Question of the Week: Jobs III

These questions are culled from phone calls, letters, faxes and e-mails sent to Rep. Gallegly's Camarillo, Solvang, and Washington offices. Each week Rep. Gallegly adds another question and answer. Please add your comments.

August 26, 2011

Question: What are you doing to help create jobs?

Answer: In addition to streamlining business regulations, which I discussed last week, and requiring all employers to verify that all new hires are legally authorized to work in this country, which I discussed two weeks ago, the most important thing that we can do to encourage employers to create jobs is to keep tax rates low.

Raising taxes on individuals who make as little as $200,000 a year will hurt many small businesses, many of which file individual returns. That, in turn, will mean fewer new jobs. According to the Small Business Administration, small businesses have generated 64 percent of new jobs over the last 15 years. These companies also employ just over half of all private-sector employees. Common sense says that increasing taxes on small businesses will divert revenue from wages and benefits.

In addition, I have long supported streamlining the tax code so businesses can reduce their expenditures on complying with the code. Simplifying the tax code by closing loopholes would enable us to lower the tax rates for all Americans. I also support allowing American businesses to bring back overseas profits without a tax penalty. This will encourage international companies to invest their profits back into our economy.

For more information on my positions on the economy, please see my Key Issue: Economy page.

For previous Questions of the Week chronologically and by topic, please see my Questions of the Week page.