published Monday, August 12th, 2013

Smith: Grand Bargain: Campaign promise or inadequate cut in taxes

By Robin Smith

Events in politics don't occur in isolation. There are always strings attached.

The announcement of the "Grand Bargain for Middle Class Jobs" captured headlines late last month as President Obama visited Chattanooga.

But what exactly is in this expansive offer?

The most notable of terms included a reduction of America's corporate tax rate from the current 35 percent to 28 percent, with a further reduction to 25 percent for corporations involved in manufacturing.

These actions would increase our GDP by more than 2 percent with increasing wages by "nearly as much" and a boost in capital investment "by more than 6 percent" according to the nonpartisan Tax Foundation.

In the global arena of commerce and competition, other nations have the advantage and draw business and jobs away from the United States on this front.

According to Deloitte's listing of 2013 corporate tax rates, China taxes corporations at 25 percent, Canada at 15 percent, Mexico at 30 percent, Germany at 15 percent, Taiwan at 17 percent, Israel at 25 percent, South Korea at 22 percent and Japan at 25 percent.

What nations have higher corporate tax rates than the 35 percent? Angola, Cameroon, and Guyana.

But "85 percent of all new jobs" come from small companies, as reported by Investors Business Daily, and are taxed, not at the corporate rate, but the individual tax rate of up to 44 percent. IBD notes that the "bargain" will not benefit the true engine of our economy, small businesses.

The other issue that made this grand bargain more of a campaign promise was in the president's request to spend more money on stimulus projects.

Remember the $825 billion spent by government to "stimulate" the economy through the American Recovery and Reinvestment Act, signed into law on February 17, 2009.

What was the real impact of this spending on the need for jobs?

According to the Bureau of Labor Statistics, unemployment was at a "low" of 7.8 percent in January 2009, reaching a high of 10 percent in October of that year and not returning to that baseline of 7.8 percent until September 2012.

Stimulus spending did not create jobs. Stimulus spending did not improve America's economic standing.

Finally, Obama spoke of job training in his Chattanooga "grand bargain" remarks, noting the need to compete globally -- "with robust training and assistance measures ... we're going to have to sharpen our competitive edge."

The federal government has 47 job training programs. Legislation passed the U.S. House in March 2013 that would combine 35 of these programs, eliminating redundancy. And according to the legislation's sponsor, Rep. Virginia Foxx, R-N.C., the bill would "strengthen the role of state and local officials and job creators, allowing them to tailor programs to best fit their area's needs and job opportunities" by facilitating "greater collaboration with community colleges."

That sounds a lot like the path cut for success in Tennessee in business recruitment and expansion.

Ironically, the bipartisan companion legislation to this job training proposal passed the Senate Health, Education, Labor, and Pensions committee on July 31, the very next day after the President's grand bargain announcement.

The grand bargain is a real possibility if the individual tax rate is included to benefit small businesses and the 47 job training programs are effectively consolidated to produce results and state control.

But is the Grand Bargain only a campaign promise or is there an authentic desire to make a positive legislative effort to create jobs? The writer Ralph Waldo Emerson's is likely correct on this: "All promise outruns performance."

Robin Smith served as chairwoman of the Tennessee Republican Party from 2007 to 2009. She is a partner at the SmithWaterhouse Strategies business development and strategic planning firm.

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soakya said...

I'm glad Mrs. Smith can recognize the stimulus didn't work if she could only see what she and the republicans are doing in TN isn't working either, as a matter of fact their plan has created worse results.

August 12, 2013 at 12:15 a.m.
aae1049 said...

Oh no, A Republican suggesting that Obama jobs plan failure, that's hate language as far as the editors of the paper are concerned. Did you get their approval of your content. Don't you be saying nothing bad about Obama, you R woman. :-) Grounds for termination.

August 12, 2013 at 12:24 a.m.
conservative said...

Good job!

I have never met a Liberal who was not a Socialist and I have never met a Socialist who was not a Liberal.

Owebama is a Liberal and a Socialist.

Socialist need other people's money (taxes) to advance Socialism. There is not a chance not even one chance that Owebama would advocate a tax cut in one area unless he intented to raise/increase taxes (which he calls investment) in other areas.

Owebama intends more of your money to go to fund Socialism not less.

August 12, 2013 at 7:10 a.m.
daytonsdarwin said...

Don't forget it was Ms. Smith's Republican president Bush who started the bailouts. Don't forget it was Ms. Smith's Republican mentor, Zack Wamp, who supported and voted for the bailout.

So much for elephants never forgetting, or it is that politicians are forgetful-on-purpose liars?

August 12, 2013 at 5:16 p.m.
chet123 said...

ROBIN SMITH SERVED AS CHAIR OF REPUBLICAN PARTY 2007..2009...THIS IS ONE OF MANY PROBLEMS REPUBLICAN PARTY HAS......ROBIN SMITH TO REPRESENT WORKING-CLASS,MIDDLE-CLASS AND ANY FEMALE IS LIKE CLARENCE THOMAN REPRESENTING BLACK/AMERICAN.......

SHE IS A PUPPET FOR THE RICH AND GREEDY...THEY USE HER TO WINDOW DRESS....SHE MIGHT AS WELL BE A "WINDOW MANNEQUIN" FOR THE RICH AND GREEDY....A PUPPET WITH THE RICH AND GREEDY HAND IN HER BACK WORKING HER MOUTH.....

THIS PIN-HEAD OF A WOMEN IS THE BIGGEST BENIFICARY(AS A WHITE WOMAN) OF THE LIBERAL MOVEMENT WHERE PEOPLE DIED AND SHARE BLOOD TO HAVE EQUAL RIGHTS AND ACCESS TO THE AMERICAN DREAM(THE UNEDIBLE RIGHT)...WHILE SHE SAT ON HER FAT ROMP AND DID NOTHING..NOTHING!!....

SHE FORGET THAT LIBERAL MOVEMNT GAVE HER(AS A WOMAN) VOTING RIGHTS...ALLOW HER TO OWN PROPERTY....TO HAVE A JOB WITH EQUAL PAY....ALLOW HER TO HAVE CREDIT WITHOUT A MALE....ALLOW HER TO BE A FIRST CLASS CITIZEN....FAMILY LEAVE-ACT(BEING ABLE TO GO BACK TO WORK AFTER PREGNANCY)....LAW PROHIBITING EMPLOYMENT DISCRIMNATION BY SEX...ECT....I CAN GO ON ALL DAY....

August 14, 2013 at 12:40 p.m.
chet123 said...

THIS WOMAN HAVE THE GALL TO TALK ABOUT THE GRAND BARGAIN FOR MIDDLE-CLASS JOBS....WHEN HER PARTY HAS DONE EVERYTHING POSSIBLE TO BLOCK FINANCIAL RECOVERY OF THE ECONOMY....WHAT GALLS!!!!

BUT SHE DOES ADVOCATE THE REDUCTION OF TAXES FOR CORPORATION(AND SHIFT THEM ON THE POOR AND WORKING AND MIDDLE-CLASS)...EVENTHOUGH THE REPUBLICAN ADVOCATE A STRONG MILITARY.....

I WANDER IF THIS PIN-HEAD OF A WOMAN KNOW THAT A BATTLE SHIP COST IN THE BILLIONS....AND ALMOST THAT MUCH TO MAINTAIN....OR THAT A NUCLEAR SUBMARINE COST MANY BILLIONS,,,

August 14, 2013 at 12:55 p.m.
chet123 said...

DO SHE KNOW THAT THE FIGHTER PLANE FA-18 HORNET COST 94MILLIONS...THE EA-18G GROWLER COST 102 MILLIONS...HAVE SHE FACTOR IN THAT MILITARY TANK AS THE M1A2 ABRRAM COST OVER 6MILLIONS.....OR THE COST OF MILITARY MEN AND WOMEN IN BATTLE...INCLUDING THEIR LIVES(RICH AND GREEDY DONT FIGHT WARS)ONLY THE MIDDLE-CLASS,WORKING-CLASS AND POOR.

August 14, 2013 at 1:09 p.m.
chet123 said...

ROBIN IS A BALOON-HEAD TO EVEN ATTEMP TO COMPARE OUR CORPORATE TAXES TO ANGOLA,CAMEROON,GUYANA,CHINA,GERMANY,CANADA...HA HA HA......ITS AN OLD SAYING "ITS BEST TO BE THOUGH OF AS A FOOL THAN TO SPEAK AND REMOVE ALL DOUBTS....HA HA HA

MRS ROBIN...THOSE COUNTRY DONT TRY TO POLICE THE WHOLE WORLD AT THE TAX-PAYING MIDDLE CLASS EXPENSE. HA HA HA HA!!

August 14, 2013 at 1:17 p.m.
chet123 said...

PLEASE DONT TALK ABOUT STIMULATE...WHEN YOUR PARTY CRASHED THE ECONOMY....WHAT A PIN-HEAD!!!!!

August 14, 2013 at 1:19 p.m.
chet123 said...

SOAKYA...CONSERVATIVE..

THIS WOMAN IS YOUR GREAT HOPE AS A GOP/TEA-PARTY/REPUBLICAN PARTY....Hmm? HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA!

August 14, 2013 at 1:21 p.m.
chet123 said...

EVEN DAYTONDARWIN COULDNT STOMACH THIS PHONY LIE!!!!

August 14, 2013 at 1:25 p.m.
chet123 said...

AND WE DISAGREE ON ALMOST EVERYTHIG.HA HA HA!

August 14, 2013 at 1:26 p.m.
soakya said...

Chet, Could you explain your response to me.

August 14, 2013 at 1:31 p.m.
chet123 said...

HELLO SOAKYA....

August 14, 2013 at 2:07 p.m.
chet123 said...

ARE YOU HERE?????...I WOULD LOVE TO RESPONSE.....BUT I WONT YOU TO BE HONEST.....NOT INTO GAME PLAYING....I PROMISE TO RESPECT YOU!!!

BUT RESPECT GOES BOTH WAYS

I WOULD LIKE TO KNOW:

(1). ARE YOU REPUBLICAN

(2). BEFORE TALKING ABOUT STIMULATE RECOGNIZES THE FINANCIAL CRISIS OF 2007..2008(THE GREAT GLOBAL CRSIS OF 2008)THAT THE REPUBLICAN PARTY UNDER A REPUBLICAN PRESIDENT,REPUBLICAN CONGRESS AND REPUBLICAN SENATE CALLOUSLY DESTROYED A SURPLUS LEFT BY CLINTON...AND SPENT OUR COUNTRY INTO A DEFICIT

August 14, 2013 at 2:20 p.m.
chet123 said...

YOU SEE SOAKYA...IF YOU ARE SERIOUS...YOU WILL BE HONEST...IF THERE WAS NOT A 2008 FINANCIAL MELT DOWN....THERE WOULD BE NO STIMULATE...YOU CANT PRETEND(NO MATTER HOW MUCH YOU WOULD LOVE TO)THE 2008 MELT DOWN DIDNT HAPPEN...UPON YOU BEING TRUTHFUL...NO GAMES...THEN WE CAN TALK ABOUT AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 ALSO KNOW AS THE STIMULATE

August 14, 2013 at 2:26 p.m.
chet123 said...

WHAT HAPPEN TO SOAKYA??????

IS SHE ROBIN SMITH???

August 14, 2013 at 2:39 p.m.
soakya said...

Am I Robin Smith? Go back and read my first response on this thread and you will see I am criticizing not only Robin Smith but the entire republican party. look at my post criticizing the tax deals handed out here by the republican party.

That's the difference between me and most posters on here. The liberals will defend the democratic party even though this white house has only doubled down on what Bush did and created an even larger mess. If anyone's says he has not created a bigger mess they are dishonest.

The republicans loony as they may be are not as kooky as the liberals will defend bush and what the republican state of TN is doing here. And no I am not a member of the Tea party which I believe you and many posters on here might refer to as a tea bagger. I have even criticized mark west for standing against the union efforts but for remaining silent when TN and Chattanooga hand out these tax deals to VW and the like. I believe that's between the workers of VW and the union.

I think they are both the problem and I am criticizing both.

If you want to continue to think I'm Robin Smith that's fine with me.

August 14, 2013 at 4:34 p.m.
chet123 said...

SOAKYA...YOU ARE MORE MODERATE THAN I PREVIOUSLY THOUGHT YOU WERE...MY BAD....DONT LOOK FOR ANYONE TO AGREE WITH ME 100%...MY BEEF IS AGAINST THE RIGHT-WING NUTS....WHO CRITICIZES EVERYTHING WITHOUT A PLAN OF THEIR OWN.....

THE NUTS WHO PUT US IN THIS AWFUL SITUATION....I COULD KICK THEIR GREEDY BUTTS

SOAKYA,I APOLOGIZE TO YOU!!

August 14, 2013 at 9:55 p.m.
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