Griffin Jobs Conference Theme: Uncertainty

More than 60 central Arkansas business leaders shared the stage with Second District Congressman Tim Griffin (R) on Wednesday in an effort to remedy the biggest proclaimed hurdle facing businesses today: uncertainty.

That uncertainty involves tax, regulatory and legislative policies. Some panelists raised questions regarding numerous tax revision proposals that lack consensus. Regulatory agencies and the extensive number of rules and burdens they place on businesses was commonly mentioned. The debt crisis and the uncertainty it brings to financial markets, world currencies and its impact on future funding government entities like UAMS research was a repeated topic of concern.

And, of course, health care reform and the uncertainty it has brought to the business and political landscape was frequently referenced.

"I think there’s a good bet that it will either be taken out through striking the individual mandate, or — depending on how elections go next year — I think if Republicans win, you will see a repeal of that law. I don’t think there’s any doubt about it," said Griffin.

SEEKING SOLUTIONS
The "uncertainty" theme was raised so many times at Griffin’s "Conversation About Job Creation," that it led to a question for the Congressman on how to make "uncertainty" less uncertain.

"The REINS Act is a big part of the answer," Griffin told Talk Business during a session break. In essence, the REINS Act would require federal agencies to draft regulations, get comments from the public, and then bring final rules and regs back to Congress for approval before implementation on any bill with an economic impact of $100 million or more.

"That totally makes sense," Griffin said. "Because the whole reason the agencies are doing regs in the first place is because they’ve been authorized by Congress. It’s not like Congress is butting in where they don’t belong. Agencies shouldn’t be doing them unless they’re consistent with Congress’ will anyway."

Some have criticized the REINS Act as impractical, possibly unconstitutional, or just a gimmick to curtail or eliminate the agency regulatory process.

Griffin also said that President Obama and his administration could suspend or delay analysis on new rules and regulations burdening businesses, and he suggested that Congress should do a better job in its bill writing so that less agency regulation is needed in the first place.

The first-term Congressman also criticized the U.S. Senate for not acting on House-passed measures that would roll back regulatory burdens on business.

"We’ve identified in Congress a number of what we think are overly burdensome regulations. We’ve passed bills to stop them, to make sure the agencies don’t implement them and those bills are stacking up like cord wood in the Senate," Griffin said.

FREE TRADE & FAIRER TAXES
On a panel encompassing education, manufacturing and technology leaders, a portion of the 10 panelists shared concerns and complaints ranging from OSHA overregulation to overseas tax unfairness to much-too-lengthy FDA approvals.

Paul Rivera, general manager of Caterpillar Inc.’s new North American Motor Grader facility in North Little Rock, said his company is on pace to meet its goals for growth, which include 200-300 new job hires in the next few years. Currently, Caterpillar employs about 500 in Arkansas today through its direct workforce and contract labor.

He expects the latest free trade agreements with Columbia, Panama and South Korea to be a boost for business, especially since about 45% of the motor graders made in Arkansas are shipped overseas. He expressed frustration that it took more than 4 years for Congress to pass the free trade deals.

Rivera also suggested that leveling American corporate tax rates with other countries could accelerate jobs and production in the U.S.

"Corporate tax reform, being more competitive with our counterparts overseas, would be a large help," Rivera said.