Sunday, May 24, 2015

A Democrat Who Cares About Small Businesses? That's OK, Republicans Will Defend Big Businesses

Joe Sestak with Jake Sternberger. Walking in Your Shoes to Restore the American Dream. New York, N.Y.: Infinity Publishing, 2015.

The authors believe people do not trust their government leaders. They seek to have their truest restored. Government is designed to protect liberties against too much government power. Faith in government will be restored when government limits its own powers.

Sestak, while serving his 31 years in the Navy , directed over $70 billion in operations. While serving in Congress for four ears, he became Vice Chairman of the Small Business Committee as he sees the key is how entitles are led.

The author write “the biggest barrier to an innovator with an idea is a lack of access to capital-not tax cuts-that is the mother’s milk for a start up.” The authors propose a 50% tax credit for small business investments, with a $1 million annual limit, on half of such investments over the business’s first five years.

The author advocate increasing the Rural Lender Advantage Loan that guarantees 85% of a maximum of $350000 financing to a new maximum of $500,000.

The authors are concerned about the amount of paperwork businesses have to file for reports, especially as this impact more the smaller businesses. They argue for a tier system of regulations and regulatory paperwork where fees and costs would be less for smaller businesses.

The authors note the Export Import Band helps over 250 Pennsylvania businesses supporting 35,000 jobs.

98% of manufacturing firms have under 50 employees. Over a quarter of these are in the green energy filed.

There are tax credits for natural gas extraction. This is known as the “Halliburton exemption.

The authors argue that the Research and Development Tax Credit, which has been extended 15 times since 1981, should be made permanent.

The authors support infrastructure investment. Highway Trust Fund solvency is key. This could be done with a gas tax hike or with innovation taxation such a a milage based tax instead of a gallon based tax. This makes sense as fewer cars use gas. The tax could be assessed according to odometer readings at inspections. Public-private partnerships, the author argue, more attract more infrastructure investments.

Rural areas need high speed Internet, the authors note. This is key in Pennsylvania which was 2.7 million rural residents. This makes Pennsylvania the state with the thrid largest rural population.

The authors believe the minimum wage should be half the average hourly wage. Studies show wages below that do not create job losses. Low wage employers will continue hiring employees as long as they earn profits doing so.

Many companies create a shell corporation in a tax haven such as Bermuda or Holland, create a presence in Ireland where there are large subsidies, an then sell licensing fees to their Dutch or Bermudan company to avoid paying taxes. The author calls for incentives to bring back these funds back to America.

The authors agree with lower corporate tax rates et argue there would then have to be an end to tax loopholes.

The authors argue for investments in training employees. There should be more human capital training programs.

The ACA health program has reduce per capita health care costs, increased insurance rate competition, and has provided new insurance to the 60% of enrollees who previously did not have health care insurance This has reduced the costs of Medicare such that the Trust Fund as 13 more years of projected solvency.

There needs to be more quality health care rather than more quantity of health care, the authors argue.

The “pay for delay” where brand name pharmaceuticals pay generic brand pharmaceuticals not to produce should be ended, the author propose. This cost customers.

Immigrants who receive diplomas should be green cards, not be sent home, the authors  recommend. We need their skills here.

The U.S. has incarceration rates higher than Russia or China. We need to create better second chance opportunities for people reentering society.

The authors argue for more research and clinical trials on Alzheimer disease.

There need to be student-centric testing that guide learning instead of having teachers test towards tests to avoid funding penalties, the authors propose.

The authors support national service. They see this as a great return to the public at low costs.

There are growing economies worldwide. It ins noted Brazil has brought 40 million people out of poverty.

China has not respected intellectual property rights, denies its labor protections, and they discriminate against American companies, the authors note.


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