Paycheck Protection for All
If you’ve been to the grocery store lately, filled up your gas tank, or opened your utility bill, you already know the reality: Americans are paying more and getting less.
Though inflation rates are slowly improving, many Pennsylvanians are still feeling the effects of many years of failed tax and spend policies—particularly drawing back to the Biden-era economic policies that left us with record-high inflation. This is not an accident, but instead the direct result of years of government-driven economic interference that has distorted our markets and weakened the value of every paycheck. This Congress didn’t cause the problem, but they’re uniquely positioned to solve it.
If we are serious about protecting working families, we need to focus on real, structural reforms that reduce government’s footprint in the economy and allow markets to deliver lower prices and higher wages. This starts with Congress’ historic Working Families Tax Cut, which prevented the largest take hike in American history.
Next, Congress should address the inflated cost of government projects by eliminating prevailing wage mandates.
Prevailing wage laws artificially increase labor costs on federally funded projects, often by 10 percent or more. These mandates reduce competition by pricing out smaller contractors, reward politically connected firms, and ultimately drive increased costs for taxpayers.
Shifting to a true market wage standard would increase competition and improve overall quality. Codifying reforms that roll back excessive federal contractor wage mandates would further ensure that taxpayer dollars are used efficiently rather than diverted into special-interest-driven policies.
Another major driver of higher prices is federal protectionism in shipping, particularly the Jones Act.
Not often talked about, but of critical importance, the Jones Act restricts domestic shipping to a limited number of U.S.-built and U.S.-flagged vessels, which in turn reduces competition. This leads to higher transportation costs that are passed directly on to consumers in the form of more expensive goods.
Repealing the Jones Act through legislation like the Open America’s Waters Act would reduce shipping costs and strengthen supply chains. In a modern, global economy, maintaining artificial barriers only harms American consumers and businesses.
In addition to reducing costs, policymakers should prioritize pro-growth tax policy by restoring full expensing.
Full expensing allows businesses to immediately deduct the cost of investments, which encourages capital formation, increases productivity, and drives wage growth. Letting this policy expire would discourage investment and slow economic expansion.
Making full expensing permanent would simplify the tax code and provide a strong incentive for businesses to invest in equipment, technology, and workers.
Finally, policymakers should expand flexibility for workers by modernizing benefits and retirement systems.
The current system is built around a traditional employment model that no longer reflects today’s workforce. Independent contractors, freelancers, and small business owners often lack access to affordable benefits and retirement savings options.
Reforms such as portable benefits would allow workers to carry health care and retirement savings from job to job. Expanding access to association health plans would enable small businesses and independent workers to pool together for more affordable coverage. Legislation like the Independent Retirement Fairness Act would further level the playing field by improving retirement options for nontraditional workers.
These changes would provide greater economic security without limiting worker mobility or innovation.
Taken together, these policies reflect a consistent principle: reducing government interference leads to lower costs and greater opportunity.
The 119th Congress didn’t cause this mess, but they can solve it. These reforms, if put into place, will allow the American taxpayers to feel the fiscal relief they’ve craved for many years now.
Take Americans for Prosperity’s Affordability Pledge today by heading to RemoveBarriers.com.
This is Emily Brey, State Director with Americans for Prosperity-PA.
