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E-news 4/5/12

The Week Just Past:  USA’s Corporate Tax Rate Hurts USA Jobs

Hospitals Struggling to Survive

How Health Care Law is Paid For

Bipartisan STOCK Act Becomes Law

Meeting our Mayors

Army’s #2 Official Visits Picatinny, Morris County

 

The Week Just Past:  USA’s Corporate Tax Rate Hurts USA Jobs

“You may not have seen the notices, or if you did, you might have thought it was an April Fool’s joke. But last Sunday, the United States claimed the title of ‘Highest Corporate Tax Rate in the Industrialized World.’

“We earned this dubious distinction when Japan officially dropped its rate below the U.S. rate of 39.2 percent.

“According to the Organization for Economic Cooperation and Development, the average 2012 corporate tax rate for the 34 developed countries is 25.4 percent. Even Russia (20 percent) and China (25 percent) have lower rates than America does.

“Why is this important? Because the difference in corporate tax rates means our American companies are struggling to compete with one hand tied behind their backs. It’s common-sense that high corporate tax rates repel, rather than attract, foreign companies and investment and can even send domestic firms fleeing overseas.

“But, don’t take my word for it. The Business Roundtable cites a move by England to cut their tax rates from 28 percent to 22 percent, which their officials called ‘an advertisement for investment and jobs in Britain.’

“There’s no doubt that our high corporate tax rate is a self-inflicted wound to our competitiveness. We need to allow our companies to ‘get in the game’ by reducing this job-killing corporate rate. But beyond that, we need comprehensive tax reform which lowers rates and closes loopholes if we are going to remain a leader in the global economy.

“These are key pillars of my ‘Action Plan’ to create private sector jobs in the real economy.   Visit my website at frelinghuysen.house.gov to review the entire proposal.

“14 million Americans are without jobs, many for over a year. Higher taxes, record spending, and bigger government has failed to create jobs or boost economic growth. Put simply, a lack of consumer confidence and business certainty is hampering the recovery. Washington has tied the hands of small business owners and job creators with onerous regulations and irresponsible fiscal policies.

“We need common-sense, pro-growth policies and we need to remove Washington as the roadblock to job creation.

“Washington can start by lowering the corporate tax rate and allowing some other nation to claim the title of ‘Highest Corporate Tax Rate in the Industrialized World’ and repealing many of the punitive aspects of the new health care law passed two years ago!”

                                                Rodney Frelinghuysen

Recommended Reading: Robert Pear’s story in the Tuesday New York Times provides a window into the new health care law’s effects on hospitals struggling to survive. Read “Regulator Orders Hospitals to Undo a Merger in Ohio” here.

Timely Reminder: As the U.S. Supreme Court deliberates on the constitutionality of aspects of the President’s new health care law, there is little dispute about the impact the law will have on programs important toall Americans, especially seniors.  Visit Rodney’s website for more detail.

Also, click here to read CNN's article regarding the Administration's acknowledgment that federal courts have the authority to review the law.

Bipartisan STOCK Act Becomes Law

Yesterday morning, the President signed the bipartisan STOCK Act into law. This measure reached the White House thanks to the hard work and commitment of both parties to strengthen rules banning insider trading and make clear that elected officials and their staff are living under the same rules as everyone else.

“Of course, insider trading is already prohibited under the rules of the House of Representatives,” Rodney said. “But, the STOCK Act strengthens existing law by requiring additional financial disclosures by Members of Congress and other government employees. I cosponsored and strongly supported this extra effort to restore public confidence.

“My colleagues from both sides of the aisle deserve credit for their efforts to increase transparency and accountability as we take a step to restore the public’s trust in the federal government. It’s about time their efforts resulted in a strong law.”

Recommended Reading: Jessica Silver-Greenberg’s story in the Tuesday New York Times,Small Banks Shift Charters to Avoid U.S. as Regulator,” shows some of the consequences of the Dodd-Frank financial regulatory law.

Meeting our Mayors

As is his custom, Rodney met with over two dozen mayors from around the 11th Congressional District this week. After Rodney provided a report from Washington on efforts to create private sector jobs and opportunities and reduce the budget deficit and rising gasoline prices, much of the dialogue centered on proposed Post Office closures, the lingering after-effects of flooding caused by Hurricane Irene and Tropical Storm Lee, student loans, health care reform and various localized issues.

Army’s #2 Official Visits Picatinny, Morris County

At Rodney’s invitation, the number two official in the United States Army visited Picatinny Arsenal this week, met with the workforce and was updated on the new United States Navy mission at the Arsenal.  The Secretary and Rodney were also briefed on the Army’s new light machine gun and sniper rifle being developed at Picatinny as well as the Soft Capture Recovery System, or “SCat Gun,” which is used to test developmental warheads and munitions. “The Secretary was impressed with this really innovative technology and the fact that it’s ‘home-grown’ by Picatinny’s own experts,” Rodney said.

Dr. Joseph Westphal, Undersecretary of the Army, also addressed a luncheon gathering of the Morris County Chamber of Commerce, telling the audience that the Army remains committed to Picatinny Arsenal and the region, “We want to make sure that your community flourishes and grows.”

The Undersecretary said that while the Army’s mission has been constant in preserving America’s peace and security, “we have continuously adapted our business model and product to keep up with the times.”

Rodney noted that Picatinny is a prime example of adaptability.  “As warfighter needs have changed since the early days of operations in Afghanistan, the men and women of the Arsenal have consistently and continuously risen to the occasion to make sure soldiers, Marines, sailors and Air Force personnel have the tools they need to accomplish their mission. The trademark of Picatinny has been adaptability, innovation and efficiency. Those traits were stressed to Secretary Westphal at every opportunity during his visit.”

Over 4,500 employees enter Picatinny through the Cannon Gates each weekday and their work is essential to a strong national defense.

Read Rob Jenning’s story in the Tuesday New Jersey’s Herald here.