SENATE BILL: Pacific Emergency Stimulus (Law'd)

[Potus]

I'm the author of this amendment and the next few to come and I've been given permission to speak in their defense.

Fritzcare includes a federal payroll tax. That payroll tax is currently levied on both employers and their employees. This is an obvious deterrent for employers to hire new people. The Pacific region is facing astronomical unemployment and measures must be taken at the federal level to incentivize job growth. Suspending the employer payroll tax does just that.

Families in the Pacific region are no doubt in awful shape. The economic climate with extraordinary tax rates and a government willing to put 80 billion dollars on the credit card has led to tough times for them all. Providing a payroll tax break for these individuals is not just good moral sense, it's also good economic sense. The payroll tax reduction will free up consumer spending and allow companies to drum up more business. This is also indirect aid to the Pacific government in the form of sales tax revenue.

The spending approach currently outlined in the stimulus plan is stimulus in name only. The nature of a stimulus plan isn't shoveling tax payer dollars into an 80 billion dollar whole and hope some of creates a job here or there. The nature of stimulus spending is that it needs to focus on getting money directly into the economy, not into the regional government. By taking measures to drum up economic activity, this tax relief actually provides stimulus to the economy of the Pacific region.

Economic growth is the key to solving the Pacific's budget problems. With a top tax rate of 30%, they are squandering any good the stimulus money would do them. Passing pro-growth measures to increase tax revenue and reduce government dependence will work wonders for the Pacific budget. That's economic stimulus. The current plan is a tax-payer funded plug in an 80 billion dollar hole.

[Potus]

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Excerpt from the Fritzcare Act.

[Potus]

Has the median income requirement been changed since the Basic Income Guarantee was implemented? I mean, a couple with a child makes more than $21,000 a year. If there has been no revision of the median income requirement, then the stimulus bill ought to waive that requirement.

Does the enactment of SEDZI mean that we are spending 65 billion dollars off the books? That would mean we're running a deficit.

[Potus]

More spending isn't the answer. If we gave some massive sum of money to the regional government, it still wouldn't affect any real, longterm economic growth. Shovel ready jobs are very rarely shovel ready. The conversation here can't revolve on how much we're going to spend and how we're going to spend it, especially when we are running a deficit. There are more fiscally responsible and more effective forms of stimulus, such as more tax relief.

Any regionalist concerns with the federal government bailing out a regional could should be quickly dispatched if the stimulus revolves around tax relief. It isn't spending the other regions' tax dollars on any sort of program. It's letting Pacific citizens keep their own money. No other region would be financing the tax relief. It would be more effective, avoid the concerns of other regions, and also be more fiscally responsible.

I've said this before, we have a growth problem. Our attention need to be on growing the Pacific economy, which in turn provides higher revenues for the Pacific regional government. A direct regional bailout, which is what the proposed spending is, should be leveraged to encourage a reduction in taxes and improve the business climate. I know the Governor has said they're working on it, but the taxpayers need assurance that their money isn't being spent on an irresponsible, ineffective Pacific bailout.

[Potus]

Ensuring that there is structure and stipulations for any bailout is vital. Assuring federal taxpayers that Pacific will get their fiscal house in order is a necessity.

If we do stimulus in a responsible manner, versus a bailout, then we will see a massive expansion in payroll tax revenue in July of 2015. The sunset for the payroll tax relief will be incredibly enriching for federal revenues, so we should recoup most if not all lost revenue. Let's face it, at least one in five Pacific citizens aren't paying the payroll tax. We won't be losing much.

[Potus]

If there is already 65 billion going into the region, the size of the bailout included in this legislation needs to be dramatically reduced.

[Potus]

Or leave it in place and no one legislates more money into the region before there is proper tax relief in the region.

[Potus]

Whatever procedural measures that need to be taken, should be taken so that the Senate can move onto greater discussions. Then the President can propose his changes converting this legislation into a "megabill."

[Potus]

It is my personal opinion that the Pacific's problems extend beyond that which a normal regional government is able to deal with effectively. However, with the introduction of Oakvale's position, we have the opportunity to approve extensive economic powers to someone with the region's interests at heart. Bureaucracy is inherently inefficient and a 5 person commission would definitely slow down the rate of progress and do no good for business confidence.

Creating an emergency toolbox for the federally appointed emergency manager, in this case Oakvale, to make spending and revenue adjustments in a timely and efficient manner is crucial. Projecting to businesses that things are turning around quickly will be very attractive to them. The Senate should develop a sunset target, 6% unemployment rate for example, and then develop a set of tools the manager has to work with. Those tools should include the ability shift spending and adjust revenue levels until the sunset target is met. The commission would still have a place in the system. If the members are unanimous in consent, they can halt the manager's actions and request a Senate review.

All of this would be included in any potential bailout for the region. Any plan developed by the Senate in regards to the emergency manager would have to be agreed upon by the regional government. If they shoot it down, fine. This would make any proposed reforms much more effective and efficient. We can 100% insure that what needs to happen is happening.