Small Business Confidence Falls: According to the National Federation of Independent Business’ (NFIB) June report, the Small-Business Optimism Index fell for the fourth month in a row and is now at its lowest level since October, 2010. Only 11 percent of small businesses plan on hiring new workers over the next three months, down from 13 percent in May. As NFIB Chief Economist Bill Dunkelberg explained, “Who can blame the prevalence of pessimism when administration officials are telling Congress that small businesses need to pay more in taxes to support government spending programs?”
Moody’s Demands REAL Spending Cuts: This week, credit rating agency Moody’s indicated that if budget cuts associated with a debt limit increase are not credible then they will likely downgrade the country’s credit rating regardless of a debt limit increase. According to Moody’s, “While the debt limit has been raised numerous times in the past, and sometimes the issue has been contentious, bond interest and principal have always been paid on time. If the debt limit is raised again and a default avoided, the Aaa rating would likely be confirmed. However, the outlook assigned at that time to the government bond rating would very likely be changed to negative at the conclusion of the review unless substantial and credible agreement is achieved on a budget that includes long-term deficit reduction. To retain a stable outlook, such an agreement should include a deficit trajectory that leads to stabilization and then decline in the ratios of federal government debt to GDP and debt to revenue beginning within the next few years.”
President Obama: Taxes Can’t Save Medicare: The President acknowledged at a recent White House press conference “number one, if you look at the numbers, then Medicare in particular will run out of money and we will not be able to sustain that program no matter how much taxes go up.”
The Republican Plan for Job Creation and Growth
House Republicans have a plan to restore confidence and certainty to the economy and create jobs. For more information on the House Republican Growth Plan, click here: http://jobs.gop.gov.