Principles for Economic Recovery:

1. Retain Jobs - The recovery efforts should be targeted to grow and retain market-driven, private sector jobs as a top priority. Good jobs provide the most stable tax base, a high quality of life, and prosperity for families.

2.  Enact Tax Cuts to Stimulate Business Growth - Tax cuts and incentives for businesses are necessary to stimulate the economy and should be explored.  The Northern Kentucky Chamber has evaluated numerous potential tax measures such as extending tax loss carry-backs; extending bonus depreciation and Section 179 expensing provisions; temporarily suspending requirements to recognize income from debt repurchase; reducing corporate capital gains tax to 15%; repealing 3% tax withholding on all government contract payments; temporarily reducing Small Business Administration (SBA) borrower and lender fees and increasing the government –guaranteed percentage for some SBA loans.   

3.  Target Infrastructure Stimulus Spending - Infrastructure spending should be carefully targeted toward “shovel ready” projects which provide short-term stimulus and long-term benefit, such as needed water and sewer infrastructure for Northern Kentuckians.  This could help reduce business costs in the short and long-run. The Chamber believes the stimulus package should focus on smart and effective measures that have immediate impact for business.  Over the long-term, however, government should not be in the business of funding, owning or running American Companies.

4.  Refrain From Increasing Federal Taxes – Tax increases, including but not limited to, the expiration of prior tax cuts, may cause further job loss in a recession. 

5. Prevent Higher Employer Costs - Any legislation or regulation which imposes higher costs of doing business or more litigation may cause further job loss in a recession.  In this climate, reduced regulation would send a positive message to job creators.

6. Eliminate Further Discretionary Government Spending – The added cost of targeted infrastructure in any stimulus plan will increase the budget deficit.  Further proposals to increase discretionary spending should be tabled during the recession and all discretionary expenditures should be reviewed and reduced, if possible.