed who are actively working to repeal the Health Insurance Tax. Since the Coalition's formation in May, it has grown to include more than 35 national organizations, representing millions of small business owners across the country. Learn more at www.StopTheHIT.com.
WASHINGTON, D.C. (April 06, 2012) – March's employment figures show that the economic trends of the last few months are continuing, as 120,000 jobs were added and the unemployment rate decreased to 8.2 percent. The RATE Coalition Co-Chairs, Jim Pinkerton and Elaine Kamarck, issued the following statements on the necessity of comprehensive corporate tax reform.Technorati tags:
"The positive figures are evidence of the strength of the U.S. economy, despite having the world's 'leading' corporate tax rate," explained Elaine Kamarck, Co-Chair of the RATE Coalition and former adviser to President Bill Clinton and Vice President Al Gore. "Corporate tax reform would boost the economic recovery and job creation. The growing momentum among lawmakers for tax reform is encouraging, but action needs to be taken in order for the economy to grow at its potential."
"Today's news is further evidence of modest but uneven economic growth, and that's encouraging. However, growth is too slow to help the millions of Americans who are unemployed and underemployed. Indeed, for as long as the U.S. holds the distinctly dubious distinction of having the highest corporate tax rate in the world, it's hard to be optimistic about a robust recovery," said James P. Pinkerton, Co-Chair of the RATE Coalition and former White House domestic policy adviser to Presidents Ronald Reagan and George H.W. Bush. "If policymakers fail to reform the corporate tax system, the U.S. will be at a chronic disadvantage relative to international competitors, and our job growth will continue to be disappointing."
On April 1 Japan decreased its corporate tax rate, making the U.S. the heaviest taxer of corporation among all developed economies. Leading economists have demonstrated that an anti-competitive and elevated rate slows job creation, is a disincentive to investment and encourages companies to move overseas. Studies show that high corporate taxes:
[1] Kevin Hassett & Aparna Mathur. "Spatial Tax Competition and Domestic Wages," American Enterprise Institute. 2010
- Depress wages. Wage data from 65 countries over 25 years show that every one percent increase in corporate tax rates leads to a 0.5-0.6 percent decrease in wages. [1]
- Force workers to bear up to 75 percent of the burden of the corporate income tax. In the U.S., this equates to lower wages and benefits of $100 - $200 billion at the average level of corporate taxes between 2000 through 2010. [2]
[2] Robert Carroll & Thomas Newbig. "The Economic Benefits of Reducing the U.S. Corporate Income Tax Rate," Ernst & Young. 2011
About RATE Coalition:
RATE is a coalition of 25 companies and organizations advocating for sensible corporate tax reform. Making the tax code fairer and simpler will help spur job growth and stimulate the U.S. economy, and make us more competitive globally. RATE members currently include: AT&T, Altria Client Services Inc., Association of American Railroads, Boeing, Capital One, Cox Enterprises, CVS Caremark, FedEx, Ford, General Dynamics, Home Depot, Intel, Kimberly-Clark, Lockheed Martin, Macy's, National Retail Federation, Nike, Raytheon, Texas Instruments, Time Warner Cable, T-Mobile, UPS, Verizon, Viacom and Walt Disney. RATE members and affiliated companies represent over 30 million employees in all 50 states and support innumerable numbers of suppliers and small businesses. More information about the coalition is available at www.RATEcoalition.com.
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