Thursday, September 9, 2010

Senator Warner talks about jobs and tax cuts

Today, NBC12 News Ryan Nobles interviewed Sen. Mark Warner on First@4. Sen. Warner shared his thoughts on the Obama Adminstation, jobs and the possibility of extending the Bush Adminstration Tax cuts

At the very ended of the interview, Sen Warner commented briefly on legislation that may be passed next week that would "work around the edges" to spur job growth. He gave no detail, so I went to his website to see if I could find out more detail on this legislation. Looks like this is the legistation he was referring to, America Recruits ACT.

In an article published in The Hill last January, Sen Warner sums it up by saying:

When the Senate reconvenes later this month, I will introduce the America Recruits Act. This measure will encourage employers to create information technology and manufacturing jobs here in the U.S. rather than locating these jobs overseas. Essentially, the bill provides incentives for where employers locate technology and manufacturing jobs and investment, as opposed to whether they hire employees.
My legislation offsets this job location differential by providing firms with up to $10,000 in the form of a below-market-rate forgivable loan for each high-paying manufacturing and IT job they locate here in the United States. While this amount of money, by itself, is obviously not large enough to incent a company to build a brand-new facility, it is substantial enough to supplement a state’s overall economic development efforts that increasingly are necessary to help develop a productive workforce.

The creation of good information technology and advanced manufacturing jobs will, in turn, generate income and sales tax revenues for state governments. This modest job location incentive would make many more parts of the United States attractive to technology firms and the jobs that they bring.

Yet, in this very interview Sen. Warner said this about American company's: "....the good pieces of news is there's over two trillion dollars in cash on American large company balance sheets right now. American large companies have never been in better shape. We have to give them the predictability to go ahead and invest those dollars here in the United States." (emphasis mine) That is an interesting use of the word "predictability".

So to sum this up, American companies have never been in better shape, yet the jobs are not there and government once again is going to use our tax money to "repair" the problems. Could it be that the American companies are holding on to their cash because of the "unpredictability" of the cost of the impending Health Care Law?

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