Friday, October 19, 2012

Vande Krol’s Three Point Plan for Job Growth


The number one priority of voters all across Colorado, and especially here in House District 35 is jobs. However, to improve Colorado’s economy, to help families, and to properly fund our government, we need to be concerned about private sector jobs.

Government jobs and programs can be funded only by tax dollars. Taking tax dollars to create jobs only funnels money through inefficient government and redistributes it to politically favored businesses. Because of the inefficiency of the tax system, many of those tax dollars are wasted on unproductive activities. Research indicates that it costs as much as $65 in overhead and waste to bring in $100 in federal tax revenue[1]. There is no reason to believe that Colorado’s taxing system is more efficient. Using tax dollars to create jobs is like taking water out of the deep end of the pool to fill the shallow end, and losing most of the water in the process. The end result is less water in the pool, less money in the private sector to create jobs.

Simply put, everything we expect from our government is possible only through taxing the private sector. More people working means more tax revenue. Tax policy should be designed to maximize revenue to the government while minimizing harm to the private sector. It should not be designed to make political investments in favored sectors. Government has a notoriously bad history when it comes to investing our tax dollars on business ventures.

We can have job growth here, but not by resorting to more government intervention. Job growth will happen when government gets out of the way and allows more people to pursue their dreams. I have a simple three-point plan that will enable more people to create small businesses and employ more people.

1.  Accountable Legislation

First, we need to better evaluate the effect of new laws. In Colorado, well over 300 bills become law each year. Many of them have adverse impacts on businesses and therefore on job creation. The businesses that will be affected by these new laws are sometimes not even aware of the impending damage. Governor Hickenlooper suggested that we have a “Business Impact Statement” for each new bill[2]. I agree. Let’s make that happen.

Legislative Council would designate a “waiting period” for each bill, and collect public comments about the impact of the bill. Thereafter, Council would issue a Business Impact Statement so that legislators would be better able to weigh the costs and benefits of each new proposed law.

2. Accountable Regulation

Regulations are an important part of civilized society. However, if the rules keep changing, or become so complex that they can’t be navigated without legal help, they become a barrier for small businesses that many cannot overcome. Colorado government agencies publish an average of over 15,000 pages of new regulations each year[3]. That’s on top of existing regulations.

We need to re-evaluate each government regulatory agency to determine if they actually provide any benefit to the public, and weigh that benefit against the cost. Further, re-evaluate the businesses and activities that fall under the jurisdiction of each agency. Some industries are better able to police themselves outside of government interference. Consumers are often better judges of a business than government. Reducing the power, scope, and quantity of regulating agencies will reduce costs for taxpayers and consumers, and lessen the barriers to entry for many would-be business owners.

3. Reigning in the Colorado Department of Labor

Give more choice to Colorado workers by strengthening the legal definition of “independent contractor.” The Colorado Department of Labor (CDL) has directly threatened the livelihoods of 1 in 7 Colorado workers that it believes are “misclassified employees.”[4] That’s 14% of working Coloradans! These workers chose to be business owners instead of employees, but the state is harassing and extorting the businesses they contract with, simply because the state is trying to find some way to make up for nearly $600 million it borrowed to pay unemployment benefits after the benefits trust fund became insolvent[5].

Current Colorado law lists a set of nine criteria for independent contractors. To qualify as an independent contractor, you have to meet the preponderance of these qualifications by evidence. Bureaucrats and auditors in the CDL have taken it upon themselves to interpret these qualifications in an arbitrary and severe manner.

By liberalizing the definition of independent contractor, the legislature can make more opportunities available for start-up businesses, and remove the threats to 14% of Colorado workers and the businesses with which they contract, which means more jobs!

Vande Krol’s Plan – More jobs, less government

Colorado is a land of opportunities. These three actions, each one limiting government, will allow more people to turn their ideas into opportunities and create businesses and jobs.


My Opponent’s Plan

My opponent has a five-point plan for job growth[6]. With the exception of the fifth point, they all require more government. All five points have serious flaws.

Her first four schemes involve more government spending, more bureaucracy, more gifts to politically favored big industries and big businesses, more risky investments with taxpayer dollars, more government replacement of private sector, and more top-down government control of classrooms.

The fifth plank in her plan calls for common sense. But after studying her legacy of higher taxes, regulations, cronyism, bureaucratization, and failure to recognize priorities, you have to ask, “where was her common sense for the previous years?”
You can learn more about the inadequacies of her plan at brianvandekrol.blogspot.com.


A Clear Choice

Jobs are created when a free society works to further individual interests. Government’s role is to protect individual rights. When government spends taxpayer dollars on ill-advised schemes, individual rights are eroded and jobs are lost.

You have a choice to make: do you want less government and more jobs, or more government and fewer jobs?




[1] James L. Payne, Six Political Illusions (Sandpoint, ID: Lytton Publishing Company, 2010) p. 60.
[2] http://www.cpr.org/article/Hickenlooper_Delivers_State_of_the_State
[3] http://www.leg.state.co.us/clics/clics2012a/commsumm.nsf/b4a3962433b52fa787256e5f00670a71/ebb72621d52ddd1d872579970072aa44/$FILE/120201%20AttachD.pdf
[4] http://www.denverpost.com/business/ci_19477193
[5] http://www.denverpost.com/breakingnews/ci_20993933/colorado-sells-bonds-restock-unemployment-insurance-fund
[6] Peniston mailer, September, 2012

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