DALLAS-Jack Kemp has an answer for tire dealers and retreaders who think the federal government is stifling their ability to maintain and expand their businesses-change the Congress. Vote in new congressmen and women who understand entrepreneurship, capitalism, private property, limited government, free trade and free enterprise, he told tire dealers and retreaders attending the National Tire Dealers & Retreaders Association convention, Sept. 11.
And don't worry about the 1996 presidential election, he said. Worry about '94. ``Give us a new Congress.''
Mr. Kemp, a former congressman from western New York and a past secretary of the U.S. Department of Housing and Urban Development, drove home the point that job creation is the result of entrepreneurship, not government bureaucracy.
``We know intuitively that as the government tries to make more mandates and regulations, red tape and taxes on the burden of doing business, it squeezes at the margin the ability of people to expand their business,'' he said.
He provided the example of China. Having visited that country this past summer, Mr. Kemp said he was ``blown away by the incredible belief'' sweeping Asia and the Third World in privatizing property, to encourage entrepreneurship and free enterprise, to bring down the tax and regulatory burden on the people who create jobs.
``China is rushing to encourage free enterprise and Washington D.C. and the liberal Congress are rushing to redistribute wealth.''
Mr. Kemp, who currently is a director of Empower America, a public policy and advocacy organization, believes the current Congress doesn't understand that ``you create jobs by creating entrepreneurship.''
``Profits don't go into a deep hole. Profits don't go down into a pillow case or under the bed,'' he said. ``They go into expanding opportunities. They go into expanding jobs. They go into expanding technology and the creation of wealth.''
Mr. Kemp praised the efforts of the NTDRA and the National Federation of Independent Business in helping to stop, or at least slow, the proposed mandated health care in America.
But he said the real blow to the health care plan came from a small businessman from Omaha, Neb., who, during a health care forum, asked President Clinton, ``If your bill passes and you add this mandate on my small business, and more red tape and more taxes on the cost of labor, what am I going to tell the men and women I have to lay off?''
The President, according to Mr. Kemp, replied, ``Don't worry. We're going to do to every other business what we're doing to your business. Just raise your prices.''
Mr. Kemp added: ``Anybody who would ever make a statement like that has never paid a payroll....never had to deal with (the Occupational Safety and Health Administration) and never had to deal with the complexity of what it's like to be a small businessman or woman in America.''
To get the American economy moving again, Mr. Kemp said government should remove the impediments to business and entrepreneurship.
``We are over taxed and over regulated,'' he explained. ``Flatten out the tax code. Get the IRS out of the business of running your business.''
Eliminate the tax on capital gains, as well, he said.
``You want to create more capital in America?,'' he asked. ``Lower the tax on the formation of capital. The capital gains tax in America is not a tax on the rich. It's a tax on the poor who want to get rich.''
And he questioned the wisdom of the Federal Reserve tightening up on the money supply because it is afraid that too many people are going to work.
``I am convinced that inflation is not caused by too many people working,'' Mr. Kemp said. ``Inflation is not caused by too many tire dealers selling tires....Inflation is caused by a government that can't control its appetite to spend your money.''