Cardon on President Obama’s State of the Union Address

FOR IMMEDIATE RELEASE: January 24, 2012
CONTACT: Katie Martin

Cardon on President Obama’s State of the Union Address: The President’s ‘Say One Thing But Do Another’ Mentality Must Stop

President claims he wants job creation on heels of killing 20,000 American jobs!

Phoenix, Arizona – Following this evening’s State of the Union address by President Barack Obama, Mesa businessman and candidate for U.S. Senate, Wil Cardon, issued the following comments:

“President Barack Obama addressed a nation that is suffering from record high unemployment and an economic climate that is full of uncertainty. Arizona, along with the entire nation, is looking for assurance from the president during these bleak economic times. Instead, Arizonans received more of the same partisan rhetoric that leads to inaction from the president and our do-nothing Congress. As we watch our families, friends, and neighbors struggle to make ends meet, Washington continues to offer fluffy speeches that theorize about job creation instead of listening to those who have experience in creating jobs.

Wil Cardon has repeatedly called on President Obama to stop worrying about pandering to his political party and urged the president to lead our country.

“Tonight, President Obama called for the creation of American jobs and an American energy initiative. This pro-job, pro-energy independence message comes just a week after the president blocked the Keystone XL Pipeline which killed 20,000 jobs and hindered America’s ability to become independent from Middle Eastern oil. The president’s ‘say one thing but do another’ mentality must stop. We can’t allow his ideologically-driven agenda, which panders to the extreme of his party, continue to crush small business in this country.

“The career politicians in Washington are tone deaf to what is happening in our communities and they are failing our nation. I am running for the United States Senate because in my family we have a saying which is, ‘leave things better than you found them.’ For the first time in the history of our great country, we are in danger of being the first generation that leaves things worse. I don’t know about Congress or President Obama, but that is unacceptable to me. Now is the time to send a new generation of leadership to Washington.”

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Salmon Kicks-Off East Valley Jobs Tour

FOR IMMEDIATE RELEASE: January 24, 2012
CONTACT: Adam Deguire

Will visit local businesses to discuss ways to create more Arizona jobs 

EAST VALLEY – Former Congressman and candidate for Arizona’s 5th Congressional District Matt Salmon today announced the launching of an East Valley Jobs Tour. The tour, which kicks-off today with a stop at Phoenix-Mesa Gateway Airport, will include visits to locally owned businesses in the East Valley to speak with owners and employees about the challenges facing the local economy and ways to create more Arizona jobs.

“With our local economy continuing to struggle, Arizona job creators need to know they can rely on their Representatives in Washington to serve as partners, not obstacles, to the business community,” said Salmon. “As a former Congressman and state senator, I have a proven record of cutting taxes on small businesses and loosening up the regulation that strangles businesses from growing and prospering. I am excited to meet with the business owners and workers from the East Valley and discuss ways Congress can help stimulate our economy and get us back on the road to prosperity.”

About Matt Salmon
Matt Salmon was first elected to the United States Congress in 1994 and served until 2000, honoring his term limit pledge. A proud conservative, Salmon was rated in the top five among all 535 members of the House and Senate by Citizen’s Against Government Waste for all six years he was in office. He is a lifetime member of the NRA with an A+ rating and also earned a 100% rating by the National Right to Life. He was also the proud recipient of the American Cancer Society’s “Top National Elected Official” award.

Matt Salmon has received the endorsements from Arizona Congressman Trent Franks, former Arizona Congressman John Shadegg, Maricopa County Sheriff Joe Arpaio, Mayor Scott Smith (Mesa), Mayor Jay Tibshraeny (Chandler), Mayor Hugh Hallman (Tempe), Mayor John Insalaco (Apache Junction), Mayor Gail Barney (Queen Creek), Former State Senator Chuck Gray, Arizona State Senate Majority Leader Andy Biggs (LD22), State Senator John McComish (LD20), and State Representatives Eddie Farnsworth (LD22), Jeff Dial (LD20), and Bob Robson (LD20). Salmon has also been endorsed by South Dakota Senator John Thune, Oklahoma Senator Tom Coburn, and Congressman Darrell Issa (CA-49).

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CD-9 Travis Grantham Criticizes Obama on Rejection of Keystone XL Pipeline

FOR IMMEDIATE RELEASE: January 19, 2012
CONTACT: Evan Kozlow

Tempe – Travis Grantham, candidate for Congress in Arizona’s new 9th Congressional District released the following statement today following President Obama’s decision to reject the Keystone XL Pipeline:

“It is inexcusable that President Obama has chosen partisan politics over the people of the United States by rejecting the Keystone XL pipeline project. President Obama and his entire administration have shown that special interests far outweigh the needs of the American people in regards to job creation, national security, and reducing our dependency on foreign oil.

The Keystone XL pipeline would have created approximately 20,000 new jobs for American workers throughout the country and into the Gulf of Mexico while bolstering our national security and our economy. I’ve witnessed firsthand the sacrifice that our troops are making on a daily basis defending our foreign sources of oil due to our lack of domestic production. With the rejection of the Keystone XL pipeline, President Obama has further solidified our dependence on foreign sources of oil and has dealt a major blow to the United States of America’s domestic energy production.

The United States is facing an unprecedented economic crisis in addition to an energy crisis that can no longer be ignored or pushed off to the next generation. President Obama has put his special interests well ahead of America’s on this day. The American people deserve far better leadership out of Washington than what is being exhibited now by both our Congress and our President.”

Travis Grantham is a candidate for Arizona’s Ninth Congressional District. He serves as the Chief Operations Officer at International Air Response based at the Phoenix Mesa Gateway Airport. He is also a Captain and Pilot in the Arizona Air National Guard’s 161st Air Refueling Wing based out of Sky Harbor International Airport. Travis and his wife Patricia have two daughters.

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Eliminating state capital gains tax could spark an entrepreneurial surge

By Stephen Slivinski

An important driver of job growth is investment. Without investment, new businesses may not flourish or even see the light of day. And venture capital investment in technology start-ups is one of the highest-profile sources of new business births.

Tax policy can either obstruct the new capital that businesses need or it can step out of the way and allow thousands of flowers to bloom. A number of studies have shown that taxes on capital gains – the return an entrepreneur or investor receives on their investment – have been shown to be a barrier to entrepreneurship and the job growth it creates.

Capital flows where it can find high returns and low barriers to allocation, and businesses in states with lower capital gains taxes receive more investment than their higher-tax counterparts. A 1998 study by Harvard University professors Paul Gompers and Josh Lerner concluded that entrepreneurial activity is sensitive to the taxation of capital gains. In particular, the authors found that a reduction in capital gains taxes is associated with an increase in venture capital funding in a state.

A 2010 study by William Gentry of Williams College came to the same conclusion. His paper noted that “capital gains taxes could distort a number of important decisions of entrepreneurs. These decisions include starting a new business, expanding the business, and obtaining outside financing; the capital gains tax can also affect whether and when an entrepreneur sells his or her business.”

Arizona, like most states with an income tax, treats capital gains as “normal” income and taxes it at the same rate as all other income. But nine states, including New Mexico, tax investment at a lower rate than their standard income tax.

In the material released after the State of the State speech, Governor Brewer indicated she understands that Arizona needs to lower its tax barriers to capital investment – an important step. But the governor and legislature should go further and eliminate the tax on capital gains altogether.

Arizona can be the first state with an income tax to do that and could, as a consequence, end up being a hub for new venture capital activity.

Stephen Slivinski is a Senior Economist with the Goldwater Institute.

Learn more:

American Council for Capital Formation: Capital Gains Taxation and Entrepreneurship

Harvard University: What Drives Venture Capital Fundraising? (PDF)

American Action Forum: Employment Effects of Reducing Capital Gains Tax Rates in Ohio

Do police officers pay for release time?

By Taylor Earl

The Goldwater Institute recently filed a lawsuit challenging Phoenix’s “release time” practice that sends six city police officers to work as full-time union managers, 35 to work as part-time union representatives, and one to work as a union lobbyist. Although these employees are released from city duties to perform union duties, taxpayers continue to pay the officers’ salaries and benefits.

The city and the union say this practice doesn’t waste taxpayer money because it’s police officers who pay for the release time by foregoing higher pay and benefits in exchange for release time.

But that isn’t true.

The city doesn’t consider release time a trade off for lower officer salaries – until recently the city council didn’t know release time existed. The city grants release time simply because it’s been buried in the city’s contracts with the unions since the 1970s.

And even if the city does grant release time in exchange for officers accepting lower pay, it doesn’t mean officers are funding release time. As long as the city signs the paychecks of officers doing union work, taxpayers are the ones who pay.

Officers would fare better if the city defunded release time and redirected the associated $950,000 per year to officer salaries. Then, individual officers could choose whether to keep their portion of the money or put it back into funding release time via union dues.

Of course, union bosses fear this idea — give officers direct control over the funding of release time, and they just might find that six full-time union managers and 15,000 hours of release time aren’t necessary after all.

Taylor Earl is a staff attorney at the Goldwater Institute’s Scharf-Norton Center for Constitutional Litigation.

Learn more:

Goldwater Institute: Cheatham v. Gordon

Goldwater Institute: “Money for Nothing: Phoenix Taxpayers Foot the Bill for Union Work

Governor Brewer Delivers State of the State Address, Unveils Policy Agenda for 2012 and Beyond

FOR IMMEDIATE RELEASE: January 9, 2012
CONTACT: Matt Benson

Releases Bold Plan to Boost Economy, Reform Education and Modernize Government

PHOENIX – Governor Jan Brewer today unveiled for 2012 and beyond a detailed policy agenda designed to prepare the State of Arizona for its second century. The policy agenda accompanied the Governor’s delivery of the Centennial State of the State address.

“Arizonans can take heart in how far this state has come from the darkest days of the recession and fiscal crisis, but now is no time to lose focus,” said Governor Brewer. “Every one of us benefits daily from the wise foresight and dedication of Arizona’s founders and great leaders of the past. Now, we have an obligation to make the tough choices that will set a prosperous course for Arizona’s second century.

“That means clearing the unnecessary obstacles to economic growth, and building an education system worthy of your children’s limitless promise. It means modernizing state government to ensure it is both efficient and effective, and protecting the rights of Arizona citizens against a federal government that has lost its way.”

The policy agenda reinforces and furthers the Governor’s Four Cornerstones of Reform, a blueprint to:

  • improve Arizona’s economic competitiveness;
  • bring needed reforms to K-12 and higher education;
  • modernize state government; and
  • push back against a federal government that has exceeded its constitutional authority.

Additional policy initiatives in areas like economic development will be announced in the days ahead as Governor Brewer issues her state budget plan for Fiscal 2013.

1st Cornerstone: Economic Competitiveness 

The economy continues to be a top concern for Governor Brewer, though the outlook has brightened considerably in recent months. The State of Arizona added nearly 46,000 jobs between 2010 and 2011, and its job growth ranked 7th-best nationally.

Governor Brewer now asks the Legislature to build upon last year’s signature economic initiative –

the Arizona Competitiveness Package – with a new effort to prepare unemployed and underemployed Arizonans for new careers and aid small businesses by simplifying the state tax code. The Governor also reiterated her support for the proposed I-11, a planned interstate highway that would promote tourism and trade between two of the country’s fastest-growing metro areas: Phoenix and Las Vegas.

Additional economic initiatives include:

  • Creation of a community-college scholarship program to help adults re-train and transition into careers that fulfill local needs.
  • A requirement that individuals enrolling in a taxpayer-funded job-training program undergo drug testing.

2nd Cornerstone: Education 

Arizona already has the framework in place for comprehensive education reform with the Arizona Ready initiative. This plan establishes more rigorous standards for students, teachers and schools, provides new methods for parents to gauge student achievement and monitor school performance, and sets yearly benchmarks to track Arizona’s education improvements between now and 2020.

Funding is part of the education equation, as Governor Brewer recognized with her successful push for Proposition 100 in 2010. She always pledged that the 1-cent tax would expire after three years. And it will, in 2013, as the Governor reinforced today.

However, Governor Brewer will remain part of ongoing discussions about proper funding for education in Arizona, and believes the current model does little to encourage innovation or performance on the part of teachers, professors and administrators.

Governor Brewer’s education plan includes initiatives to:

  • Implement performance-based funding for Arizona’s institutions of higher education, while reviewing and reforming Community College State Aid.
  • Produce a searchable database so that every parent can research the license and any disciplinary actions taken against their children’s teachers, and reform the teacher decertification process.
  • Lead a campaign this year to encourage involvement by parents in their children’s education.

3rd Cornerstone: State Government

The citizens of Arizona deserve a lean, effective and efficient State government.

Governor Brewer will create a Government Transformation Office, housed within the Department of Administration, which will be responsible for identifying process improvements and best practices to minimize redundancies and improve customer service. Governor Brewer also will pursue reforms that modernize the State personnel system, making it easier to hire and reward the most talented employees, while removing red tape that hinders removal of the least productive workers.

The State of Arizona has an obligation to vulnerable Arizonans, including the mentally ill and children under state supervision or care.

For the seriously mentally ill (SMI), planning already is underway for a pilot program that will integrate physical and behavioral health services for Medicaid-eligible SMI individuals. This approach is expected to result in fewer hospitalizations and less reliance on the crisis system.

In recent days, Governor Brewer was provided a series of recommendations by her Arizona Child Safety Task Force. While she continues to review those recommendations, the Governor proposes several child-safety initiatives for immediate adoption. They include:

  • Involvement of law enforcement in all Priority 1 investigations that contain allegations of criminal conduct.
  • Improvement of CPS caseworker training, both pre-service and continuing, including the training of CPS workers in law enforcement techniques.
  • Overhaul of the abuse hotline to improve screening, decrease wait times and expedite high-priority calls.
  • Introduction of Quality Management initiatives throughout CPS to streamline processes and improve outcomes for children.
  • Enhance transparency and accountability.

4th Cornerstone: Renewed Federalism

The State of Arizona has a long history of pushing back against federal overreach, and will continue to be a national leader among states seeking a return to a system of cooperative federalism. Governor Brewer will maintain the defense of SB 1070, and will remain a vocal opponent of mandates under the federal health care law. Both landmark cases will be heard this year by the U.S. Supreme Court.

With this past fire season the worst in Arizona State history, mismanagement of federal lands came into frightening focus as yet another area in which the federal government has neglected its duties. Strategic thinning can both reduce the risk of massive blazes and be an economic benefit to rural communities. With today’s State of the State Address, Governor Brewer called upon the federal government to stop its needless delay of the 4 Forest Restoration Initiative, a breakthrough, collaborative plan to restore 2.4 million acres across the Kaibab, Coconino, Apache-Sitgreaves and Tonto national forests.

“We are all blessed to be Arizonans, and I am honored to have a hand in guiding this state into its second century,” said Governor Brewer. “Working together, and drawing upon the grit of Arizona’s founders and judgment of the giants of our past, I’m confident Arizona’s next 100 years can be even more fruitful than the last.”

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Congressman Flake Criticizes Obama Administration Decision to Ban New Uranium Mining Claims in Northern Arizona

FOR IMMEDIATE RELEASE: January 9, 2012

Mining Can Stimulate Economy without Jeopardizing Natural Beauty of the Grand Canyon

Mesa, Arizona – Republican Congressman Jeff Flake, who represents Arizona’s Sixth District, today condemned the Obama Administration’s decision to implement a 20-year ban on new mining claims on 1 million acres of federal land outside of Grand Canyon National park in an area known as the Arizona Strip.

In 2009, Department of the Interior Secretary Ken Salazar halted new mining claims for two years. In extending the ban on new claims for another six months in July of 2011, the Secretary announced that the preferred alternative is to implement a 20-year withdrawal.

“Uranium mining in northern Arizona occurs well outside Grand Canyon National Park and poses no threat to the Grand Canyon or the tourism industry in northern Arizona. This withdrawal is simply another example of the Obama Administration’s overreach that will stymie local economic growth and local job creation,” said Flake. “The Grand Canyon is a treasure, so if I believed that uranium mining in parts of northern Arizona posed a threat to the Canyon, I would not support it.”

Congressman Flake has worked to prevent this withdrawal from being put in place. In July of 2011, he added language to the House Interior Appropriations bill that prevents the Interior Department from moving ahead with a withdrawal plan. Congressman Flake’s language wasn’t included in a final FY2012 spending bill. In October of 2011, along with Congressman Trent Franks (AZ-02), Congressman Flake introduced in the House the Northern Arizona Mining Continuity Act, which would prohibit the Department of the Interior from implementing the withdrawal. Senators John McCain (R,-AZ) and Jon Kyl (R-AZ) introduced the legislation in the Senate.

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NFIB Jobs Statement: No Rally in Jobs at Close of 2011, but Small Business is Cautiously Optimistic about 2012

WASHINGTON, D.C., January 5, 2012Chief economist for the National Federation of Independent Business (NFIB) William C. Dunkelberg, issued the following statement on the December job numbers, based on NFIB’s monthly economic survey that will be released on Tuesday, January 10, 2012. The survey was conducted throughout December and reflects the responses of 735 randomly-sampled NFIB members:

“Unfortunately, December’s jobs numbers fizzled, with the net change in employment per firm turning negative again; small businesses lost an average .15 workers per firm. Seasonally adjusted, 13 percent of the owners added an average of 2.6 workers per firm over the past few months, and 12 percent reduced employment an average of 3.5 workers per firm. However, the majority of owners (75 percent) made no net change in employment. Forty-five percent of owners hired or tried to hire in the past 3 months, but 34 percent of them reported few or no qualified applicants for the position(s).

“The good news is that the number of owners cutting jobs has ‘normalized’. In the past several months, reports of those cutting workers have been at the lowest levels since the recession started in December 2007. Initial claims for unemployment are now running closer to 375,000—a great improvement in recent months. In a solid job market, over 300,000 file initial claims for unemployment, thus current readings are much closer to full employment levels than they have been for years.  The percentage of owners adding workers continued to trend up. Given this trend, reports of new job creation should see a slight uptick in the coming months.

“Fifteen percent of owners (seasonally adjusted) reported hard to fill job openings. Although down 1 point from November, this is the second highest reading in 39 months. Over the next three months, 9 percent plan to increase employment (down 2 points), and 8 percent plan to reduce their workforce (down 3 points), yielding a seasonally adjusted net 6 percent of owners planning to create new jobs, a 1 point decline but still one of the strongest readings since September 2008.

“Only time will tell what 2012 will bring. At least it appears that plans to hire are trending in a positive direction.”

# # #

NFIB is the nation’s leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

Rep. David Schweikert Welcomes Silicon Valley Bank to Arizona

FOR IMMEDIATE RELEASE: January 4, 2012
CONTACT: Rachel Semmel

Scottsdale, Ariz. – Congressman David Schweikert welcomed Silicon Valley Bank to Arizona yesterday at a press conference announcing their expansion. Silicon Valley Bank will bring hundreds of well-paying, financial sector jobs to the state over the next few years, including a new branch in Tempe:

“I am thrilled that Silicon Valley Bank is coming to Arizona. Their decision to expand here is reflective of our high quality workforce and the fact that our state is a great place to live and create jobs,” said Rep. Schweikert.

“Arizona is open for business, and Silicon Valley Bank is exactly the type of business we desperately want here.”

NOTE: To view pictures of this event, click here.

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Governor Brewer reacts to S&P credit upgrade, calls it one more sign of recovery for State of Arizona

FOR IMMEDIATE RELEASE: December 21, 2011
CONTACT: Matthew Benson

Standard and Poor’s Upgrades Credit Outlook for State of Arizona
Latest Indication that the Arizona Comeback is in Progress

PHOENIX – One of the nation’s largest credit ratings services, Standard and Poor’s, announced today that it has upgraded to “stable” its outlook on the State of Arizona’s fiscal condition. S&P also upgraded to “stable” its outlook on the State’s certificates of participation and lease revenue debt.

State of Arizona finances previously carried a negative outlook from the credit ratings service.

“This is fantastic news, and serves as one more indication that Arizona is on the comeback trail,” said Governor Jan Brewer. “The last three years haven’t been easy. But I’m happy to say that the difficult decisions I’ve made, together with the Arizona Legislature, have helped put this state back on solid financial ground. For the first time in years, Arizona has a growing economy and a state government it can afford.”

In announcing the credit outlook revision, S&P pointed to the State of Arizona’s diverse economy, continued population growth, moderate debt burden and expectations of a sizable budget surplus in fiscal 2012.

“We base the outlook revision on what we view as Arizona’s improving fiscal outlook,” S&P credit analyst David Hitchcock explained in today’s report.

The S&P announcement is just the latest sign of the state’s improving economy and financial position. In other recent news:

- Arizona added 12,800 jobs in November, driving down the state’s unemployment rate to 8.7 percent. The rate is the state’s lowest since February 2009.

- Arizona has added an estimated 45,800 jobs so far this year. The state’s job growth from October 2010 to October 2011 ranked 7th best nationally, according to the U.S. Bureau of Labor Statistics.

- State revenues continue to outpace projections, and the Governor’s Office of Strategic Planning and Budgeting now estimates a combined surplus of $1.3 billion between the remainder of this fiscal year and next.

“Our mission isn’t accomplished, but today’s announcement from S&P is validation that we’re on the right path,” said Governor Brewer. “We’re going to keep state government small, efficient and effective, and continue working to put in place the conditions for private enterprise to flourish and grow. I believe that 2012, Arizona’s Centennial year, is going to bring more great news for the people of our state.”

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Special Poll: Stop Punishing Investment to Spur Job Growth


Small-business owners point to a way out of Arizona’s recession

PHOENIX, Ariz., Dec. 14, 2011 – Small-business owners believe Arizona needs further legislative action to spur job creation and overwhelmingly favor lowering the property tax burden on new equipment and machinery to do so, according to a special poll released today by their leading representative association.

“Small business wants job creation to continue to be the highest priority for Gov. Jan Brewer and the Arizona Legislature next session,” said Farrell Quinlan, Arizona state director for the National Federation of Independent Business, America’s largest small-business association. “Lowering the cost for small businesses to create jobs through meaningful property-tax relief and the further lifting of the regulatory burden will help restore Arizona’s economy and put our citizens back to work.”

The NFIB survey found near unanimous support among small business owners with 93 percent agreeing our leaders should keep job creation a high priority. It also found 77 percent of small business owners favor significantly increasing the amount of a business’ equipment and machinery that is exempt from personal property taxation.

The survey based its personal property tax questions on a legislative referral being developed by Senate Majority Leader Andy Biggs (Gilbert) and other lawmakers, including House Ways and Means Committee Chairman Jack Harper (Surprise). The legislation, called the Small Business Job Creation Act, asks voters to increase the Arizona Constitution’s exemption for new equipment and machinery to an amount equal to the annual wages of 50 Arizona workers or approximately $2.3 million from the current $67,000.

The NFIB survey dramatically reveals that lowering the tax burden on a business’ equipment and machinery would lead to a burst of job creation from small businesses. When asked if Sen. Biggs’ proposal becomes law, 46 percent of small business owners said raising the personal property tax exemption would likely lead their businesses to hire new workers while 56 percent said such a move would likely result in more equipment and machinery purchases.

“Clearly Arizona’s economy has yet to recover and that’s born out in continued weak job creation numbers and Arizona’s unemployment rate remaining stuck at 9 percent,” said Quinlan. “Small businesses have historically led our state and nation out of recessions through creating new jobs and investing in the future. Small business’ message to our political leaders is unmistakable, job creation is the top issue and lowering small business’ cost of creating those jobs is a great place to start.”

The poll was conducted September 6 to October 21, 2011 with 496 respondents who are Arizona small business owners. The entire poll can be read by clicking here. Results from NFIB’s fuller, annual survey on other issues will be released in the coming weeks.

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NFIB is the nation’s leading small business association with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

NFIB: Thanks to Congress for Keeping NLRB in Check

NFIB Key Votes Workforce Democracy and Fairness Act to protect small employer rights

WASHINGTON, D.C., November 30, 2011 — The National Federation of Independent Business (NFIB) released the following statement by Senior Vice President for Federal Public Policy Susan Eckerly regarding today’s vote on H.R. 3094, the Workforce Democracy and Fairness Act. The legislation was proposed in response to the National Labor Relation Board’s (NLRB) recent proposal on “ambush” elections and its decision in Specialty Healthcare to allow micro-unions, and is strongly supported by the NFIB.

“The NLRB is at it again. In an attempt to circumvent Congress—after it prevented the passage of card check legislation—the NLRB proposed the ‘ambush election rule,’ condensing the time period in which employers and employees have to prepare for a union election, so undermining the rights of both. And in its latest effort to blunt employer rights, the Board ruled in favor of so-called micro-unions, allowing unions to organize mini-bargaining units throughout a business. Unfortunately, the NLRB fails to realize that its pro-union actions will only create more uncertainty for small-business owners at a time when the country needs them to be creating more jobs.

“Fortunately, Congress has responded. In passing this bill, the House has demonstrated its understanding and concern for the unique demands that the NLRB’s irresponsible actions would place on small business. It is always a challenge for small business owners to keep current with new regulations and labor laws, especially in the current economic environment. It is the responsibility of our lawmakers to ensure that our nation’s job-creators are given the tools they need to succeed—not overwhelmed with rules and prohibitions that suppress growth and hiring. With so many small-business owners identifying economic and political uncertainty as their primary concern, NFIB is pleased that with its vote today, Congress has taken steps to renew small-business confidence.”

NFIB is the nation’s leading small-business advocacy organization, representing 350,000 small businesses around the country.

# # #

NFIB is the nation’s leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

NFIB Healthcare Bulletin: PPACA’s Pyroclastic Plume


By Dr. Bob GraboyesNFIB Research Foundation, Senior Fellow for Health and Economics

A thick volcanic plume is flowing over the 2010 healthcare law. Rumbles are heard from the U.S. Supreme Court which, in 2012, will issue a fourfold constitutional judgment. To one centrist scholar, the law’s constitutional frailty suggests chambers of operational dysfunction beneath the surface. An NFIB study estimates how that dysfunction will waft over small business and the rest of the economy. And a Treasury Inspector General’s report indicates that the law’s overhyped tax credit provides little shelter. As the law sags beneath the ash, NFIB suggests twelve ways that Congress could begin to replace the law with real reform that improves healthcare and cuts costs.

The constitutional challenge: The U.S. Supreme Court announced on November 14 that in 2012, it will decide the fate of the Patient Protection and Affordable Care Act (PPACA). From the many cases wending their way through the federal courts, the Supreme Court selected NFIB v Sebelius as the centerpiece of its deliberations. In March, the Court will hear arguments on four questions: (1) Is the unprecedented individual mandate constitutional? (2) If the Court strikes down the individual mandate, must it also strike down the entire law? (3) Does the Anti-Injunction Act require courts to wait until 2014 to consider constitutional challenges, since no penalties will be paid on the mandate until then? (4) Does PPACA’s massive increase in Medicaid unlawfully coerce the states into participating? A ruling is likely to come in June.

In 2010, the National Federation of Independent Business (NFIB) joined with 26 of the 50 states to challenge the healthcare law’s constitutionality. A Florida federal court ruled that the individual mandate was unconstitutional and ordered the entire law struck down, since it lacked a severability clause. The Eleventh Court of Appeals agreed that the mandate was unconstitutional but allowed the rest of the law to stand. NFIB appealed the second part of that ruling, arguing that without a severability clause, the entire law must fall. More information on NFIB’s lawsuit is available at www.nfib.com/lawsuit.

Operational dysfunction: In a penetrating column, Walter Russell Mead (Bard College) explored the deeper significance of the lawsuit: “Writing a bill that passes constitutional muster should be easy in a Congress so rich in lawyers and legislation writers.  Writing a bill that successfully improves American healthcare delivery while controlling costs, on the other hand, is hard.  Very, very hard.  If they did so poorly at the easy part of their task, the part where we can actually measure and monitor their success, what kind of mess have they made of the hard and murky parts that nobody, including the authors of the bill, really understands?”

Job losses: NFIB has supported healthcare reform for decades but strongly opposed PPACA because it failed to do what Professor Mead suggested was important: improving healthcare delivery while controlling costs. As an example, the NFIB Research Foundation has just released a job-loss study enumerating the damage that PPACA’s higher costs will do to small business. “Effects of the PPACA Health Insurance Premium Tax on Small Businesses and Their Employees,” by Michael J. Chow, estimates the job losses that will result from just one provision of the law – PPACA’s health insurance premium tax. Chow estimates that this tax “will reduce private sector employment by 125,000 to 249,000 jobs in 2021, with 59 percent of those losses falling on small business.” This tax falls heavily on small business while bypassing big business, labor unions, and governments; and it is only one of a constellation of cost-increasers that small business faces in PPACA. NFIB is spearheading a repeal coalition aimed at dropping this tax; toward this end, H.R. 1370 and S. 1880 have been introduced in the House of Representatives and Senate.

Credit oversold: At the same time, the most heavily-touted cost-decreasing measure in the law turns out to be a dud. PPACA supporters have argued that over 4 million businesses would benefit from a tax credit of up to 35% of the businesses’ health insurance costs (50% beginning in 2014). NFIB consistently said that the credit is fine for those who can make use of it, but that relatively few businesses would get much out of it. The preliminary figures are in now, and they are worse than NFIB’s pessimistic estimates were. The Treasury Inspector General for Tax Administration reported that as of mid-October, only 309,000 businesses had claimed the credit for 2010 and that the average credit per business was around $1,346 – not much of inducement to offer insurance.

Twelve doable reforms: Whichever way the Supreme Court rules, the country will need real healthcare reform that improves healthcare delivery and moderates costs. Toward this end, NFIB has posted a set of twelve NFIB Healthcare Solutions that could begin the task of replacing PPACA. The proposals include (1) Tax parity between the group and individual markets; (2) Tax parity between insurance purchased by the self-employed and groups insurance; (3) Defined contribution health insurance; (4) More transparent measures of cost, options, and quality; (5) Public and/or private exchanges; (6) Interstate insurance purchasing. (7) More risk-pooling options for small businesses and individuals; (8) Mechanisms to get insurance for those with pre-existing conditions; (9) Greater insurance portability; (10) Greater latitude for consumer-driven health insurance products; (11) Wellness incentives; and (12) Malpractice reform. These reforms are just a start and did not touch on two big areas where reform is needed: healthcare delivery systems and entitlements.

Conclusion

Those who wrote this law ought to go to bed each night fearing two things. Their lesser fear should be that the Supreme Court overturns PPACA, leaving their vision of healthcare reform as dead as Pompeii. Their greater fear should be that the Supreme Court doesn’t overturn the law, for then they will spend the next generation explaining the destruction they brought upon American healthcare and the American economy.

The real lesson to learn from Ohio

by Nick Dranias
Goldwater Institute

Although labor unions have been trumpeting their success in overturning Ohio’s ban on public sector collective bargaining after it was referred to the ballot in last week’s election, their victory was more about voter confusion than political strength. They successfully obscured the critical distinction between private sector and public sector unions. That distinction makes all the difference because it is precisely what justifies a ban on collective bargaining in the public sector that could never be justified in the private sector.

Unlike most private sector unions, public sector unions help elect their employers. Public employers thus have an interest in satisfying the demands of union members that private sector employers typically do not have. Not only that, public employers also have an inherently greater ability to pass the cost of any labor deal onto the taxpayer. Unlike a private sector business, government can forcefully seize money to pay labor costs through taxation. Although overtaxed residents can move away, a government’s tax base is far more captive than the shareholders or customer base of any private sector business.

These differences naturally cause public sector unions and employers to collude against the taxpayer far more often than private sector unions and employers collude against shareholders or customers. Taxpayers are uniquely vulnerable to fiscally extravagant and unsustainable compensation agreements being reached through collective bargaining between public sector unions and the governments that employ their members. Even worse, these fiscal abuses are imposed by government officials who are supposed to be public servants dedicated to protecting the taxpayers. A ban on public sector collective bargaining corrects that imbalance.

Governor Kasich and elected officials nationwide must not read more into this first defeat than they should. For now, it’s time to focus on better informing taxpayers about the critical differences between public and private sector unions. Once the seeds of information have been sown, genuine public servants and citizens at large will support banning public sector collective bargaining.

Nick Dranias holds the Clarence J. and Katherine P. Duncan Chair for Constitutional Government and is director of the Joseph and Dorothy Donnelly Moller Center for Constitutional Government at the Goldwater Institute.

Learn More:

Huffington Post: Ohio Issue 2: Controversial Anti-Union Law Defeated By Voters

Rep. Quayle discusses Pro Growth Tax Reform

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NFIB Jobs Statement: October Brought Early Snow but Not New Jobs

WASHINGTON, D.C., November 3, 2011Chief economist for the National Federation of Independent Business (NFIB) William C. Dunkelberg, issued the following statement on the October job numbers, based on NFIB’s monthly economic survey that will be released on Tuesday, November 8, 2011. The survey was conducted in October and reflects the responses of 2,077 randomly-sampled NFIB members:

“The cold has set in, and it looks like it might be a long winter for small-business owners. Still hunkering down, small-business owners reported a small, but overall reduction in employment, posting an average reduction of 0.1 employees per firm in October.

“While consumer spending posted a slight uptick, those gains did not translate to improved small-business sentiment, and more importantly, did not create jobs. Seasonally adjusted, 12 percent of the owners added an average of 3.1 workers per firm over the past few months, but 11 percent reduced employment an average of 3.9 workers per firm. The good news is that October’s jobs numbers are better than September’s (which showed a net decrease of 0.3 employees per firm), but still not good enough to lower the unemployment rate. Some firms do have job openings, but 31 percent of those who hired or tried to hire reported few or no qualified applicants for the positions.

“Fourteen (14) percent of small employers (seasonally adjusted) reported hard to fill job openings—the same as last month. Over the next three months, nine percent plan to increase employment (down 2 points), and 12 percent plan to reduce their workforce (unchanged), yielding a seasonally adjusted net three percent of owners planning to create new jobs. This is down 1 point from September and 2 points below August, the month that has, thus far, posted the strongest reading for 2011. For some context, in an expansion, this number should exhibit double digit readings.

“A snapshot at regional numbers reveals that job creation plans were quite negative among firms in all regions except the West Central and Mountain states. Energy development is driving a lot of business activity in these states.

“Overall, prospects for job creation remain bleak. I’ll say it again — it could be a long winter.”

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NFIB is the nation’s leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

Rick Perry is a Doer, Not a Talker

“If you’re looking for a slick politician or a guy with great teleprompter skills, we already have that–and he’s destroying our economy.

I’m a doer, not a talker.

In Texas, we created 40% of the new jobs in the entire country since June of 2009, and we cut a record $15 billion from our state budget.

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