Economy
Job Creation
In households and neighborhoods throughout our area, we know that we have a long way to go before we make up the nearly nine million jobs destroyed in our country by the financial crisis and recession. Even with the creation of more than 5.2 million private sector jobs since the recovery began, and the resurgence in the auto industry that added 250,000 new jobs, the recovery is too important for government to sit on the sidelines. We simply must do more to accelerate economic growth and job creation.
"No Excuses Agenda"
As the Ranking Democrat on the House Ways and Means Committee, I have worked with my colleagues to introduce a package of jobs bills as part of a “No Excuses Agenda” to encourage Congressional Republicans to finally act to spur job growth. Congressional Republicans continue to sit on these bipartisan jobs bills that they once agreed would help create jobs and spur growth. There are #NoExcuses for inaction, and Congress should take these bills up immediately.
No Excuses Legislation:
H.R. 5974: Invest in America Now Act of 2012
The Invest in America Now Act, H.R. 5974, extends 100 percent bonus depreciation through 2012. Bonus depreciation is a bipartisan provision that, before it expired at the end of 2011, gave businesses an incentive to make major capital investments now by allowing them to write off the entire cost of a major purchase in the year it is made rather than depreciate those expenses over many years. It would benefit over two million businesses and the Treasury Department estimated when bonus depreciation was originally expanded to 100 percent in 2010 that it could support up to $50 billion in new investment. The Invest in America Now Act would offset the cost of this incentive by repealing the Section 199 manufacturing deduction for the Big Five oil and gas companies.
H.R. 6030: Hire Now Act of 2012
The Hire Now Act would provide a 10 percent income tax credit for firms that create new jobs or increase wages in 2012. Under the legislation a firm can increase its payroll by either hiring additional workers or raising the salary of existing workers. The credit is targeted to middle class jobs and wages and because the credit is based on Social Security wages, companies would receive no credit for wages above $110,100. It would be paid for by repealing LIFO and Intangible Drilling Costs (IDCs) for the Big Five integrated oil companies.
H.R. 6031: Wind Powering American Jobs Act of 2012
The Wind Powering American Jobs Act would extend the Production Tax Credit through 2013, providing a 2.2-cent-a-kilowatt-hour credit for electricity produced by wind turbines. Under the measure, wind project developers could continue to choose to instead receive a 30 percent investment tax credit. The Production Tax Credit, established in 1992, has helped lead to tremendous growth within the windy energy industry. The extension is paid for by repealing dual capacity taxpayer benefits for the Big Five integrated oil companies, which continue to reap record profits.
H.R. 6109: Investing in American Innovation Act of 2012
The Investing in American Innovation Act of 2012 is would extend the R&D Tax Credit, a 20 percent credit for certain research expenditures, which expired at the end of 2011, despite its proven effectiveness and broad bipartisan support. The legislation would provide an incentive to companies to increase their investments in research and innovation. In 2009, the last year for which data is available, more than 12,000 firms claimed R&D Credits related to nearly $100 billion in qualified research expenses. The measure is paid for by limiting treaty shopping and ending the special depreciation for corporate jets.
H.R. 6152: The Bring Jobs Home Act
The Bring Jobs Home Act provides a 20 percent tax credit for businesses that “insource” jobs back to the United States and is paid for by closing tax loopholes for companies that “outsource” jobs overseas and treat distributions of debt securities in a tax-free spin-off transaction in the same manner as distributions of cash or other property.
H.R. 6182: The American Advanced Energy Manufacturing Jobs Act of 2012
This bill extends and expands the 48C Advanced Energy Manufacturing Tax Credit. This tax credit program will help increase US clean energy manufacturing projects and expand manufacturing capacity to supply the world with US made parts and equipment. More manufacturing facilities will also support significant growth in exports of US manufactured clean energy products. The bill is offset by repealing two provisions relating to major integrated oil companies.
H.R. 6206: The Build America Bonds Act of 2012
The Build America Bonds (BABs) program was created in 2009 by the American Recovery and Reinvestment Act and expired at the end of 2010. This bill restores BABs and makes them permanent. BABs spur job creation and unleash private-sector investments by helping state and local governments finance infrastructure projects – building schools, hospitals, transit systems, and water systems. This bill is offset by repealing the Section 199 manufacturing deduction for major integrated oil producers.
Check out the #NoExcuses Facebook page
The Currency Reform for Fair Trade Act
As Ranking Member of the House Ways & Means Committee I have proposed a number of additional ideas to boost job creation as part of a Make It in America Agenda, including proposals to encourage investment in advanced energy manufacturing and to end currency manipulation.
Debt Limit and Deficit Reduction
Unfortunately, the ongoing debate over the debt limit and how to address the budget deficit has largely ignored the fact that we still have millions of workers who cannot find a job. We need to set a balanced framework to reduce the deficit now and over the long term, that includes both spending cuts and increased revenues, but we also have to preserve our ability to make the needed investments in infrastructure, education and research that are the key to our future competitiveness and prosperity. The Budget Control Act, which was enacted in the wake of last summer’s brinksmanship by Republicans over the debt limit, set forth limits on discretionary spending and put in place a mechanism called “sequestration” that would result in automatic cuts to defense spending and entitlement programs if Congress does not act to reduce the deficit. So far, this has not happened, but I believe Congress should replace sequestration with a balanced approach to deficit reduction.
Unemployment Insurance
As we work to revitalize Michigan’s economy, it’s critical that we do everything we can to help Michigan’s workers and families weather the current economic storm. Michigan is currently experiencing one of the most severe economic crises our state has seen with an unemployment rate of 8.9% and a deficit of 412,000 jobs. I hear from people in Michigan every day about the importance of unemployment insurance in helping them bridge this economic crisis.
Unemployment insurance ensures that workers who are jobless through no fault of their own will have support while they look for work. Unemployment insurance lifts families out of poverty - it is a lifeline for these families that keeps food on the table and a roof over their heads.
Congress has recently passed legislation that would extend Emergency Unemployment Compensation (EUC) through 2013. EUC is essential for those who have exhausted their state benefits but cannot yet find work in this tough economic climate. The non-partisan Congressional Budget Office concluded that the extension of EUC will create 300,000 jobs this year.
Auto Industry
After months of difficult restructuring, our auto industry is firmly on the road to recovery. While the last four years have been painful for our families and communities in the wake of plant closings and jobs losses, all three domestic auto companies have returned to profitability and are expanding again.
The positive news is that after months in 2009 of countering the arguments of those who felt the companies should just be allowed to fail, the federal government made an unprecedented commitment to the domestic auto industry, including $80 billion in direct support to GM and Chrysler. This assistance has worked. Both companies have exited bankruptcy and have returned to profitability through a renewed focus on building the best cars and trucks in the world. General Motors has repaid its loans to the federal government, and is again a public company following a successful IPO in which the federal government reduced its ownership stake in GM to 32 percent. Likewise, Chrysler has repaid its federal loans, and Fiat has purchased the federal government’s stake in the company.
Manufacturing
I also believe it is critical that the federal government do everything it can to support the manufacturing base of our economy. Our industrial sector has traditionally been a source of well paid jobs that helped create the middle class. Manufacturing is also at the heart of our economic competitiveness and national security though the creation of advanced technology. Manufacturing companies do about 70% of the private sector R&D in the United States. That’s why I am a strong supporter of funding for programs to support America’s manufacturers. I also believe it is critical that the federal government do everything it can to support the manufacturing base of our economy. Our industrial sector has traditionally been a source of well paid jobs that helped create the middle class. Manufacturing is also at the heart of our economic competitiveness and national security though the creation of advanced technology.
Financial Crisis
Congressional action was needed in 2008 to stabilize credit markets that were thrown into turmoil by the global financial crisis. What might have started as a Wall Street problem quickly became a full scale problem on Main Street -- for families, state and local governments, the auto industry and many types of small businesses. While some progress has been made I will continue to press for additional steps to ensure that Michigan families and business are able to access credit on reasonable terms. Today, 83% of TARP funding has been repaid, and the Treasury Department projects that the final cost of the program will be less than $28 billion.
Housing
I have talked with families who have lost their homes to foreclosure and seen the consequences first hand in our communities. Addressing the foreclosure crisis that is devastating our neighborhoods goes hand-in-hand with restoring stability to the financial system and jumpstarting our economy.
(Updated January 4, 2013)