Shadegg calls for a three-year halt on legislation to help recovery

“There’s lots of capital in this country that is not going to work because the leaders in the country, the business leaders, who could create those jobs are waiting for the next blow from Washington,” he told MSNBC.

He suggested suspending the implementation of healthcare and regulatory reform and postponing the expiration of Bush-era tax cuts for at least three years. He also said giving companies a temporary “holiday” from submitting payroll taxes to the IRS and suspending income tax payments would help recovery efforts as well.

“We simply say we’re not going to collect these taxes for a period of time,” he said, adding that “there are things that we can do to take the burden of government off this economy and have it take off; spending more money is not doing that.”

Shadegg’s comments come as the national debt hovers around $13 trillion. But CNBC’s Erin Burnett tells MSNBC that debt is not a major concern for the marketplace since low interest rates have reduced the cost of borrowing.

“Our interest costs have dropped by nearly a quarter because the cost of borrowing has dropped, so right now the market is not punishing U.S. borrowing,” she said.

Burnett said that leaders in the markets understand that nearly 40 percent of the deficit stems from the economic crisis and that more normal levels of debt will return after the recovery takes hold.