Regulatory uncertainty killing American business, investment

The same non-profit group who wasted no time in lobbying new members of Congress to slash federal spending — by blanketing Ronald Reagan Washington International Airport with print ads in time for this week’s freshman orientation session — unveiled today a quirky new web spot addressing the nation’s “uncertain” economic environment.

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The video, which features a bullish “boss lady” who opens beer bottles with her teeth, “is a joke,” but “its message is not,” a release by the group, Bankrupting America, reads. “Washington’s rhetoric and policies have been creating a damaging environment of uncertainty for businesses.”

[youtube]http://www.youtube.com/watch?v=2tw688Kbjy4[/youtube]

Indeed, ambiguity over business’ new regulatory burdens — from the president’s overhaul of the health care sector, financial regulatory reform and the near-certain expiration of the Bush-era tax cuts — have upended the private sector, concerned that expansions and the costly investments associated with it might break the bank.

A recent report by the Heritage Foundation revealed that if the White House blocks a deal to extend all the Bush era tax cuts — including those governing rates on capital gains, dividends and estate taxes, which are scheduled to expire on December 31 — the economy would produce 238,000 fewer jobs in 2011. For the next decade, the lapse would markedly stall job creation, producing on average 693,000 fewer jobs annually.

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Even as businesses have seen marginal rebounds in profits, like the one featured in the new advertisement, decision makers are unable — many unwilling, for good reason — to reinvest as legislators and the Administration use business as their whipping boy.

“When business lack clarity, they can’t plan ahead — choking expansion, investment and job creation,” the ad’s funders warn.

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