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Manzullo Meets with Governors, Seeks Commitment to Help U.S. Businesses Create Jobs in America

  (WASHINGTON) House Small Business Committee Chairman Don Manzullo (R-IL) today said America’s governors must join forces with Congress and the Bush Administration and champion policies in their state governments to help U.S. companies grow and create jobs.

Manzullo, who discussed his "American Jobs Agenda" today with governors Jennifer Granholm (D-MI), Jim Doyle (D-WI) and Edward Rendell (D-PA), said states should adopt similar agendas to make businesses more competitive so they can expand and create jobs.

Unfortunately, some states are impeding efforts to strengthen the climate for job creation. Last year, Gov. Rod Blagojevich (D-IL) successfully championed a plan to enact business license and fee increases in 300 different areas to plug a hole in the state’s budget. Blagojevich has proposed nearly 200 more fee hikes on Illinois employers this year. So far, the fee assault on Illinois businesses has cost the state 16,000 jobs and $120 million in business investment.

"It is unwise and inexcusable to raise taxes and fees on employers when we are trying to pull out of these tough times and create jobs in America," Manzullo said. "Our governors and state legislators need to work with us, not against us, to enact policies to make our companies more competitive so they can put Americans back to work."

Manzullo said the governors should focus on three primary areas to make their companies more competitive: tax and fee fairness, health care reform and regulatory relief.

Tax and Fee Fairness: Employers pay among the highest taxes in the world to do business in the United States, and President Bush and the U.S. Congress have enacted numerous tax relief measures the past three years to make American companies more competitive. Governors and state legislators should consider the overwhelming tax and fee burdens on their employers and enact reforms to make them more competitive in the global marketplace so they can create jobs.

Health Care Reform: The surging cost of health care is increasing the rolls of the uninsured and impeding the economic recovery and job creation efforts of our employers. Congress and the President are pushing legislation to reduce these costs through medical liability reform and by allowing small employers to purchase insurance at group rates through national associations (Association Health Plans). Governors and state legislators must consider similar medical liability reforms and health care options to help end this cost crisis for our employers. At a minimum, state governments must resist the urge to stop loading up health care plans with mandated coverages, which increase the cost of health care to employers.

Regulatory Relief: The United States leads the developed world in regulatory costs on its employers - totaling $843 billion annually from federal regulations alone. President Bush recently instructed his Office of Management and Budget to conduct a comprehensive review of all federal regulations affecting U.S. manufacturers and propose eliminating those regulations found costly and burdensome with little benefit. State governments should conduct similar reviews of their regulations on businesses and eliminate the unnecessary state regulations to reduce these burdensome costs and make their employers more competitive.