America is in desperate need of economic growth. Wall Street economists are now guessing that fourth-quarter GDP will be less than 2% with the “whisper” number at less than 1%. Yet President Obama just proposed nearly $2 trillion in tax hikes, including a tripling of dividend tax rates and a a 60% rise in capital gains rates. That, even though keeping the status quo on taxes would mean a 20% boost in tax revenue over the next four years anyway thanks to the slowly recovering economy.
As Tim Geithner likes to say, “Plan beats no plan.” So what is the GOP pro-growth, anti-dent plan? How about this:
1. Cut the corporate tax rate to 15%, the same as Canada.
2. A moratorium on all major regulatory actions until the unemployment rate falls below 6%.
3. Phase out of payroll tax for families, 1/3 for each kid you have.
5. Phase out the deduction for state and local taxes
6. Limit the tax benefit for home mortgage interest deductions.
7. Limit corporate interest deductions.
8. An across-the board 2 percentage point cut in marginal tax rates
That’s good for a start.