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Town Hall with Congressman Patrick McHenry. August 2012. The New 10 TH District. mchenry.house.gov/District/understandingredistricting.htm. Regulations, Taxes and the Economy; Where do we go from here? A Fact – Based Discussion . Regulation Nation. - PowerPoint PPT Presentation
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Town Hall with Congressman Patrick McHenry
August 2012
The New 10TH District
mchenry.house.gov/District/understandingredistricting.htm
REGULATIONS, TAXES AND THE ECONOMY; WHERE DO WE GO FROM HERE?
A FACT – BASED DISCUSSION
The federal registry had 82,420 single sided pages of regulations with a price tag of $231 billion in 2011.
Regulation Nation
Image Courtesy of The Economist, February 2012
Source: American Action Forum
Small Businesses Entangled by Regulatory Onslaught
The Regulations Keep Piling Up
Source: Unified Agenda 1/31/2012
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
Businesses are Suffering
Source: US Chamber Small Business Outlook Study, April 2012
Rolling Back Red Tape To Spur Job Creation
Siliconangle.com
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
Crowdfunding = Small Business Growth
Where Have You Seen Crowdfunding Before?
-Funding for the Statue of Liberty
- Karen Klein, 68 year old grandmother and school bus driver, was the recipient of over $700,000 after being bullied by students.
-Many other countries, including Great Britain, Brazil, Hong Kong, and the Netherlands already allow equity based crowdfunding.
-U.S. crowdfunding provision signed into law this year and should take effect in 2013.
Donation Model Equity Model
The Fiscal Cliff – No Laughing Matter
What is the Fiscal Cliff?
January 1st, 2013
OUR PLAN = NO TAX INCREASES
$2,200 = Average Tax Hike on families of four earning 50,000$1,028 = Average Tax Hike for families with children$591 = Average Tax Hike for married couples$1,700 = Average Tax Hike for Senior Citizens earning 40,000• Calculations are based on Joint Committee on Taxation (JCT) estimates of various tax
parameters reflecting expected inflation adjustments for 2013.
I ALWAYS WANT TO HEAR FROM YOU,
ANY QUESTIONS?
Q & A
Taxing Small Business Not The Answer
“The last thing you want to do is raise taxes in the middle of a recession because that would just suck up, take more demand out of the economy and put business in a further whole.”
-President Barack Obama, August 2009
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.
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14%
16%
18%
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22%
24%
26%
HISTORICAL TAXAVERAGE = 18%
HISTORICAL SPENDING
AVERAGE = 20.3% FY 2012OBAMABUDGE
T
SPENDING
TAXES
Explosive Growth of Spending Drives Fiscal ImbalanceFederal Taxes and Spending as a Percent of GDP
1970 1978 1986 1994 2002 2010 2018 2026 2034 2042 2050 2058 2066 20740%
5%
10%
15%
20%
25%
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HealthMedicare
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PROJECTED TAX REVENUE
SOURCE: CBO
WHAT DRIVES OUR DEBT?(GOVERNMENT SPENDING AS SHARE OF ECONOMY)
CHART 9
$0
$5,000
$10,000
$15,000
$20,000
$25,000
CRUSHING DEBT BURDEN CONTINUES TO MOUNT
(DEBT HELD BY PUBLIC IN BILLIONS OF DOLLARS)
OBAMA TAKES OFFICE
OBAMA FY2013 BUDGET
SOURCE: OMB
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
DEFICIT UNDER OBAMA BUDGET(DEFICIT LEVELS IN BILLIONS OF DOLLARS)
SOURCE: OMB
OBAMA FY2013 BUDGET
CRUSHING BURDEN OF DEBT(U.S. DEBT HELD BY PUBLIC AS A SHARE OF ECONOMY)
1940 1948 1956 1964 1972 1980 1988 1996 2004 2012 2020 2028 2036 2044 2052 2060 2068 2076%
100%
200%
300%
400%
500%
600%
700%
800%
900%
SOURCE: OMB/CBO
WORLD
WAR II
CURRENT PATH
2012
BROKEN PROMISE ON JOBS
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q13%
4%
5%
6%
7%
8%
9%
10%
11%
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.
PERC
ENT
2007 2009 2010 2011 2012 20132008 2014
PROMISE WITH STIMULUS
PROJECTION WITHOUT STIMULUS
ACTUAL
PRESIDENT’S NEW PROJECTIONS
Percentiles Ranked by AGI
Percentage of Federal Personal Income Tax Paid
Top 1% 36.73 %
Top 5% 58.66 %
Top 10% 70.47 %
Top 25% 87.30 %
Top 50% 97.75 %
Bottom 50% 2.25 %Source: IRS 2009 Statistics
Who Pays Taxes?
Japan U.S. France Spain Italy U.K. Poland Ireland%
5%
10%
15%
20%
25%
30%
35%
40%
45%
SOURCE: ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOP-MENT
CORPORATE INCOME TAX RATES
Lowest Individual Rate Middle Individual Rate Top/Corporate Tax Rate0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
10%
25%
35%
19%
47%
66%
25%
63%
88%
200820502081
SOURCE: CBO
CHASING HIGHER SPENDING WITH TAXES(INCREASE IN TAX RATES NECESSARY TO KEEP PACE SPENDING)
