Investor’s Business Daily:
But the House Republicans’ “Road to Recovery” budget is not fantasy; it applies the clear lessons of economic history to our current economic woes.
After the economically debilitating 9/11 terrorist attacks, President George W. Bush cut income and investment tax rates across the board. The result was well over 8 million new jobs generated and about 4.5% unemployment for a long time.
Similarly, Ronald Reagan’s response to the deep recession early in his presidency was to cut income tax rates by 25% and lower the capital gains tax rate to 20% from 25%. A massive expansion ensued, extending well beyond his two terms. Today, House Minority Leader John Boehner, GOP Conference chairman Mike Pence and their colleagues want to prescribe the same medicine for what ails us.
With Democrats trying to sneak a sweeping overhaul of the country’s medical system into law, including a government-run health plan that would unfairly compete against private insurers, the GOP is offering “tax incentives for millions more working families and small-business owners to obtain access to coverage.” The GOP plan would also let people “shop across state lines to purchase affordable policies that best meet their needs.”
Most important, however, the Republican alternative replaces the biggest spending spree in history with deep tax cuts – a proven economic jump-starter. It would establish “a simple and fair tax code with a marginal tax rate for income up to $100,000 of 10%, and 25% for any income thereafter, with a generous standard deduction and personal exemption.”