NCPA - National Center for Policy Analysis

A PRO-GROWTH PRESIDENT

February 22, 2005

President Bush could turn out to be the best president in recent history, says Arthur Laffer in the Wall Street Journal, and his pro-growth policies and steadfastness will benefit future generations.

According to Laffer:

  • Tax rates on capital are at the lowest levels in his lifetime and markets are more transparent than ever.
  • Unemployment is at 5.2 percent and falling, and labor productivity is high.

In the Social Security arena, Presidents Reagan and Clinton took steps to reduce the system's unfunded liability, by raising the retirement age and taxing benefits. Clinton even took the "pro-growth" step of removing the earned income limit on the elderly who receive benefits. Bush is taking the further step of associating effort with reward in Social Security and other areas by proposing such measures as:

  • Allowing 4 percentage points of the payroll tax to be invested in private accounts.
  • Making the 2001 and 2003 tax cuts permanent, and ending the death tax.
  • Eliminating double taxation on corporate capital and addressing tort reform.

Supporters of pro-growth, supply-side policies could not ask for a better president, says Laffer.

Source: Arthur B. Laffer, "You Don't Need to Read this Bush's Lips," Wall Street Journal, February 14, 2005.

For text (subscription required):

http://online.wsj.com/article/0,,SB110835649882453857,00.html?mod=todays_us_opinion

 

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