Where are the 'job creators'?

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Republicans have been rolling out the heavy buzzwords lately, and there must have been a fresh memo about the sonorous ring of "job creators."

House Speaker John Boehner repeatedly decries tax hikes on job creators, with congressional colleagues such as Paul Ryan and Jeb Hensarling forming a job-creators chorus behind him.

House Republicans recently published a "Plan for America's Job Creators" (but not for everybody else, presumably) and if you're an aggrieved job creator, you can let House Majority Leader Eric Cantor know what's bugging you by filling out a brief form at http://jobs.majorityleader.gov/.

The biggest problem in the U.S. economy, in fact, is a shortage of job creators to reward and protect.
  • Companies are barely hiring, and there are about 7 million fewer jobs now than there were at the end of 2007, when the Bush Recession began.
Part of the Republicans' plan is to lower taxes, streamline regulation, open more trade and take other steps that will stimulate job creation.

But we've already tried some of that, including several rounds of tax cuts since 2008.

Most job creators are still hiding.

Big companies employ a lot of Americans, but over the last few years they've been better at job destruction than job creation.
  • Between 2007 and 2010, companies with more than 1,000 employees shed about 2.6 million jobs, according to data from the Labor Department.
Many big companies have rebounded sharply from the recession, with impressive profits and a lot of cash on hand.

But even some of the most successful big companies aren't doing much job creation--not in the United States, anyway.

Big companies, in fact, aren't considered a big source of new jobs.

While they generate a lot of profits, they also tend to be mature enterprises more likely to swallow other companies and consolidate market share, which tends to eliminate jobs, not create them.

"It's the job of big firms to shed jobs," says Carl Schramm, CEO of the Kauffmann Foundation, which promotes entrepreneurship. "Big firms want to lower costs, which means lowering labor costs."

So if Republicans want to modify the tax code to reward and encourage job creators, they need to come up with a scheme that offers the lowest tax rates to fast-growing startups…




http://www.usnews.com/news/blogs/rick-newman/2011/07/13/why-the-gops-job-creators-are-hard-to-find
 
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