Research Briefing

GOP Offers Proven Solutions For Job Creation, Economic Growth And Help For Families

GOP HAS REPEATEDLY OFFERED SOLUTIONS TO CREATE JOBS BASED ON CUTTING TAXES

JANUARY 2009: House Voted Down GOP Alternative Stimulus Package Made Up Of Tax Cuts. “The House voted down several Republican proposals, including a substitute package made up entirely of tax cuts for individuals and businesses. Republicans did not say how much their package would cost, although Mr. Boehner said it would be far less than the Democratic plan.” (Jackie Calmes, “House Passes Stimulus Plan With No G.O.P. Votes,” The New York Times, 1/28/09)

• OCTOBER 2009: Republicans Sent Letter To Obama Pushing For Tax Cuts In Order To Create Jobs. “House Republicans sent a letter to President Barack Obama today [to] … tout various members’ proposals that would: Give small businesses a tax deduction equal to 20% of their income; Let small businesses band together in associations to buy health insurance more cheaply; Curb civil lawsuits; Lower individual income tax rates; Expand health savings accounts, which are being squeezed in some of the current health-care reform proposals; Increase businesses’ ability to recover current losses by re-filing prior tax returns.”  (John D. McKinnon, “House Republicans Press Obama On Jobs Creation,” The Wall Street Journal’s “Washington Wire” Blog, 10/9/09)
• DECEMBER 2009:  House Republicans Gave Obama “No-Cost Jobs Plan” Centered Around No Tax Increases And Less Regulation.  “Minutes later, the House Republican leader, Representative John A. Boehner of Ohio, handed Mr. Obama a letter and a copy of what the House minority calls its no-cost jobs plan calling for no tax increases, new trade agreements and fewer regulations.” (Jackie Calmes, “A Testy Exchange at White House Over Jobs Proposals” The New York Times 12/9/09)

GOP Proposing Permanently Lowering Income Taxes Across-The-Board Because High Tax Rates Kill Jobs And Entrepreneurship. “The impact of the higher tax rates on the entrepreneurial sector is also particularly troubling. An often underappreciated feature of our tax system is that roughly one-third of all business taxes are paid by owners of flow-through businesses … when they file their individual tax returns. These businesses are an important source of innovation and risk taking.” (Robert Carroll, “The Economic Cost Of High Tax Rates,” Tax Foundation, 7/29/09)

• And Permanently Cutting Taxes On Capital Gains, Dividends And Payroll Across The Board Will Increase Economic Growth. “Cutting the tax rates on dividends and capital gains was found to increase output in the long run by 0.4 percent, primarily by expanding the capital stock and enhancing labor productivity … Cutting the top four wage tax rates caused even a larger increase, 0.7 percent, primarily by increasing labor supply.” (Robert Carroll, “The 2001 And 2003 Tax Relief: The Benefit Of Lower Tax Rates,” Tax Foundation, 8/23/08)

GOP’S ALL-OF-THE-ABOVE ENERGY PLAN WILL PROMOTE ECONOMIC GROWTH

GOP Has An “All Of The Above” Energy Plan That Would Develop Traditional And Alternative Sources Of Energy. “House Republicans today revived their ‘all of the above’ pitch on energy policy, putting out an energy plan built around increased development of nuclear, fossil fuels and alternative energy… On the conservation and efficiency front, the legislation provides tax incentives for alternative fuel vehicles, prizes for development of innovative energy technologies, and a series of business and residential tax incentives for energy efficiency. Additionally, the proposal lays out steps to speed up licensing for nuclear power plants, setting a target of building 100 new nuclear power plants over the next 20 years.” (Alex Kaplun, “House GOP Brings Back 'All Of The Above' As Response To Dems' Energy Agenda,” E&E, 6/10/09)

• Expanding Everything From Oil & Gas Production, Clean Nuclear Power And Renewable Energy Resources. “House Republicans are calling for 100 new nuclear power plants to be built in the next two decades as part of an energy plan they say is a better alternative than one championed by Democrats. The legislation unveiled by the GOP yesterday would also increase production of oil and gas offshore, open the Arctic National Wildlife Refuge to drilling, and spur refinery construction. The money from the new drilling would go into a trust fund that would pay for the development of renewable energy.” (“GOP Proposes 100 New Nuclear Plants,” The Associated Press, 6/11/09)

Increasing Domestic Oil And Natural Gas Production Will Create Millions Of Jobs. “The increased domestic oil and natural gas production would not only reduce future prices but also create thousands of energy industry jobs. The bill would also result in increased government revenues as energy companies must pay for the initial leases, royalties for the energy produced, annual rents, and income taxes on the profits. One study estimates that expanded offshore energy production could create 270,000 jobs and $16 billion in government revenues in the initial years, rising to over 1 million jobs and $87 billion in subsequent years as more and more oil and gas comes online.” (Ben Lieberman, “A Bipartisan Pro-Energy Bill,” The Heritage Foundation, 9/24/09)

AND GOP’S PATIENT-CENTERED HEALTH CARE PLAN WILL LOWER COSTS, IMPROVE QUALITY

Democrats Rejected A GOP Plan To Expand State High-Risk Pools, Which Would Guarantee Access And Affordable Care For People With Pre-Existing Conditions. “The House Republican bill would offer $15 billion to states to establish high-risk pools, for people who could not otherwise obtain coverage, and reinsurance programs, under which states act as a backstop to private insurers. Under a reinsurance program, a state pays a large share of the cost if claims — for an individual or a group — exceed some threshold. … Health policy experts say insurers can lower premiums if state reinsurance programs protect them against the risk of catastrophic costs.” (Robert Pear & David Herszenhorn, “G.O.P. Counters With A Health Plan Of Its Own,” The New York Times, 11/4/09)

CBO Confirms House Republican Alternative Would Have Lowered Premiums For Americans By Up To 10 Percent. “CBO estimates that the combination of provisions included in the amendment would reduce average private health insurance premiums per enrollee in the United States relative to what they would be under current law. The average reductions would be larger in the markets for small group and individually purchased policies, which are the focus of many of the legislation’s provisions. In the small group market, which represents about 15 percent of total private premiums, the amendment would lower average insurance premiums in 2016 by an estimated 7 percent to 10 percent compared with amounts under current law.” (Douglas W. Elmendorf, Congressional Budget Office, Letter To Honorable John A. Boehner, 11/4/09)

CBO Says Tort Reform Would Could Save $54 Billion Over 10 Years. “Congressional budget analysts said Friday that lawmakers could save as much as $54 billion over the next decade by imposing an array of new limits on medical malpractice lawsuits -- 10 times more than previously estimated.” (Lori Montgomery, “Tort Reform Could Save $54 Billion, CBO Says,” The Washington Post, 10/10/09)