It's time to get serious about jobs
The New Mexican
Posted: Saturday, March 06, 2010
- 3/7/10
     
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For too long the feds have been wasting time and our money in trying to end the recession by propping up public-sector jobs. The result has been to increase the size of government at all levels to the detriment of the private sector. It is time for another approach to job creation. I propose a free-market solution.

Congress needs to make the soon-to-be-expiring tax cuts permanent, including the inheritance tax. Also, in order to reduce prices for consumers, Congress needs to reduce all tariffs to zero. Tariffs only increase prices for locally produced goods. Some say they help nascent industries to get up to speed. However, more often it is mature industries that get a benefit. In addition, the corporate income tax needs to be eliminated. This will make exports more competitive on the world market, which will increase jobs. To make more capital available for investment, the capital-gains tax should also be eliminated; that, too will increase jobs. Another result of these actions will be the increase in tax revenue, as has been demonstrated many times in the past.

Along with the above actions, Congress needs to severely cut spending. A good start would be to get out of areas that are not allowed by the Constitution. (It is time for all citizens to read, or reread the Constitution to know what this governing document says with regard to the powers granted.) If the tax cuts from the previous administration had been accompanied by cuts in spending we would not be in the mess we are in currently, or at least the severity would be lessened.

Corporate welfare needs to be eliminated as well. Many actions by government to "help" businesses serve mainly to restrict entry to new businesses that will compete with the recipients of the aid. If an existing business has lost its ability to compete in a free market, it should be allowed to go away to free up capital for more efficient firms.

Finally, Congress needs to rethink the role of the Federal Reserve Bank and how it may be exacerbating the current problems.

Paul Morrison was recently elected chairman of the Santa Fe County Republican Party.






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