[Congressional Record (Bound Edition), Volume 159 (2013), Part 7]
[House]
[Pages 9275-9277]
[From the U.S. Government Publishing Office, www.gpo.gov]




                                  JOBS

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 3, 2013, the Chair recognizes the gentleman from Illinois (Mr. 
Hultgren) for 30 minutes.


                             General Leave

  Mr. HULTGREN. Thank you, Mr. Speaker.
  Before I begin, I ask unanimous consent that all Members may have 5 
legislative days in which to revise and extend their remarks and 
include extraneous materials on the topic of my Special Order.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Illinois?
  There was no objection.
  Mr. HULTGREN. Mr. Speaker, as I begin, I do want to wish and hope 
that you and others of our colleagues had a very happy Father's Day 
yesterday. It is one of the most important things for fathers, and 
mothers, to be able to provide for their families.
  Mr. Speaker, this evening I would like to talk about what for many 
Americans is probably the most pressing, or maybe depressing, issue our 
country is facing right now: jobs, unemployment and the need to create 
more jobs. But while we as a Nation face challenges, the roadmap to 
prosperity is clear. The question is, will we act on the 
recommendations of those who create the jobs, that drive our national 
economy, America's small businesses and entrepreneurs?
  As I speak, the unemployment rate in the United States stands at 7.6 
percent. According to the American Enterprise Institute, just 64.4 
percent of working age men are employed, the lowest level by far since 
the Great Depression, and an astounding 5 percentage points lower than 
at the beginning of the current downturn. A staggering 4.4 million 
workers have been out of work for 27 weeks or longer.

                              {time}  2130

  In Illinois, my home State, the unemployment rate is even higher--at 
9.3 percent. The unemployment rate in my home State has been at or 
above 8.6 percent since April of 2009; 611,000 people are currently out 
of work in Illinois.

[[Page 9276]]

  According to the Bureau of Labor and Statistics, of the 26.3 million 
part-time workers, 7.8 million are working part time for economic 
reasons, meaning the job market wasn't robust enough to support full-
time positions or they could only find part-time work.
  Jobs, unemployment, job growth--all of these are issues on the minds 
of Americans because, directly or indirectly, all Americans are 
affected by them. When I meet with small businesses and employers 
around my district, I ask them, what would it take for you to create 
just one more job? I would love for them to create 10 more jobs or 20 
more jobs or 50 more jobs; but I ask them, what would it take for you 
to create just one more job? They tell me that the best way to spur job 
creation and economic growth is to reduce government regulations, cut 
taxes and simplify the Tax Code, and reduce the size of government by 
cutting spending.
  Having a full-time, stable job and going to work every day is 
necessary just to meet the challenges of daily living. Americans' 
pocketbooks are pummeled every day. Take gas prices, for instance. The 
nationwide average price for a gallon of gas has jumped by more than $1 
in the last 4 years from $2.58 a gallon in June of 2009 to $3.64 a 
gallon in June of this year.
  The price of gas in Illinois right now is averaging $4.08 a gallon. 
That's 15 cents per gallon higher than this time last year. In the 
Chicago area and in my district, prices are even higher. The average 
price for a gallon of regular gas is a ridiculous $4.28. This is just 
one example of how everyday life is becoming less and less affordable 
for ordinary Americans.
  Creating good, full-time jobs must be our priority. But small 
business owners in my district tell me that in the current ``business 
averse'' climate, this is difficult, if not impossible, for them to do.
  Jeff, the president of a small industrial pump manufacturing company, 
is not hiring. He would like to, but he says he can't. He says that 
``business owners have to be optimistic that the business environment 
will be suitable for business growth.'' He goes on to say, however, 
``The unfriendly business climate coming from Washington and the huge 
deficit spending reduces optimism that the business climate will 
continue to improve or even remain stable.'' Jeff also says, 
``Government regulations and high taxation create uncertainty--and 
government regulation and inflationary policies are driving up the cost 
of hiring. The primary resource of business needs is employees.''
  Then there's Tom, the president of a raw materials distribution 
company in my district, who says ``the biggest thing holding me back 
from hiring is uncertainty of the future business climate.'' Tom said, 
``We have already seen health care cost increases of nearly 20 percent 
year over year in early 2013, which was on top of the 12 percent 
increase in 2012.'' Tom also stated, ``We pay for 75 percent of the 
cost of health care for our employees. The parts of health care 
legislation yet to be implemented will probably penalize us even more 
for doing the right thing. We do not understand how health care 
legislation will impact our business.''
  The recommendations of the small businesses that create the jobs in 
this country--the ``engines of the economy''--are critical to 
increasing employment and spurring growth in our national economy.
  Reducing the regulatory burden on small businesses is one critical 
factor toward inducing them to hire more workers. The burdensome nature 
of proposed Federal regulations is making long-term planning for 
businesses and growth virtually impossible. An inability to plan is 
having a paralyzing effect on local investment and hiring.
  According to the National Federation of Independent Business, in only 
the last 3 months there have been 6,669 regulatory changes posted or 
notices posted on the Federal regulatory Web site. That's an average of 
74 regulations per day. Let me repeat that: NFIB's own study says in 
only the last 3 months there have been 6,669 regulatory changes posted 
or notices posted on the Federal regulatory Web site, an average of 74 
regulations every single day.
  This regulatory morass forces small businesses to hold onto any extra 
revenue they may have for fear of new compliance costs. This means 
foregoing opportunities to invest or hire new workers. Some businesses 
are forced to close altogether.
  A recent poll of the National Association of Manufacturers and the 
National Federation of Independent Business found that 62 percent of 
small business owners and manufacturers say the United States' own 
regulations, rules, and taxes impact their businesses more negatively 
than foreign competition. So our own regulations, according to a 
majority of business owners, are more harmful to them or more 
threatening to them than foreign competition.
  Small businesses are the engine of our Nation's economy. They create 
about two-thirds of new jobs in the United States. They employ more 
than half of the private sector workforce. We need to unleash their 
potential.
  So what can be done? Well, we must require regulatory authorities to 
review their regulations for usefulness and relevance and amend them as 
necessary to get rid of them if they are obsolete.
  I have introduced legislation to do just that. H.R. 309, the 
Regulatory Sunset and Review Act, requires Federal agencies to 
regularly review regulations on their books and establish a process to 
sunset those that are duplicative, conflicting, or no longer necessary.
  Small businesses need a seat at the table at the earliest stages of 
crafting regulations. Too often, regulators generating rules have 
little or no contact with the businesses affected by those regulations 
they implement and, thus, little knowledge of the impact on jobs.
  Regulators need to assess the long-term costs and benefits of 
regulations--including how they will affect job loss and job creation--
using the best available tools and adopt only those regulations whose 
benefits clearly outweigh the costs.
  The regulatory process requires transparency and accountability. 
Sharing publicly the reasons why certain public input was not 
incorporated and disclosing the data, methods, and models underlying 
Federal regulatory decisionmaking are also important steps to restoring 
trust to the Federal regulatory process.
  Reducing red tape is critical, but cutting taxes and implementing 
meaningful tax reform that incentivizes businesses to hire is also key 
to invigorating job growth. When taxes are lower, businesses invest 
their resources and hire more workers, which is exactly what we want. 
When taxes are lower, taxpaying citizens are able to keep more of their 
own money, money to spend as they see fit, to save, or to invest.
  Congress must consider the impact tax policy is having on small 
businesses' ability to succeed when small businesses are a primary 
source of job creation in the United States and the engines of economic 
growth.
  Small businesses--those with less than 500 employees--represent 99.7 
percent of all employers, and employ almost half of the private sector 
labor force--55 million workers. In Illinois, again my home State, 
small businesses represent 98.3 percent of all employers and provide 
jobs to 2.4 million workers, about half of the private labor force.
  So when it comes to economic and tax policy, we need to listen to 
Main Street small businesses and mom-and-pop shops that create the jobs 
in this country. This is what they are saying when it comes to taxes 
and spending:
  Ninety-one percent of small businesses find that the Tax Code is 
complicated enough to hire their own tax preparer.
  Eighty-five percent think Congress should revise the Tax Code.
  Eighty-one percent think government should cut spending before ever 
considering tax increases.
  Seventy-eight percent want to close tax loopholes.
  And 71 percent agree that tax reform should include lowering the tax 
burden on small businesses.
  Thus, to enable small businesses to create jobs and improve the 
employment climate in this country, tax rates must be low.

[[Page 9277]]

  High tax rates are a problem for small businesses because they siphon 
off revenue owners need to reinvest for growth and to create jobs.

                              {time}  2140

  So what needs to be done?
  The implementation of comprehensive tax reform that makes the Tax 
Code fairer, less burdensome, and more comprehensible for the folks who 
pay taxes and the small businesses that invest in hiring;
  The permanent repeal of the estate, or death, tax, which I have long 
advocated is critical for small businesses and maintaining a healthy 
jobs climate. Many small businesses are family owned. The death tax is 
a major impediment for such businesses to keep operating in a down 
economy once the owner retires or dies. Protecting small businesses 
from the death tax is important in order to keep Main Street businesses 
operating for future generations and for preserving their ability to 
create jobs as we try to grow this economy;
  We should cut taxes to spur investment and hiring. Lower tax rates 
lower the cost of capital and increase the rewards for the risks that 
businesses take in hiring new workers. I support increasing the small 
business expensing limit so businesses can immediately recover their 
costs and invest in their businesses and hire new workers;
  We must simplify the Tax Code. It is too complicated when 9 out of 10 
small businesses must hire someone to prepare their own taxes. Making 
the Tax Code easier to understand and follow and not placing new 
reporting burdens on small businesses will help them focus on growing 
their businesses and creating jobs.
  In addition to reducing regulatory burdens and cutting taxes, 
eliminating wasteful spending and reducing the size of government is 
key to job growth:
  Current trends have government spending continuing to hover at 22 
percent of gross domestic product for the next 10 years;
  Continued spending adds to the $16.6 trillion debt, and that, in 
turn, drives up interest costs to pay for borrowing;
  The CBO estimates that interest paid on the national debt as a 
percentage of the overall budget will more than double from the current 
6.2 percent of the budget to 14.1 percent, consuming an ever larger 
share of Federal resources.
  Clearly, we do need to cut spending relative to the overall Federal 
budget. Cutting spending reduces the amount of money government takes 
from the private economy. Cutting spending and reducing the size of 
government relative to the private sector keeps more money in the 
private sector where it can be put to productive use, such as in hiring 
and creating jobs. Cutting wasteful spending and balancing our national 
budget will also absolutely help job growth.
  It's simple: the Federal Government should not spend more than it 
takes in if we want to create an environment conducive to job creation. 
I have advocated for and have supported the budget my House colleagues 
passed this spring that balances the budget in 10 years by cutting 
spending and fixing our broken Tax Code so that it is fairer and 
simpler for everyone. I also support and have worked hard to pass a 
balanced budget amendment to the Constitution.
  Requiring the Federal Government to live within its means and balance 
spending with the money it takes in, just as families in Illinois and 
across America have to do, will instill fiscal discipline required to 
get our economy moving in the right direction. This will also promote 
confidence and create certainty within our Nation's private sector 
businesses so they can take productive steps towards hiring workers and 
growing their businesses.
  According to the small businesses I meet in my district, there are 
more things we can do to spur job creation in this country. We can open 
up American markets overseas. New markets mean a greater demand for 
American-made goods. The businesses that manufacture these products 
will hire workers to meet the demand.
  In that regard, I have voted in favor of free trade agreements with 
countries such as Colombia and Panama and South Korea. I have also 
supported permanent normal trade relations with Russia in order that 
American manufacturers can receive the benefits of open markets as a 
result of Russia's joining the WTO. We also must eliminate the 
bureaucracy that hinders the development of American products. 
Bureaucracy should not stand in the way of American innovation and 
bringing products to market.
  I am a cosponsor of the Protect Small Business Jobs Act. This 
legislation would provide small businesses with a limited grace period 
to correct regulatory violations, and if the violation is corrected in 
a timely manner, it allows for the waiver of any sanctions against the 
small business. This will help business owners like Tom, who, in 
referring to one Federal regulatory authority with which he was 
dealing, said, ``Rather than working with industry to fix alleged 
issues, it is imposing significant fines right off the bat without 
giving companies the opportunity to first fix the concerns.'' 
Government should be a facilitator, not an obstacle, to new product 
development and job creation.
  Mr. Speaker, the pathway to a growing economy and putting people back 
to work is clear. The small business job creators in my district and 
around the country have spoken: they want to get rid of burdensome and 
unnecessary red tape; they want lower taxes and a simpler Tax Code that 
lends to certainty and encourages growth and investment; and they want 
the Federal Government to exercise fiscal discipline and to serve as a 
facilitator for American innovation, product development, and 
marketing.
  Mr. Speaker, we can help American small businesses get Americans back 
to work. America is the land of opportunity where, with a mixture of 
aspiration and diligence, anyone can achieve one's dreams. Let's 
redouble our efforts and renew our commitment to our fellow citizens to 
help them build a bright future for themselves, their children, and for 
this Nation.
  I yield back the balance of my time.

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