Job Creation Plan
In Arizona's Congressional District 9 there are approximately 45,000 people who are either unemployed, underemployed or quit looking for a job. This represents a real unemployment rate of 13.9 percent, which is simply unacceptable. Sepulveda's Job Creation Plan consists of five steps that will expand our economy and begin to put the people of CD9 back to work.
I'm running for Congress to restore economic prosperity in America. As a small businessman, I know how to create jobs, I know how to meet a payroll and I know how and why jobs come and go. Furthermore, I understand firsthand how over-regulation by the federal government hurts business owners and entrepreneurs. In Congress, I will work tirelessly to create the conditions for success that will bring jobs to Arizona. In order to restore economic prosperity in America, we must create a friendly and appealing environment for business owners and entrepreneurs that rewards risk - not penalizes success.
With President Obama in charge, our country's problems have gotten worse. Under his administration, the unemployment rate is still over 8 percent. In fact, nearly 23 million Americans are struggling to find work. President Obama has delivered nothing but empty promises to the American people. We cannot continue down this dangerous path if we want to grow the economy and generate millions of jobs for Americans.
1. Use tax credits and other incentives to encourage capital investment in the U.S. to bring jobs back to America.
The United States should have the most business friendly environment in the world. To achieve this, it is essential to create a tax structure that attracts business investment.
- The corporate tax rates must be reduced. This can be achieved through increasing R&D tax credit generously and reducing the tax rate on investments in new capital equipment.
- An educated workforce is another essential element of a vibrant, modern economy and will attract investment. In Congress, I will unequivocally promote education, giving more control to the state and local governments through block grants.
2. Reduce the regulatory burdens adversely impacting businesses - small and large - and allow them to use the savings to grow their companies.
Business owners are bogged down by burdensome regulations from Washington that prevent job creation and hinder economic growth. The U.S. Small Business Administration reported that government regulations cost our economy over $1.75 trillion a year. We must remove onerous federal regulations that are redundant, harmful to businesses and impede private sector investment and job creation.
- Implement reforms and regulatory reductions to help entrepreneurs and small businesses attract capital. The JOBS Act is a great first step.
- Mandate a thorough congressional review and authorization before implementing any new regulations that add to the cost of doing business.
- Repeal Obamacare and replace it with free market solutions. In a recent U.S. Chamber of Commerce survey, 33 percent of business owners said Obamacare was their greatest or second-greatest obstacle to new hiring. Obamacare imposes a penalty on employers with over 50 employees that do not offer government-qualified health insurance. This provision will hurt job creation because it provides an economic incentive to stay under 50 employees. In addition, Obamacare imposes nearly $500 billion in new taxes on individuals and businesses over the next 10 years. Raising taxes in this economy is not the way to create jobs.
3. Eliminate taxes for the middle-class on interest, dividends and capital gains to stimulate savings, capital investment and job creation.
Allen Sinai, CEO, Co-Founder and Chief Global Economist and Strategist of Decision Economics, was asked by the American Council for Capital Formation to use his Sinai-Boston Model to determine the impact on jobs by eliminating the capital-gains tax. Sinai found that eliminating the capital-gains tax alone, with no other policy change, would create 1.3 million jobs per year.
- I support the elimination of taxes on interest, dividends and capital gains for taxpayers with adjusted gross incomes below $200,000. This will encourage Americans to save and make investments, facilitating economic growth and job creation.
4. Mobilize homegrown talent to develop new products and services, devise new processes and execute business plans that lead to the creation of better paying jobs.
The creation of new businesses and the development of innovative technology are critical for economic expansion. According to the National Bureau of Economic Research, business startups account for only 3 percent of employment but almost 20 percent of gross job creation. As a result, it is crucial that policy enacted by Congress facilitate not hinder entrepreneurs.
- Arizona needs to commercialize new technologies that will create their own demand because they are innovative. To date, we have lacked the capital required to start and grow such businesses. Therefore, Arizona must seek creative ways to attract capital resources. For this reason, I supported the Republican-sponsored Jumpstart Our Business Startups Act (JOBS Act), which was signed into law on April 5, 2012.
- Continue to spur innovation in America by increasing the Research & Development Tax Credit from 14 percent to 20 percent and make it permanent.
5. Promote efforts to export more products and services.
The more that businesses export, the more they produce. The more businesses produce, the more workers they need. In other words, exports have a significant multiplier effect. For every export related job, between one and five additional jobs are created, depending on the industry. In Congress, I will promote exports and eliminate barriers to trade.
- I support policy that mobilizes the technical and capital resources required to build and grow small, high-tech manufacturers that produce "Made in America" specialized products to meet international market needs.
- I will also seek other opportunities to expand market access for U.S. products and services internationally while vigorously enforcing our rights to protect American jobs from unfair practices by other countries.