The policy changes analyzed – decreasing corporate tax rates, increasing the R&D tax credit and making it permanent, and modernizing export controls on certain products – would significantly add jobs and grow the economy.
LOS ANGELES--(BUSINESS WIRE)--Changes to U.S. economic and tax policies can add 2.9 million jobs by 2019, while more than 3.5 million jobs can be created in each of the next three years by supporting investment in 10 key infrastructure project categories, according to Jobs for America: Investments and policies for economic growth and competitiveness, released today by the Milken Institute.
“Our report provides tools that they can use to weigh the options and make the policy and investment decisions that we need to get back to growth and back to work.”
The study analyzes two different approaches to how the United States can retain and create new jobs &ndash one on the policy side and the other on the investment side. The first outlines the potential growth in jobs and GDP that would result from changes to economic and tax policies and the second calculates the impact that $425.6 billion in infrastructure investments would have on job creation and the economy.
“With unemployment at 10 percent, the question on the minds of all policymakers is how to create jobs,” said Ross DeVol, Executive Director of Economic Research at the Milken Institute and lead author of the study. “Our report provides tools that they can use to weigh the options and make the policy and investment decisions that we need to get back to growth and back to work.”
The policy changes analyzed &ndash decreasing corporate tax rates, increasing the R&D tax credit and making it permanent, and modernizing export controls on certain products &ndash would significantly add jobs and grow the economy. Within five years, two-thirds of the total impacts would be felt. However, the full impact of these policy changes unfolds over a decade, making them medium- to long-term job-growth measures.
For more immediate job growth, the report looks at various infrastructure investments that total $425.6 billion across 10 project categories. The investment amounts are primarily derived from government sources and industry reports, while allocations are based on government agency estimates for prioritized infrastructure improvements, including backlogged projects that are currently unfunded.
The report aims to provide analysis and measure economic impact to assist policymakers who are looking at a variety of approaches to spur job creation and economic growth. The research was supported by funding from the National Association of Manufacturers.
Among the findings:
Tax changes
Infrastructure investment
The 10 infrastructure project categories analyzed in the report are:
The full report is available on www.milkeninstitute.org. A data website with the outcomes of the policy simulations and data sets for the investment in each of the project categories is available at www.milkeninstitute.org/jobsforamerica. An interactive investment model allows the user to input an investment amount in each category and calculate the projected jobs, wages and output.
About the Milken Institute: The Milken Institute is a nonprofit, independent economic think tank whose mission is to improve the lives and economic conditions of diverse populations around the world by helping business and public policy leaders identify and implement innovative ideas for creating broad-based prosperity. It is based in Santa Monica, Calif. (www.milkeninstitute.org)
