By Jim Martin

The support system for America’s seniors is inextricably linked to the national economy. A decrease in job creation and growth means a smaller tax base to support the support programs retired citizens paid into throughout their careers and count on in retirement. With national debt growing in excess of $14 trillion, a sluggish jobs market, and concerns over future growth, it’s time for government leaders to take a new approach.

Current policies are causing domestic financial markets to sputter. Regulatory uncertainty stemming from healthcare reform, the financial services overhaul, and hundreds of new regulations pending at EPA are poised to increase business costs.

Tax uncertainty arising from the Administration’s desired rate increases have companies on edge. An outdated tax structure that maintains U.S. international competitiveness only by providing flimsy loopholes and deductions (which are constantly under political scrutiny for elimination) have investors dubious to push capital. And uncertainty over the growing debt is casting a shadow on future growth as private sector companies and their investors realize they will inevitably be called upon to generate the funds needed to address the problem.

While the private sector will be the solution to the problem, the government currently is the problem. By entertaining and even implementing policies which may garner votes in the short term, elected officials are pushing off and increasing the problem for the future. Consider what is occurring in the energy industry.

After last summer’s oil spill, the President has taken a hard-line stance against domestic energy development. From the yearlong ban on offshore drilling, to desired new tax hikes on the energy industry, the Administration has turned its back to a sector paying almost $100 million per day in taxes, royalties, and fees. But when these policies came into question after gas prices hit $4 per gallon, the President did not push for more domestic energy production.

Instead, he has taken oil from the Strategic Petroleum Reserve in an attempt to temporarily reduce prices and relieve political heat. Short-term solutions like this will not counteract the long-term problems caused by increased energy taxes and reduced domestic supply. President Obama has placed re-election over economic common sense. As a result, seniors on fixed incomes are paying more for energy, while the pool from which the retiring generation receives resources is shrinking.

The popular Washington idea that the government is going to pull the economy out of recession with higher taxes is standing in the way of recovery. Tax rates must be reduced across the board, luring investment into the U.S. from other countries where more favorable tax structures and investment opportunities currently exist. Raising taxes will only act as an indication that companies and individuals were right to keep their funds out of the U.S.

The President and his Administration ought to be working to strengthen the domestic businesses which will power our national economic resurgence, not place stumbling blocks in their path.

Mr. Martin serves as the Chairman of the 60 Plus Association, which has been called an “increasingly influential lobbying group for the elderly–often viewed as the conservative alternative to the American Association of Retired Persons.”

As published in Florida Political Press: http://www.floridapoliticalpress.com/2011/06/27/regulations-and-taxes-not-the-solution-but-the-problem/