2. The New 10TH District
mchenry.house.gov/District/understandingredistricting.htm
3.
4. Regulation Nation
The federal registry had
82,420 single sided pages of
regulations with a price tag of
$231 billion in 2011.
Source: American Action Forum
Image Courtesy of The Economist,
February 2012
7. Rising Regulations
The total number of regulations costing the
economy $100 million a year or more.
Source: Unified Agenda, Regulatory Information Service Center,
www.reginfo.gov/public/do/eAgendaMain
10. Crowdfunding, the Jobs Act, and More
• In the 112th Congress, the House of Representatives
has passed important legislation to roll back overly
burdensome regulations that are stifling job
creation.
– The REINS Act
– The JOBS Act
– The Red Tape Reduction and Small Business Job
Creation Act
12. Where Have You Seen Crowdfunding Before?
Donation Model Equity Model
-Many other countries,
-Funding for the Statue of
including Great Britain, Brazil,
Liberty
Hong Kong, and the
Netherlands already allow
- Karen Klein, 68 year old
equity based crowdfunding.
grandmother and school bus
driver, was the recipient of
-U.S. crowdfunding provision
over $700,000 after being
signed into law this year and
bullied by students.
should take effect in 2013.
15. •Calculations are based on Joint Committee on Taxation (JCT) estimates of various tax
parameters reflecting expected inflation adjustments for 2013.
17. Taxing Small Business Not The Answer
Why shouldn’t we raise taxes on individuals who fall under the top tax
brackets?
•A large percentage* of small business owners file their taxes
individuals.
•A new report from Ernst and Young shows that increasing taxes on this
group will cost more than 700,000 American jobs.
•These businesses employ 54 percent of the private sector work force
and pay 44 percent of federal business income taxes.
•More than 20 million workers are employed by pass-through
businesses with more than 100 employees.
18. Explosive Growth of Spending Drives Fiscal Imbalance
Federal Taxes and Spending as a Percent of GDP
26%
HISTORICAL SPENDING
24%
AVERAGE = 20.3%
SPENDING
FY 2012
22%
OBAMA
BUDGET
20%
18%
16%
HISTORICAL TAX
TAXES AVERAGE = 18%
14%
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
19. CHART 9
WHAT DRIVES OUR DEBT?
(GOVERNMENT SPENDING AS SHARE OF ECONOMY)
25%
PROJECTED TAX REVENUE
20%
15%
MEDICARE
10%
MEDICAID & OTHER
HEALTH
5%
SOCIAL SECURITY
0%
1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080
SOURCE: CBO
20. CRUSHING DEBT BURDEN CONTINUES TO MOUNT
(DEBT HELD BY PUBLIC IN BILLIONS OF DOLLARS)
$25,000
$20,000
$15,000 OBAMA TAKES OFFICE
$10,000
$5,000
$0
2019
2020
2021
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2022
SOURCE: OMB OBAMA FY2013 BUDGET
22. CRUSHING BURDEN OF DEBT
(U.S. DEBT HELD BY PUBLIC AS A SHARE OF ECONOMY)
900%
800%
CURRENT PATH
700%
600%
500%
400%
300%
WORLD
WAR II
200% 2012
100%
%
1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080
SOURCE: OMB/CBO
23.
24. BROKEN PROMISE ON JOBS
11%
10%
ACTUAL
PRESIDENT’S NEW PROJECTIONS
9%
8%
PROJECTION WITHOUT STIMULUS
PERCENT
7%
PROMISE WITH STIMULUS
6%
5%
4%
SOURCE: REPORT BY CHRISTINA ROMER, CHAIR OF PRESIDENT’S COUNCIL, “THE JOB IMPACT OF AMERICAN RECOVERY AND REINVESTMENT PLAN” JAN 9, 2009;
DEPARTMENT OF LABOR.
3%
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1
2007 2008 2009 2010 2011 2012 2013 2014
25. Who Pays Taxes?
Percentiles Ranked by Percentage of Federal
AGI Personal Income Tax
Paid
Top 1% 36.73 %
Top 5% 58.66 %
Top 10% 70.47 %
Top 25% 87.30 %
Top 50% 97.75 %
Source: IRS
2009 Statistics Bottom 50% 2.25 %
26. CORPORATE INCOME TAX RATES
45%
40%
35%
30%
25%
20%
15%
10%
5%
%
JAPAN U.S. FRANCE SPAIN ITALY U.K. POLAND IRELAND
SOURCE: ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
$22.1 Billion: Estimated Cost of Major New Obama Administration Regulations. The Obama administration currently has 24 “economically significant” regulations in the works that will result in “$22.1 billion in costs and more than 2.6 million paperwork burden hours,” according to a recent analysis by the American Action Forum. $46 Billion: Estimated Cost of 106 Major Regulations that Have Already Been Implemented. According to the Heritage Foundation, “a total of 106 new major regulations have been imposed” by the Obama administration “at a cost of more than $46 billion annually, and nearly $11 billion in one-time implementation costs” – a five-fold increase over the previous administration.$515 Billion: Total Cost of More than 4,000 New Regulations in the Pipeline. The National Federation of Independent Business– the nation’s largest small business organization – says “the next four years could bring a tidal wave of costly federal regulations impacting U.S. businesses and consumers.” According to the NFIB’s analysis, “there are currently 4,128 federal regulations in the pipeline which, if implemented, will impose costs of more than $515 billion on the U.S. economy.”$10,585: Financial Burden Small Businesses Face Per Employee to Comply with Federal Regulations. According to the Small Business Administration, small businesses pay $10,585 per employee each year to comply with federal regulations – “36 percent more per employee than larger firms.”
According to a recent Chamber of Commerce Small Business Outlook Survey, 78 percent of small businesses surveyed report the taxation, regulation and legislation from Washington make it harder to hire more employees. Also, eight out of 10 say they would rather have Washington stay out of the way than provide a helping hand86 percent say they would rather have more certainty from Washington than more assistance (6%) to deal with theeconomy.**78% of small businesses surveyed report the taxation, regulation and legislation from Washington make it harder for their business to hire more employees. And, 74% say the recent health care law makes it harder for their business to hire more employees.
-Aimed at cutting government red tape to make it easier for small businesses to create jobs. - impose a moratorium on any new regulation, save for health and emergency, until unemployment drops below 6% nationally. -curtail so called “midnight regulations” and to highlight the preponderance of “sue and settle” agreements.Regulatory Freeze for Jobs Act of 2012 : -Prohibits any federal agency from taking any significant regulatory action until the Secretary of Labor reports that the Bureau of Labor Statistics (BLS) average of monthly unemployment rates for any quarter after the enactment of this Act is 6% or less.Defines "significant regulatory action" as any regulatory action that is likely: (1) to have an annual cost to the economy of $100 million or more or to adversely affect the economy, productivity, competition, jobs, the environment, public health or safety, small entities, communities, or state, local, or tribal governments (2) to create a serious inconsistency or otherwise interfere with another agency's action (3) to materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients (4) to raise novel legal or policy issues.Permits an agency to take a significant regulatory action notwithstanding such prohibition if the President determines by executive order that such action is necessary because of an imminent threat to health or safety or other emergency, necessary for the enforcement of criminal laws, necessary for U.S. national security, or issued to implement an international trade agreement. Provides for congressional approval of presidential requests for a waiver of such prohibition for other actions that do not meet such criteria but that are necessary to protect the public health, safety, or welfare.Allows judicial review of: any regulatory action taken in violation of this Act that adversely affects or aggrieves any individualany determination by either the President or the Secretary of Labor under this Act. Allows a court to suspend the granting of relief under this Act if the court finds by a preponderance of the evidence that the application or enforcement of a significant regulatory action is required to protect against an imminent and serious threat to U.S. national security. Sets forth provisions relating to: the allowance of reasonable attorney's fees for certain small businesses that prevail in any civil action arising under this Act the period for initiating a civil action under this Act.
Data from the Bureau of Labor Statistics indicates that thenumber of new business start-ups in 2010 fell to the lowest level since the data was first recorded in1994. Since 2007, there has been a 23 percent drop in new business creation.According to a recent Gallup poll, 48 percent of smallbusiness owners said they were not hiring due to concerns about possible rising health care costs,while 46 percent said they were worried about new government regulations.House Republicans have a Plan for America’s Job Creators, and it’s time President Obama and Senate Democratsstop blocking our bipartisan jobs bills. House Republicans know that to cut the unemployment rate we need tocut the red tape: House Republicans have approved dozens of bipartisan jobs bills that would provide relief from record amounts ofgovernment red tape, such as the REINS Act, the JOBS Act, the Red Tape Reduction and Small Business Job Creation Act, and repeal of President Obama’s health care law.In addition, we’ve approved legislation requiring the Obama Administration to consider the economic impact oftheir rules and regulations so the American people know the impact that Washington’s red tape is having on theeconomy.REINS Act - The REINS Act would require that Congress review and approve any new regulation expected to cost more than $100 million.JOBS Act – Removes outdated securities legislation that kept capital from flowing efficiently to small businesses and startups.The Red Tape Reduction and Small Business Job Creation Act – Among other things, it would impose a freeze on significant regulations that harm our economy until unemployment drops below 6% and also require independent agencies like the NLRB to comply with the same regulatory review requirements as other agencies (cost-benefit analysis).
What is crowdfunding?The basic idea is to raise money through relatively small contributions from a large number of people - combining the best of microfinance and crowdsourcing.Talk about why it’s so important/necessary **good for small businesses** Entrepreneurs, startups, and small businesses are overlooked by conventional lenders (local banks or venture capitalists, angel investors) and have a hard time accessing credit in today's marketplace. As a result, United States capital formation and entrepreneurs suffer.Today in the United States, internet-based crowdfunding is utilized to raise millions of dollars for charitable organizations and non-profits.Other nations - such as Great Britain, Hong Kong, and the Netherlands - already offer equity-based crowdfunding opportunities to investors and startups to spur capital formation.Entrepreneurs and investors in the United States that communicate through internet-based platforms and offer securities are subject to costly SEC registration requirements.Compliance with each individual state's securities laws and rules - known as "Blue Sky Laws" - is prohibitively costly if companies are seeking to raise only small amounts of money.
The Statue of Liberty was a completely crowdfunded monument. On the other side of the Atlantic, the French people contributed and paid for the statue itself. Here at home, our task was to pay for the base or pedestal of the statue. Schoolchildren across America began donating pennies and other everyone pitched in to raise the $250,000 needed. For instance, a kindergarten class in Iowa sent $1.35 to a fundraising effort run by newspaper publisher Joseph Pulitzer.After seeing the 10 minute video of Karen Klein being bullied, a Toronto man, Max Sidorov, was so moved by Klein's story that he started an online campaign with the goal of raising $5,000 to send her on a vacation. The fundraising site Indiegogo listed the total amount raised at $703,833. A spokeswoman for the site said more than 30,000 people contributed, with donations coming in from at least 84 countries and all 50 U.S. states.
Needs to be sourced
*According to the Joint Committee on Taxation (JCT), 95 percent of all U.S. non-farm businesses in 2009 were S corporations, partnerships, or sole proprietorships – “pass-through” business entities commonly used by small businesses that file their taxes on their owners’ individual Form 1040s and pay taxes at the individual tax rates. Also according to JCT, roughly half (46 percent) of total business income earned by all U.S. non-farm businesses in 2009 was earned by such pass-through businesses.
So what is driving this debt crisis? Right now, the government spends over a trillion dollars more than it takes in. 60% of this spending is autopilot spending on what are known as ‘entitlement programs.’ The explosive growth of spending in the years ahead is the result of these entitlement programs, along with the spiraling interest on the national debt. By the time today’s children are raising their own families, literally every single dollar we raise in revenue will go to pay for Social Security and government health care programs. This doesn’t include spending on the new health care law. It is basic math – we cannot solve our budget challenges unless we address the growth of our entitlement programs, specifically government spending on health care. Going forward, as the debt and the interest on the debt spiral out of control, government spending will nearly overwhelm our entire economy.
