Congressman Paul Ryan (R-Wisconsin) wrote an opinion piece in the Wall Street Journal. In it, he suggested four items that would immediately tackle the economy.
- Taxes: Lower the top tax rate to 25% instead of raising it to 39.6%. Collapse the lower tax brackets to 10% (up to $100,000 for couples). Lower corporate tax rates to 25%. These will make Americans more competitive on a tax basis with their competitors.
- Sound Money: End the easy money policy of the federal reserve. Return to a sound money policy that will keep interest rates down and increase confidence in investors and entrepreneurs to take the risks required for future growth.
- Financial Sector: Avoid nationalization of the banks. Once nationalization takes place, it's hard to remove it.
- A grip on entitlements: Faced with the prospect of $56 trillion in unfunded liabilities along with a bankrupt social security, entitlements need to be addressed. Investigate why costs are exploding and take action.
These are modest proposals without much detail except for the tax reform proposal. But they are complete steps in the right direction. Pity that it took a defeat at the polls for Republicans to shift towards these sorts of policies.
The tax reform, if implemented, would represent an immediate shot in the arm for the economy. More people will flock to the US and businesses will stay. But to work, it must accompany a radical cost reduction in the federal government. These are long overdue.
No comments:
Post a Comment